SAN DIEGO--(BUSINESS WIRE)--June 9, 2000--QUALCOMM Incorporated (Nasdaq:QCOM - news), pioneer
and world leader in the development and deployment of Code Division Multiple Access (CDMA) digital wireless
technology, today announced that it has been awarded a $125 million ``Auction Discount Voucher'' (ADV) by the Federal
Communications Commission (FCC). According to the Commission, QUALCOMM may use the ADV in any FCC
spectrum auction, for one or more licenses over a period of up to three years. Fully transferable, the ADV may be used in
whole or in part by any entity in any auction, including those in which QUALCOMM is not a participant.
``QUALCOMM is very pleased to be recognized in this way for its pioneering innovation and leadership in the
development and deployment of CDMA digital wireless technology,'' stated Dr. Irwin Mark Jacobs, chairman and CEO of
QUALCOMM. ``CDMA is now being adopted worldwide for third-generation voice and wireless Internet access. Our
latest evolution uses standard 1x (1.25 MHz) bandwidth to provide the highest efficiency and greatest Internet data rates
entering commercial service this year and next, with a wider bandwidth (5 MHz) being introduced perhaps a year or two
later, which may evolve to provide competitive performance.''
The FCC award is in response to a July 1999 U.S. Court of Appeals decision in which the FCC was ordered to designate
QUALCOMM a ``pioneer'' under the Commission's Pioneer's Preference program, and grant QUALCOMM spectrum
forthwith. Under the Pioneer's Preference program, the FCC awarded grants of spectrum to technology innovators to
promote the rapid development and deployment of new services to consumers. In 1992, QUALCOMM was denied a
pioneer designation for its development of CDMA technology, and challenged the decision in the U.S. Court of Appeals
until it finally prevailed in 1999.
To date, the other technologies recognized as ``pioneering'' by the FCC in 1992 have seen only limited deployment. On the
other hand, QUALCOMM's technology is used by nearly 60 million subscribers and QUALCOMM has licensed its
essential CDMA patent portfolio to more than 75 telecommunications equipment manufacturers worldwide.
Two preliminary auctions, one in the 700 MHz band and one for licenses reclaimed from former C-block license holders,
have been scheduled by the FCC over the next several months. QUALCOMM is currently exploring opportunities to
participate in these auctions, on its own or through a partnership or consortium with other parties. |
