Fun reading from Raging Bull:
By: justgold
Reply To: None
Thursday, 13 Jan 2000 at 3:49 PM EST
Post # of 39412
READ THIS ALL IDC's
InterDigital?s contract with Nokia (NYSE:NOK) to design a new high data-rate
technology for third generation (3G) and fourth generation (4G) applications is the
company?s most recent strategic engineering relationship. Management says it is
working to broaden this revenue stream by forming similar relationships with others
in the industry.
IDC is making available to telecom equipment manufacturers its expertise in the
highly sophisticated designing of their next generation products. Their new devices
will demand the broadband architecture that IDC specializes in for maximum
wireless data transmission.
Even the world's largest producer of cell phones needs InterDigital?s expertise.
Nokia is paying IDC $40 million (in addition to $30 million -- and probably far more
--- in royalties/licensing fees) for access to IDC?s seasoned broadband-focused
engineering division for Nokia?s new product development. The InterDigital/Nokia
relationship involves a multiyear development of technology components for use in
next generation wireless projects. InterDigital?s role is to design and develop
technology building blocks to be used in third and fourth generation applications.
Nokia will fund the project ($40 million committed to IDC so far), maintain an active
role in the development plan, and when the development is complete, be able to
use the technology in its innovative new products. One of the most promising
engineering breakthroughs is InterDigital?s unique work in delivering TDD (Time
Division Duplexing), solving the dilemma of compatibility between second and third
generation applications. (See: "Third Generation Standards for Wireless")
InterDigital will OWN the technology it develops and will have the ability to license
that technology to other companies, as well as design, manufacture, sell and use
products and components that utilize the technology Nokia is paying for. This
development relationship is expected to generate a recurring revenue stream for
InterDigital (See Nokia's New Strategic Partner, Telecom Technology for
Non-Techies and Technology Risks)
Next generation mobile telecom systems will provide subscribers with a wide
variety of uses, including Internet, high-speed multimedia and other services
currently available only from wireline telephone systems.
One of the most daunting challenges facing manufacturers who design and
produce next generation wireless data communications products is ensuring that
their new products function well in the third and fourth generation environment and
that they have a way to demonstrate their product to potential customers. Most
manufacturers will be struggling to find ways to be sure that their products will work
as expected ? and be absolutely compatible with all other manufacturers? next
generation wideband CDMA products.
A means of testing will also be required to evaluate and demonstrate compatibility
of new products to second generation TDMA and GSM networks. For example, the
"packet switched" data transmitted in the third generation networks will have to be
compatible with the "circuit switched" voice and data transmitted in current
networks.
The testing of new products could be extremely costly because the manufacturer is
lacks wideband CDMA know-how (even Nokia recognizes the indeed to quickly get
up to speed in wideband CDMA technology).
InterDigital is moving quickly to meet what will soon be a crucial need for wideband
CDMA testing systems that evaluate the air interface technology of next generation
telecom products. Playing to its recognized strengths, InterDigital's new focus is on
providing the data communication industry with absolutely first-class consultation
services in the fastest-growing segment of the industry. |
