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Core Technology and Product Development
Through 1999, the Company was engaged in the development, marketing, sales and servicing of WLL equipment utilizing our technology. We redirected our business plan in 1999. Driven by the emergence of the 3G market, intensified product and price competition in the WLL market, and a significant decline in demand worldwide for WLL systems, we sought to enter into arrangements with key equipment providers involving 3G technology and products. The proposed 3G technologies incorporated wideband CDMA protocols as well as other CDMA and TDMA technologies. A significant part of our business activity involves the development of core technology building blocks for the two aspects of the wideband CDMA protocol: Time Division Duplex (TDD) and Frequency Division Duplex (FDD) technologies. Executing on our business plan, we entered into a strategic engineering relationship with Nokia in 1999 involving the development of high data-rate 3G technology. In 1999, we also initiated a self-funded research and development effort to develop building blocks for other components of the wideband CDMA protocols included in the 3G Standard.
The TDD format operates by using a single frequency band to transmit signals alternately in the forward and reverse direction. In the TDD scheme, the relative capacity of the forward and reverse links can be altered in favor of one direction (usually the forward). This is accomplished by giving a greater time allocation to forward transmission intervals than reverse by allocating more time slots. This asymmetry is useful for communication processes characterized by unbalanced information flow. One important example of this technique is Internet access in which users typically enter short messages and receive large information payloads. Importantly, due to the fact that only one carrier is used, frequency re-use is enhanced and planning is simplified.
FDD supports two-way radio communication using paired radio frequencies. In the FDD format, one frequency supports transmission from a base station to a mobile terminal (the forward link) while the other frequency supports transmission in the reverse direction. Because of the paired frequencies, simultaneous communication in both directions is possible. This technique is ideal for high volume mobile voice traffic and is the traditional cellular and PCS radio spectrum allocation format. It is designed to be extremely flexible, providing high-quality voice transmission, along with high speed wireless Internet access and multimedia imaging.
Based on these core technology building blocks, we intend to develop 3G products for sale to telecommunications equipment manufacturers. Those products could include ASICs, software and combined RF/Baseband boards, among others. Our business plan is to develop such products either alone or through partnering relationships with appropriate companies. We expect to also seek to license the technology to third parties on a royalty-bearing basis. (See "- Patent and Technology Licensing".)
We are currently targeting a TDD ASIC, as well as dual and tri-mode ASICs incorporating TDD functionality. The initial ASICs would be targeted for mobile handsets; however, we may also extend our TDD ASIC offering to the infrastructure market segment.
We are also currently developing our next generation FDD system-on-a-chip. Our engineering team is developing the technology for a system-on-a-chip solution, including the complex software and specifications for the manufacture of ASICs which can be embedded into a range of wireless products. The initial target product for the FDD ASIC will be mobile handsets. The FDD development effort was initiated in 1999 following the completion of our second generation FDD system-on-a-chip (which we called our B-CDMA ASIC), developed in conjunction with Texas Instruments, Inc. The B-CDMA ASIC was designed for fixed wireless access products but employs FDD, TDD and wideband-CDMA technology components. The B-CDMA ASIC has been fabricated and successfully tested. This experience provides us with an important first step toward developing a commercial FDD system-on-a-chip solution since the B-CDMA ASIC already contains a significant percentage of the technology building blocks that will be used to design our new FDD ASIC.
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