QUALCOMM Weighs-In on Capital Hill Regarding Third
Generation Standards Debate
PR Newswire - June 04, 1998 12:35
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WASHINGTON, June 4 /PRNewswire/ -- QUALCOMM Incorporated (Nasdaq: QCOM) today
declared before the House of Representatives Science Subcommittee on Technology in
Washington, D.C. that all parties should work together toward a converged third generation (3G)
wireless technology standard. John Major, corporate executive vice president and president of the
Wireless Infrastructure Division of QUALCOMM, stated that the new third generation standards
should treat existing wireless network investments fairly while providing significant benefits for both
operators and consumers.
CdmaOne(TM), an American invention, is the fastest growing digital wireless standard in the world.
Less than three years after its first commercial deployment in Hong Kong, cdmaOne is the dominant
digital technology in the U.S., Korea and Mexico, and has been deployed throughout Canada, Asia,
Latin America, Africa, Russia, and Eastern Europe. Commercial launches are expected later this
year in Japan and Australia.
Along with the other CDMA equipment manufacturers, QUALCOMM has worked with the
CDMA Development Group (CDG) on a third generation version of cdmaOne that will be known
as cdma2000. cdma2000 has been submitted to various standards bodies around the world for
consideration and eventual standardization.
Major stressed that QUALCOMM executives are committed to the International
Telecommunications Union (ITU) process and will continue to work with all parties toward a
converged third generation standard that meets the above specifications. He noted, however, that
such an effort requires significant changes in the way the European Commission and the European
Telecommunications Standards Institute (ETSI) have approached the issue to date.
"We believe that standards and technology decisions should be made based on what is best for
customers and operators, not what is best for wireless manufacturers or governments," Major said.
"We believe in full and fair competition among technologies -- not in protectionism or in industrial
policy that places manufacturers ahead of consumers."
ETSI and others are promoting a W-CDMA standard that does not meet with the basic principles
espoused by Major during his testimony: a converged third generation standard that respects
existing second generation investments; allowing markets, not governments, to guide timing and
deployment of 3G services; and making decisions based on what is best for the customers and
operators. This variant of CDMA cannot deliver what it promises, and will only raise costs for
consumers. Major noted that the principles he outlined are consistent with the historical approach
taken by the Federal Communications Commission (FCC) in the United States on standards issues.
Perry LaForge, Executive Director of the CDG, issued a statement that echoed Mr. Major's
remarks. "The CDG has worked to establish strong relationships with standards bodies in Asia and
Europe. Our goal is the development of wireless standards that are beneficial to operators and
manufacturers around the world. Standards bodies in Asia have been very responsive to open
dialogue on this issue. The Europeans, in contrast, seem resistant to such a dialogue. We are
concerned that the European market will remain closed, as was the case with the GSM
second-generation standard, while other regions pursue a more open-market approach. We hope
that the European and ITU processes are open and equitable and that all regional standards bodies
will be willing to work toward a harmonized standard."
As a result of its early and unique leadership role in CDMA, QUALCOMM has an extensive
CDMA patent portfolio. It includes more than 130 CDMA patents issued, more than 400 patent
applications pending in the U.S. and around the world, and 55 licensed equipment manufacturers.
QUALCOMM has informed standards bodies that if the IMT-2000 CDMA standard meets certain
requirements and provides a reasonable level of compatibility with today's cdmaOne networks,
QUALCOMM will commit to widely license its essential patents for such standard on reasonable
terms and conditions free from unfair discrimination.
Headquartered in San Diego, QUALCOMM develops, manufactures, markets, licenses, and
operates advanced communications systems and products based on its proprietary digital wireless
technologies. The Company's primary product areas are the OmniTRACS(R) system (a
geostationary satellite-based, mobile communications system providing two-way data and position
reporting services), CDMA wireless communications systems and products and, in conjunction with
others, the development of the Globalstar low-earth-orbit (LEO) satellite communications system.
Other Company products include the Eudora Pro(R) electronic mail software, ASIC products and
communication equipment and systems for government and commercial customers worldwide. For
more information on QUALCOMM products and technologies, please visit the Company's web
site at qualcomm.com.
Except for the historical information contained herein, this news release contains forward looking
statements that are subject to risks and uncertainties, including timely product development, the
Company's ability to successfully manufacture significant quantities of CDMA or other equipment on
a timely and profitable basis and those related to performance guarantees, 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 28, 1997 and most recent Form 10-Q.
QUALCOMM, OmniTRACS and Eudora Pro are registered trademarks of QUALCOMM
Incorporated. Globalstar is a trademark of Loral QUALCOMM Satellite Services, Incorporated.
cdmaOne is a trademark of the CDMA Development Group.
SOURCE QUALCOMM Incorporated |
