Don, There are already agreements and licensees working on handsets. Handsets won't be an issue. For example: SAN DIEGO -Jan. 19, 1996 - QUALCOMM Incorporated (NASDAQ:QCOM) and Orbitel Mobile Communications Ltd.,
today announced that they have signed a worldwide multi-million dollar handset license agreement for QUALCOMM's Code
Division Multiple Access (CDMA) technology. The agreement allows Orbitel to design, develop, manufacture, and sell
handsets for use within the Globalstar Satellite System. Orbitel will also purchase certain QUALCOMM hardware and
software designs.
QUALCOMM and Orbitel have also signed a multi-million dollar development subcontract for Orbitel to design and
manufacture pre-production Globalstar handsets incorporating QUALCOMM's CDMA technology and Orbitel's Global
System for Mobile Communications (GSM) terrestrial-based technology and expertise.
"QUALCOMM is very pleased to have Orbitel as part of our Globalstar development team. Orbitel's extensive expertise as a
GSM handset manufacturer adds to the impressive list of world class manufacturers committed to Globalstar," said Jerry
Beckwith, president of QUALCOMM's Communications System Division. "QUALCOMM welcomes this opportunity to
license our CDMA technology to another European manufacturer."
Interestingly, Ericsson boss Ramqvist, who claims that CDMA is not going to succeed [though he has latterly modified that opinion to say CDMA won't get significant market share] has invested in Orbitel, so Ericsson obviously think that CDMA has a lot going for it.
No doubt Qualcomm Personal Electronics will also produce handsets. Efficiency is going to be vital in telecommunications, so CDMA is going to have the edge over other technologies. With satellites, efficiency will be even more important than land based systems, so Iridium is going to depend on there being a large market rather than being successfully competitive on a head to head battle with Globalstar. As the systems mature and markets stabilize, I believe the Iridium type system will go by the wayside as Globalstar succeeds in the competition.
I suspect that Loral Space will fund further development of Globalstar, diluting existing shareholders. Globalstar needs a couple of hundred million to complete development and then more for the second launching which I think will follow not far after completion of the first 48 satellites due to heavy customer demand. |
