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Technology Stocks : The New Qualcomm - a S&P500 company -- Ignore unavailable to you. Want to Upgrade?

To: brian h who wrote (6025)	2/1/2000 2:21:00 AM
From: brian h	Read Replies (1) \| Respond to of 13582

All, Mitsubishi Electric's Encryption Technology Adopted as W-CDMA Standard February 1, 2000 (TOKYO) -- Mitsubishi Electric Corp. said its "MISTY" encryption technology was adopted as a standard encryption method for the W-CDMA third-generation mobile communication system. The company said it is the first time for an encryption technology developed in Japan to be adopted as an international standard. MISTY was adopted by the "3GPP Third Generation Partnership Project" at 3gpp.org, which studies W-CDMA standards. SA-WG3, an encryption analyst group, reportedly studied various kinds of encryption technologies and selected MISTY as the one that satisfied the following conditions: (1) it can be incorporated in a phone as hardware, (2) its encryption algorithm is designed simpler and (3) from a security prospective, it is expected to have a life longer than 10 years. Mitsubishi Electric started MISTY's customization work for W-CDMA in July 1999, and completed its development before December 1999, after having security tests. The technology has been adopted using the name of "KASUMI." It is expected to be authorized as GPP's encryption standard in the first half of this year, and will be an ITU recommendation. MISTY is a public key encryption algorithm that Mitsubishi developed in 1995. It is a 64-bit block code that has a 128-bit encryption key. The company believes that MISTY's adoption was also supported for the following two reasons: the currently well-known deciphering methods cannot be applied to it, and it has kept a good track record as the company has already been providing security products using MISTY. Mitsubishi Electric explained about why MISTY was adopted, saying, "It can process at a data transfer speed as high as 2Mbps, be lightly packed in less than 10k gates and is designed for security, which is evaluated high." Being authorized as a W-CDMA standard, KASUMI is expected to be equipped in NTT DoCoMo Inc.'s W-CDMA-based cellular phone. It is also expected to be incorporated in W-CDMA-compliant cellular phones in various countries. Mitsubishi Electric is planning to develop business of as much as 10 billion yen through building electronic authentication systems and settlement systems using MISTY. (104.55 yen = US$1) As MISTY was adopted as a standard for the next generation mobile phones, the company will expand its revenues in these businesses. In addition, targeting other mobile phone makers, it is thinking of selling KASUMI development tools and LSIs for mobile phones that incorporate KASUMI. (BizTech News Dept.) Brian H.

To: brian h who wrote (6025)	2/1/2000 8:50:00 AM
From: brian h	Respond to of 13582

All, The following article highlights QCOM's ASICs and royalty strategy in China and the rest of the world. This moves will make Nokia and ERICY's to adopt QCOM' ASIC sooner rather than later. Another great move by Dr. J. and teams. China wants its own CDMA manufacturers. QCOM gives it to them by earning ASICs and royalty! (Hopefully. Our Congressmen do not have a problem with it) And I bet the Chinese are not buying 2 G stuffs. They want MSM 3000 and above. China Unicom can have a virtual 3 G CDMA network overnight. Tuesday February 1, 7:13 am Eastern Time ANALYSIS-Qualcomm China deal to open hardball market By Matt Pottinger BEIJING, Feb 1 (Reuters) - China's decision to soon build CDMA mobile phone networks through a deal with U.S.-based Qualcomm Inc (NasdaqNM:QCOM - news) has foreign equipment vendors like Motorola and Nortel salivating. But unlike the feast laid out when Beijing embraced the GSM mobile phone standard, this time there will be a new group of vendors crowding the table -- the Chinese themselves. Supplying GSM equipment earned billions of dollars for European and North American companies selling handsets, switches and base stations into the virgin market. It has taken Chinese companies years to make inroads into the market dominated by Nokia, Ericsson, Motorola and Siemens. Now they are better prepared, and regulation is in their favour. In 1998, Premier Zhu Rongji ordered an industry shift toward localisation. Local content requirements were phased in, forcing foreign companies to enter manufacturing joint ventures on Chinese soil. ``There were 30 million subscribers in China, and local content was a big 'zero',' said a senior executive with a foreign equipment vendor in Beijing, recalling the market figure just a few months ago. ``They will not repeat this mistake again.' GREAT DRAGON IS IN CONTENTION On Tuesday, an executive with China Unicom said the company had struck a preliminary agreement with Qualcomm on patents that paves the way for China to build a mobile phone network based on CDMA standards. Qualcomm owns most of the patents on the Code Division Multiple Access technology, and stands to make huge profits out of licencing royalties in China. China Unicom is the country's number to telephone company, and hopes to use the technology to compete against state giant China Telecom's GSM networks. Under current plans, the CDMA network would reach a subscriber capacity of 11 million by the end of the year. Foreign companies competing for meaty contracts will include Motorola (NYSE:MOT - news), Lucent Technologies (NYSE:LU - news) of the United States, Canada's Nortel Networks (Toronto:NT.TO - news), South Korea's Samsung and Sweden's Ericsson . But companies with names like Great Dragon, ZTE, Jinpeng Electronic Information Machine Co, and Datang Telecom will stand shoulder-to-shoulder with foreign firms in the bidding process. WINDOW OF OPPORTUNITY China currently has more than 40 million mobile phone subscribers, and the number is expected to hit 70 million later this year. Only two foreign companies have joint ventures licensed to make and sell CDMA equipment in China - Nortel and Motorola - while others have applied to license existing joint ventures. Industry executives said Unicom was expected to start putting out tenders for CDMA contracts as soon as March. All the contracts would be for locally-produced equipment priced in domestic yuan currency, shutting out pure imports. ``They're in the short-listing phase,' said one Motorola executive, who declined to be identified. Foreign ventures are hoping to win contracts early on, while Chinese firms are still learning the ropes. ``Initially, the bulk will go to the foreign joint ventures, because initially there is a learning curve,' said one foreign executive in Beijing. ``Unicom in one year is going to double the world CDMA population. No single supplier, probably not even two suppliers, could handle that,' he said. Jan Malm, Ericsson's executive vice president for China, said it would take time for Chinese firms to become competitive in the new market. ``They'll need to prove themselves,' he said. Brian H.