SpinCo Excerpts part 3(Final). Cooters
CDMA. CDMA technology, developed and patented by QUALCOMM, offers 10 to 20
times the capacity of analog systems and more than three times the capacity of
TDMA-based systems, through more efficient utilization of wireless operators'
licensed spectrum. Since its commercial introduction in late 1995, CDMA has
begun commercial service or is being deployed in more than 35 countries. Some of
the advantages of CDMA technology over both analog and TDMA-based technologies
include:
- ENHANCED VOICE QUALITY. CDMA technology provides significantly greater
voice quality than analog and other digital technologies.
- ENHANCED CALL SECURITY. CDMA transmissions are encrypted, making them
virtually impossible to decipher without having the appropriate code to
retrieve a transmission.
- INCREASED NETWORK CAPACITY. CDMA permits wireless networks to handle a
significantly greater number of calls than other digital technologies,
including TDMA, due in part to its efficient use of spectrum.
- FEWER DROPPED CALLS. While other digital technologies employ an abrupt
handoff of calls as the user travels between base stations or "cells,"
CDMA technology employs "soft handoffs," maintaining multiple connections
to base stations as a user travels between coverage areas.
- COMPATIBILITY WITH INTERNET PROTOCOLS. CDMA technology is more compatible
with Internet protocols than other digital technologies.
THIRD GENERATION TECHNOLOGY. As demand for wireless networks that carry
both data and voice traffic at faster speeds has increased significantly,
several 3G wireless standards have been proposed to the International
Telecommunications Union, the ITU, by a variety of companies and alliances.
These proposals include both CDMA and TDMA-based technologies. The ITU, based in
Geneva, Switzerland, is an international union that determines which technology
or technologies will be established as 3G standards. A technology standard
selected for 3G must efficiently support significantly increased data speeds and
capacity over limited spectrum bandwidth, thereby enabling new and enhanced
services and applications such as mobile e-commerce, position location and
mobile multimedia Web browsing, including music and video downloads.
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CDMA-BASED 3G TECHNOLOGY. A 3G standard encompassing three CDMA wireless
modes is in preparation for adoption by the ITU. These three modes are: (1) two
phases of cdma2000, or Multi-Carrier; (2) WCDMA, or Direct Spread; and (3) Time
Division Duplex. The two phases of cdma2000 are cdma2000 1x and cdma2000 3x.
cdma2000 1x utilizes the same standard 1.25 MHz channel bandwidth as existing
cdmaOne systems and, as a result, is compatible with wireless operators'
existing network equipment. We believe cdma2000 1x provides approximately twice
the voice capacity of cdmaOne and six to eight times that of TDMA-based
networks. Additionally, cdma2000 1x initially provides peak data rates of 144
Kbps, with growth to 384 Kbps planned, longer battery life and position location
functionality in compliance with FCC mandates for emergency 911 calls. One
wireless operator has announced its intention to introduce cdma2000 1x during
2000, and we expect widespread deployment among wireless operators upgrading
their cdmaOne networks in 2001, making cdma2000 1x the first 3G technology to be
commercially deployed. cdma2000 3x is designed to support peak data rates of up
to 2 Mbps.
In addition, QUALCOMM's High Data Rate technology, or 1xEV, is currently
being considered by the ITU for inclusion in the cdma2000 mode of the 3G
standard. 1xEV supports peak data rates of 2.4 Mbps per second and uses the same
standard 1.25 MHz channel bandwith as existing cdmaOne systems. As a result,
1xEV is compatible with wireless operators' existing cdmaOne network equipment.
Despite operating in the standard 1.25 MHz bandwidth, 1xEV supports higher data
rates than WCDMA, which uses the 5 MHz bandwidth.
THE SPINCO SOLUTION
We offer equipment manufacturers a full system solution, incorporating
integrated circuits, software, reference designs, features, tools, and technical
support. The key strengths of our solution are:
- THE INDUSTRY'S MOST ADVANCED CDMA SOLUTION. We have the most widely
utilized integrated circuits and system software solutions for the CDMA
marketplace. We believe this is due to our product leadership in terms of
component integration, low power usage, and broad feature sets. Our
solutions combine baseband integrated circuits with IF and RF
capabilities, proprietary software protocol stacks, and system design
tools. Our highly integrated, complete solutions deliver high
functionality in a cost-effective manner to wireless equipment
manufacturers. We incorporate many features in our solutions, including
leading technologies for position location, multimedia capabilities,
device connectivity, voice recognition and peripheral memory devices.
- A PRODUCT AND TECHNOLOGY ROADMAP TO ADDRESS THE EMERGING NEEDS OF THE
WIRELESS COMMUNICATIONS INDUSTRY. We have applied our capabilities and
experiences, along with our customer relationships, to develop a roadmap
for designing future integrated circuits and system software solutions
that will meet the requirements of next generation wireless
communications, specifically 3G. We are a leader in developing solutions
that meet the requirements of equipment manufacturers and wireless
carriers and help drive industry standards for the delivery of high-speed
wireless data access.
- A PROVEN TRACK RECORD OF SUCCESS IN THE WIRELESS SEMICONDUCTOR MARKET. We
provide the only CDMA-based integrated circuits and system software
solutions that have been successfully deployed in all CDMA marketplaces
worldwide. We have an established record of delivering on-time solutions
to our customers, thereby enabling them to meet critical time to market
requirements. We deliver to our worldwide customer base strong customer
service and the ability to deliver high-volume production of our
integrated circuits and system software solutions.
