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Technology Stocks : Interdigital Communication(IDCC) -- Ignore unavailable to you. Want to Upgrade?

To: Jim Lurgio who wrote (3367)	1/13/2000 3:58:00 PM
From: Manx	Read Replies (2) \| Respond to of 5195

Fun reading from Raging Bull: By: justgold Reply To: None Thursday, 13 Jan 2000 at 3:49 PM EST Post # of 39412 READ THIS ALL IDC's InterDigital?s contract with Nokia (NYSE:NOK) to design a new high data-rate technology for third generation (3G) and fourth generation (4G) applications is the company?s most recent strategic engineering relationship. Management says it is working to broaden this revenue stream by forming similar relationships with others in the industry. IDC is making available to telecom equipment manufacturers its expertise in the highly sophisticated designing of their next generation products. Their new devices will demand the broadband architecture that IDC specializes in for maximum wireless data transmission. Even the world's largest producer of cell phones needs InterDigital?s expertise. Nokia is paying IDC $40 million (in addition to $30 million -- and probably far more --- in royalties/licensing fees) for access to IDC?s seasoned broadband-focused engineering division for Nokia?s new product development. The InterDigital/Nokia relationship involves a multiyear development of technology components for use in next generation wireless projects. InterDigital?s role is to design and develop technology building blocks to be used in third and fourth generation applications. Nokia will fund the project ($40 million committed to IDC so far), maintain an active role in the development plan, and when the development is complete, be able to use the technology in its innovative new products. One of the most promising engineering breakthroughs is InterDigital?s unique work in delivering TDD (Time Division Duplexing), solving the dilemma of compatibility between second and third generation applications. (See: "Third Generation Standards for Wireless") InterDigital will OWN the technology it develops and will have the ability to license that technology to other companies, as well as design, manufacture, sell and use products and components that utilize the technology Nokia is paying for. This development relationship is expected to generate a recurring revenue stream for InterDigital (See Nokia's New Strategic Partner, Telecom Technology for Non-Techies and Technology Risks) Next generation mobile telecom systems will provide subscribers with a wide variety of uses, including Internet, high-speed multimedia and other services currently available only from wireline telephone systems. One of the most daunting challenges facing manufacturers who design and produce next generation wireless data communications products is ensuring that their new products function well in the third and fourth generation environment and that they have a way to demonstrate their product to potential customers. Most manufacturers will be struggling to find ways to be sure that their products will work as expected ? and be absolutely compatible with all other manufacturers? next generation wideband CDMA products. A means of testing will also be required to evaluate and demonstrate compatibility of new products to second generation TDMA and GSM networks. For example, the "packet switched" data transmitted in the third generation networks will have to be compatible with the "circuit switched" voice and data transmitted in current networks. The testing of new products could be extremely costly because the manufacturer is lacks wideband CDMA know-how (even Nokia recognizes the indeed to quickly get up to speed in wideband CDMA technology). InterDigital is moving quickly to meet what will soon be a crucial need for wideband CDMA testing systems that evaluate the air interface technology of next generation telecom products. Playing to its recognized strengths, InterDigital's new focus is on providing the data communication industry with absolutely first-class consultation services in the fastest-growing segment of the industry.