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Q'S RESPONSE TODAY
lcwatson
(46/F/Baton Rouge, LA (but trav)
7/7/00 12:26 pm
QUALCOMM Expects Early Global Deployment of Third-Generation CDMA Technology
Eight Chinese Manufacturers Confirm QUALCOMM's CDMA Intellectual Property Rights Agreements
SAN DIEGO - June 8, 2000 - QUALCOMM Incorporated (Nasdaq: QCOM) issued the following statement
clarifying the Company's unique position with respect to its Code Division Multiple Access (CDMA) intellectual
property rights and the deployment of third-generation (3G) systems.
QUALCOMM welcomes the worldwide resources that are being devoted to roll out third-generation CDMA
technology, including Multi-Carrier (cdma2000™ 1xMC and HDR in 1.25 MHz bandwidth, and 3xMC in 5 MHz
bandwidth) and Direct Spread (WCDMA in 5 MHz bandwidth). QUALCOMM owns a substantial portfolio of
CDMA patents, including many "essential" patents that are necessary for the deployment of any proposed 3G
CDMA system, such as Multi-Carrier, Direct Spread, and another system referred to as TD-SCDMA.
QUALCOMM has now granted royalty bearing licenses to more than 75 manufacturers for CDMA and, as part of
these licenses, has transferred technology and know-how in assisting these companies to develop and deploy
CDMA products. A significant number of these companies' licenses cover third-generation applications, including
WCDMA, 1x and High Data Rate (HDR). Under terms of QUALCOMMs existing 3G licensing agreements, a
licensee will pay the same royalty to QUALCOMM for 3G systems, including WCDMA, TD-SCDMA and 1x, as
that licensee pays QUALCOMM for today's CDMA infrastructure, phones and test equipment.
QUALCOMM will aggressively enforce its patent rights around the world and unlicensed companies that supply
products for 3G CDMA systems, such as WCDMA, as well as companies that use such products from an unlicensed
supplier will be infringing QUALCOMMs patents. QUALCOMM expects to charge the same royalty rates for all
third-generation products as it does for 2G (IS-95A), 2.5G (IS-95B) and 3G CDMA 1x, but, because terms and
conditions may change over time, QUALCOMM has reserved the right to adjust its license terms and conditions,
including increasing its royalties, for those companies that delay in entering into a license with QUALCOMM.
The Company expects that 1x will be the world's first commercial third-generation wireless technology, initially in
use by the end of this year and widely available in 2001. Because of its high spectral efficiency and limited
bandwidth requirement, both cdmaOne™ and non-CDMA operators can easily transition to 1x, achieving increased
network capacity, higher quality and the ability to offer high-speed wireless Internet access sooner while supporting
existing and new users. QUALCOMM believes that a great advantage is gained by early entry with CDMA and that
it would be wasteful to pour billions of dollars into non-CDMA technology that will be shortly outdated.
QUALCOMM understands that China Unicom is considering the deployment of CDMA 1x and possibly HDR for
3G. Such a deployment of third-generation technology in standard CDMA bandwidth would provide greater
capabilities than achieved by a later adoption of wider bandwidth WCDMA and ensure that consumers enjoy the
benefits of CDMA one to two years sooner.
The Company welcomes the eight domestic Chinese manufacturers to date that have signed CDMA intellectual
property research and development agreements, under which QUALCOMM will provide chipsets and system
software, and relevant documentation required for CDMA research and development. QUALCOMM will work
closely with these manufacturers to develop CDMA-based wireless communications technology for China. These
agreements allow the manufacturers to develop handset and base station prototypes based on IS-95 A/B and 1x
standards. The manufacturers have the option to secure commercial licenses at any time during the terms of their
R&D agreements. |