- A COMPLETE PROVIDER OF END-TO-END SOLUTIONS. We deliver leading integrated
circuits and system software solutions for both the wireless handset and
base station markets. This end-to-end capability enables us to understand
the complete market for wireless communications equipment and more rapidly
introduce new technological innovations to that market.
- THE WORLD'S MOST EXPERIENCED TEAM OF CDMA ENGINEERS. We have had a
continuous presence as a leader of the wireless communications industry
and have been a pioneer in the development and commercialization of CDMA.
Our team of engineers has been developing CDMA-based solutions for the
wireless communications industry for over ten years and continues to
enhance our existing technologies to meet the future requirements of the
industry.
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- A COMPREHENSIVE SUPPORT ORGANIZATION. We help significantly reduce our
customers' design cycles by providing assistance in the design and testing
of their products for full network compliance through a fully dedicated
customer support organization.
STRATEGY
Our objective is to extend our leadership position in providing integrated
circuits and system software solutions for the worldwide wireless communications
market. Key elements of our strategy include the following:
- EXTEND OUR LEADING POSITION AS A COMPLETE, END-TO-END CDMA SYSTEM
SOLUTIONS PROVIDER. We plan to invest heavily in research and development
initiatives focused on extending our leadership position in the market for
wireless communications products using CDMA technology. We have a broad
and unique expertise in designing and developing CDMA-based integrated
circuits, as well as the software, reference designs and tools and
providing technical support required to create a complete CDMA system
solution. We believe that our ability to deliver complete solutions to our
customers in both the handset and base station markets will strengthen our
competitive advantage over other providers of wireless communications
integrated circuits. We plan to further integrate additional components
and functionality into a single integrated circuit to help our customers
reduce product costs and size and to simplify customers' design processes.
In addition, we will continue to provide high quality support to enable
our customers to reduce their design cycles and meet their time to market
objectives.
- CAPITALIZE ON THE GROWING DEMAND FOR HIGH-SPEED WIRELESS DATA AND INTERNET
ACCESS. We intend to be the technology leader in the market for high-speed
wireless data and Internet access. We are devoting significant research
and development resources toward innovations in this area, including
efforts relating to the 3G standard and 1xEV. We believe that high-speed
data transmission offers significant growth opportunities in the wireless
industry, which will enable our customers to integrate new features such
as Internet access and advanced multimedia capabilities into new products.
We believe that we are the leading developer of solutions for this growing
market, evidenced by our field demonstrations of high-speed mobile data
capabilities.
- EXPAND THE CAPABILITIES AND REACH OF OUR WIRELESS COMMUNICATIONS
TECHNOLOGY. As new wireless communications standards and other
technologies emerge, we will continue to augment and broaden our existing
capabilities into additional wireless technologies and applications. We
are currently developing integrated circuit solutions that incorporate
multiple wireless operating standards, including multiple modes of 3G CDMA
and GSM, on a single integrated circuit. We also intend to enhance our
integrated circuits and system software by integrating new product
features, including position location, multimedia capabilities, device
connectivity, voice recognition, and peripheral memory devices. We intend
to continue to pursue acquisitions and strategic relationships with
companies that possess industry-leading capabilities in each of these
emerging areas. We intend to extend the reach of wireless technology with
our integrated circuits and system software solutions for new applications
such as wireless notebook computers, personal digital assistants, and
remote monitoring systems.
- CONTINUE TO DRIVE INDUSTRY STANDARDS FOR WIRELESS COMMUNICATIONS. We
intend to maintain our leading role in the formulation of standards for
the wireless communications industry. We believe that this provides us
with significant benefits, including accelerating and expanding the
development of markets for our products and services, encouraging market
participants to develop products and services based on a common set of
standards, and gaining valuable insight that allows us to be early to
market with products incorporating the latest wireless communications
standards. We will continue to develop integrated circuits and system
software that support the leading industry standards including both phases
of cdma2000, 1xEV and WCDMA, and promote technology innovations that will
help drive future industry standards. In
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addition, we intend to work closely with other leading industry
participants, including QUALCOMM, and government organizations to develop
these standards.
QUALCOMM has entered into royalty-bearing license arrangements with Intel,
LSI Logic Corporation, Philips and PrairieComm, Inc. covering specified patents
belonging to QUALCOMM applicable to integrated circuits. Pursuant to these
arrangements, QUALCOMM's licensees are licensed to manufacture and sell cdmaOne
and cdma2000 (and, in the case of Philips, WCDMA) integrated circuits to
subscriber licensees of QUALCOMM. To date, most of those licensees have elected
to purchase their CDMA integrated circuits and system software requirements from
us. Under the terms of their agreements with QUALCOMM, Motorola and Lucent also
have rights under specified QUALCOMM patents to manufacture and sell CDMA
integrated circuits to licensees that hold separate licenses under QUALCOMM
intellectual property rights incorporated in those chips. In every case, the
right of the licensees to use or resell the licensed integrated circuits is
subject to the payment of royalties to QUALCOMM on the products into which the
integrated circuits are incorporated. |
