QUALCOMM Supports Global Deployment of 3G
CDMA
Wednesday July 12, 7:30 am Eastern Time
Company Press Release
QUALCOMM Supports Global Deployment of 3G
CDMA
QUALCOMM Benefits from Licensing and Chipset Sales for cdma2000 and WCDMA
SAN DIEGO--(BUSINESS WIRE)--July 12, 2000--QUALCOMM Incorporated (Nasdaq: QCOM - news), pioneer
and world leader of Code Division Multiple Access (CDMA) digital wireless technology, today issued the following
statement concerning the introduction of third-generation (3G) IMT-2000 wireless technology based on CDMA.
``QUALCOMM fully supports the rapid introduction of 3G CDMA technology, regardless of mode, in the new IMT-2000
frequency bands as well as in existing cellular and PCS frequency bands in all regions of the world,'' said Dr. Irwin Mark
Jacobs, chairman and CEO, QUALCOMM. ``By 2003, the Company expects one billion digital wireless subscribers in the
world, the majority using GSM with CDMA second. For the next billion subscribers, the Company expects CDMA to be
the dominant 3G standard. The principal 3G modes, WCDMA and cdma2000, incorporate QUALCOMM's pioneering
CDMA inventions, and are designed to provide efficient voice and wireless Internet access, which we believe will be the
next large growth area for wireless networks. Both CDMA modes represent revolutionary departures from the
TDMA-based technologies used over the past decade, including GSM.''
``The transition to 3G CDMA has now started in existing spectrum. Although technology choices for the IMT-2000
spectrum remain open, two of Korea's largest operators, SK Telecom and KT Freetel, are preparing to launch the world's
first commercial 3G services by using cdma2000 to upgrade their existing networks. By the end of 2001, 3G services will be
widely available, since most cdmaOne(TM) operators around the globe plan similar transitions to cdma2000 next year.
Given the anticipated growing demand for wireless Internet access, we expect that operators utilizing non-CDMA wireless
technologies will make substantial new investments in 3G CDMA over the next several years. cdma2000 readily supports
overlays in existing spectrum. For international roaming, phones supporting multiple technologies for operation in all regions
will become increasingly available at low cost. Several operators are conducting trials of QUALCOMM's HDR technology
which efficiently supports mobile and fixed Internet access up to 2.4 Mbps. HDR is now in the 3G standards process and
the basis for 1xEvolution (1xEV).''
``QUALCOMM continues to expand its substantial portfolio of CDMA patents, including many patents essential to the
deployment of any commercially viable CDMA mobile system. QUALCOMM has now extended many of its license
agreements to cover all 3G modes. Under these agreements, a licensee pays the same royalty rate to QUALCOMM for
WCDMA and cdma2000 equipment as for cdmaOne infrastructure, phones, semiconductors and other equipment.
Companies with licenses for WCDMA include Samsung, Lucent, Ericsson, Nortel, Hyundai, LG, Sony, Hitachi, ALPS,
Matsushita, Maxon, OKI and Philips.''
``Although we support all modes, QUALCOMM believes that cdma2000 provides a more capable, spectrally efficient,
timely, lower risk and lower cost path to all 3G services. Relatively small changes (i.e., chips and software upgrades) are
required to existing commercial infrastructure and subscriber equipment to incorporate cdma2000 technology, and the
chipsets are currently in the hands of manufacturers. Although QUALCOMM supports all modes of 3G CDMA, the
Company believes that carriers deploying cdma2000 technology have a major economic and time to market advantage over
carriers deploying WCDMA. Therefore, we will continue to examine opportunities to invest in carriers where the
competition has not elected to use cdma2000.''
``QUALCOMM supports both cdma2000 and WCDMA modes with chipsets and system software. The Company plans
to focus on multi-mode, multi-band, multi-network capabilities as these future market requirements develop. Drawing on
QUALCOMM's unequalled experience in supplying the highest quality and most reliable CDMA chipsets with extensive
features, the Company is now shipping cdma2000 chipsets to manufacturers and expects to begin sampling its WCDMA
chipsets and system software in 2001.''
QUALCOMM Incorporated (www.qualcomm.com) is a leader in developing and delivering innovative digital wireless
communications products and services based on the Company's CDMA digital technology. The Company's business areas
include integrated CDMA chipsets and system software; technology licensing; Eudora® email software for Windows® and
Macintosh® computing platforms; satellite-based systems including portions of the Globalstar(TM) system and wireless fleet
management systems, OmniTRACS® and OmniExpress(TM). QUALCOMM owns patents that are essential to all of the
CDMA wireless telecommunications standards that have been adopted or proposed for adoption by standards setting
bodies worldwide. QUALCOMM has licensed its essential CDMA patent portfolio to more than 75 telecommunications
equipment manufacturers worldwide. Headquartered in San Diego, Calif., QUALCOMM is included in the S&P 500 Index
and is a 2000 FORTUNE 500® company traded on The Nasdaq Stock Market® under the ticker symbol QCOM.
Except for the historical information contained herein, this news release contains forward-looking statements that are subject
to risks and uncertainties, the Company's ability to successfully design and have manufactured significant quantities of
CDMA components on a timely and profitable basis, the extent and speed to which CDMA is deployed, change in
economic conditions of the various markets the Company serves, as well as the other risks detailed from time to time in the
Company's SEC reports, including the report on Form 10-K for the year ended September 26, 1999, and most recent
Form 10-Q.
QUALCOMM, OmniTRACS and Eudora are registered trademarks and OmniExpress is a trademark of QUALCOMM
Incorporated. Globalstar is a trademark of Loral QUALCOMM Satellite Services, Incorporated. cdmaOne is a trademark
of the CDMA Development Group. All other trademarks are the property of their respective owners. |
