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Technology Stocks : Qualcomm Incorporated (QCOM) -- Ignore unavailable to you. Want to Upgrade?

To: waverider who wrote (73436)	6/6/2000 10:30:00 PM
From: taylorfife	Read Replies (1) \| Respond to of 152472

Interview with Qualcomm's Christine Trimble: The CDMA saga continues: Qualcomm ready to play Paul Mooney in Hong Kong ChinaOnline (Editor?s note: The following is taken from an e-mail interview with Christine Trimble, senior manager, Qualcomm Communications) ChinaOnline: Has China Unicom informed Qualcomm that it won't be installing the narrow-band code division multiplex access (CDMA) technology as previously agreed in the February agreement? Why the conflicting statements last week? Christine Trimble: Qualcomm is engaged in discussion with China Unicom and manufacturers regarding the deployment of CDMA in China. We're encouraged by these discussions and are hopeful that CDMA will be deployed soon. We are working with several Chinese manufacturers to position them for early entry into CDMA2000 (also referred to as 1x) infrastructure and handset manufacturing. The agreement signed in February with China Unicom covers CDMAOne (existing CDMA) and CDMA2000. COL: Is it correct to say that the current narrow-band CDMA is not upgradeable to the wide band and that China would have to completely change systems again within two to three years when CDMA 2000 comes out? Trimble: No. Existing CDMAOne operators can easily upgrade their current systems to support CDMA2000. CDMA2000 can be deployed by adding channel cards to existing CDMAOne base stations. CDMA2000 offers forward and backward compatibility with CDMAOne. CDMA2000 handsets will be backward compatible with CDMAOne networks, and CDMAOne handsets will be forward compatible on CDMA2000 networks. Qualcomm believes that CDMA2000 will be the world's first commercial third-generation technology with initial deployments to begin before the end of the year and commercial operations by all CDMAOne operators worldwide during 2001. Qualcomm is now supplying CDMA2000 3G chip samples and software to licensed CDMA infrastructure and subscriber manufacturers worldwide, and trials and first calls are being conducted. Several CDMAOne operators have publicly stated their intent to support CDMA2000 by next year (i.e., Sprint PCS, Verizon, SK Telecom). The CDMA Development Group's Web site, www.cdg.org, is a good source for updates on CDMA2000 progress. COL: If you own the bulk of CDMA2000 technology, does it matter if China does not use the current technology? China is saying Qualcomm will be a winner down the road when CDMA2000 is put into operation. What's your reaction to this? Trimble: The agreement with China Unicom covers CDMAOne and CDMA2000. As part of Qualcomm's licensing agreements, licensees of CDMAOne will pay the same royalty for 3G systems, including W-CDMA and CDMA2000. Qualcomm has more than 75 licensees for CDMA. Over one dozen of these companies have already extended their licenses for 3G applications, including W-CDMA and CDMA2000. We're pleased that the third generation of wireless communications is based on CDMA. Qualcomm has a substantial portfolio of CDMA patents, including an extensive number of "essential" patents that are necessary for the deployment of any commercially viable current- and future-generation CDMA system independent of bandwidth. COL: If the Chinese are now saying the narrow-band CDMA is not a feasible investment as it will soon be out of date, why did they sign the royalty agreement with you earlier this year? Telecoms analysts were critical of the deal back then, and I find it difficult to believe that the Chinese did not know then what they know now. Trimble: The agreement with China Unicom covers CDMAOne and CDMA2000. As explained above, existing CDMAOne operators can easily upgrade their current systems to support CDMA2000, which we expect to be the world's first commercial third-generation technology. Because of its high-spectral efficiency and limited bandwidth requirement, both CDMAOne and non-CDMAOne operators can easily transition to CDMA2000, achieving increased network capacity, higher quality and the ability to offer high-speed wireless Internet access while supporting existing and new users. COL: Qualcomm apparently lobbied hard for passage of permanent normal trade relations (PNTR) for China. Do you think China used Qualcomm to get World Trade Organization accession and PNTR status in the United States.? Trimble: It's not clear how external political factors with PNTR and WTO may have impacted the deployment of CDMA. We believe that PNTR status sets a positive tone and is reflective of the new atmosphere of openness and increased U.S./China cooperation.