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To: SKIP PAUL who wrote (89836)12/11/2000 1:21:38 AM
From: SKIP PAUL  Read Replies (1) | Respond to of 152472
 
interactive.wsj.com@1.cgi?paulskp/text/wsjie/data/SB976035841951860315.djm/&d2hconverter=display-d2h&NVP=&template=atlas-srch-searchrecent-nf.tmpl&form=atlas-srch-searchrecent-nf.html&from-and=AND&to-and=AND&sort=Article-Doc-Date+desc&qand=&bool_query=qualcomm&dbname=%26name1%3Ddbname%26name2%3Ddbname%26name3%3Ddbname%26period%3D%3A720&location=article&HI=

December 11, 2000

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Someone to Watch Over You
Do you really want your cell phone to tell the world where you are all the time?
By ALLANNA SULLIVAN

In many ways, it's a godsend: a phone that knows where you are at any time, and can direct you to the nearest store, restaurant, movie -- whatever you need. It's the ultimate in convenience, advocates say.

But others have a different name for it: stalker.

Privacy advocates say the ability to track users -- the crucial element for many visions of mobile commerce -- is the No. 1 privacy concern related to the growth of the wireless industry.

"This is as close as we've ever come to Big Brother," says Andrew Shen, policy analyst for the Electronic Privacy Information Center in Washington, D.C. "It creeps people out."

Wireless carriers and the tiny companies making up the fledgling wireless-location industry are hoping that phone customers won't have the same concerns as Mr. Shen. But however they feel, development of the technology will proceed, driven by a mandate from the Federal Communications Commission requiring wireless phone companies to be able to locate the origin of 911 calls by October of next year. Law-enforcement officials have been frustrated by 911 calls from cell phones because they frequently can't locate the caller -- something they have been able to do with wired phones for years.

Business Opportunity

Adding this location capability will cost at least $1 billion. So to help defray the added expense, the wireless industry is delving into a plethora of new location-based businesses, such as concierge-type services, directory and mapping services and tracking the movement of truck fleets. Right now, carriers can locate a cell-phone user to within a few miles. But by late next year, wireless carriers will be required by the FCC to pinpoint a caller's location within 50 to 100 meters, depending upon how they go about it.

Triangulation, one technique that will be used, locates callers by measuring how far they are from at least two or three communications towers, by tracking the length of time it takes for the signal to reach the different towers. Another technology matches patterns created as radio waves are emitted by cell phones and then bounce off buildings and other obstacles to a communications tower where the waves are matched against a database of thousands of pattern variations that can indicate the origin of a call.

A third technology, patented by SnapTrack Inc., a San Jose, Calif., subsidiary of Qualcomm Inc., San Diego, uses the global positioning system of 24 satellites that orbit the Earth -- the system originally set up solely for military use and still employed by the Pentagon to launch cruise missiles. A chip built into a cellular phone receives signals beamed down from at least one of the satellites, allowing the handset, in conjunction with a carrier's computer system, to analyze the caller's position.

The problem is that while these technologies will help you locate places more conveniently, they also will allow others to track you. SnapTrack Chief Executive Steve Poizner says even the most well-intentioned carrier can't always control disgruntled employees, overzealous police or even hackers who may misuse the location data. "All you need are a few incidents of misuse and the general public will be very upset," he says.

So far, though, only SnapTrack's technology is addressing this privacy concern, Mr. Poizner says. A feature on phones using his company's technology allows the caller to shut down the implanted chip, cutting off receipt of the satellite's signal, except when the user dials 911.

"Obviously, when someone punches in 911, they are giving permission to the police to track their whereabouts," Mr. Poizner says. "But otherwise, if that privacy button is shut down, it's not possible to be tracked."

Indeed, consumers should always be able to control who sees their location information, says Ben Linder, vice president of marketing for Openwave Systems Inc., a Redwood, Calif., designer of software for the wireless-carrier industry.

Mr. Linder adds that if users want to take the next technological step and receive services of value, they have to be willing to give up their privacy. But they also have to be able to believe that they can trust the carrier. A user will always have to give the carrier permission to release his location.

He believes that one way of controlling the use of location information may be to give permission for one transaction at a time. For instance, if a user wants to know about ski sales in a certain part of town, he gives permission for the carrier to provide vendors with his location only on that day.

People whose carriers use the network systems based on triangulation and pattern-matching, he adds, will have to depend on their carriers to protect their privacy. That's because carriers do the tracking, and users have no control over whether or not they are tracked unless they turn off the cell phone. Federal law prohibits a carrier from releasing the identity and location of a customer to a third party without permission.

Yet while there is a law banning the disclosure of such information, right now "there is no there is no technology to prevent a release," says Jason Catlett, president of Junkbusters Corp., a Green Brook, N.J., activist firm trying to preserve privacy on the Internet. He says there is always someone out there ready and willing to violate the law, and the assumption is that in some cases it will be violated.

Building a Profile

Mr. Catlett says that once location systems are up and running, location companies and carriers "will be able to build an enormous profile of a person's physical movements. And if you couple that with the browsing and purchasing profile Web sites, such as DoubleClick [Inc. of New York] or Amazon.com [Inc. of Seattle], already have, it could be an Orwellian nightmare."



To: SKIP PAUL who wrote (89836)12/11/2000 1:29:24 AM
From: Don Edgerton  Read Replies (2) | Respond to of 152472
 
Full IBD "story" referenced ear;ier:

Better Not Invite AT&T,
Qualcomm To Same Party
By Peter Benesh

Investor's Business Daily

It’s a tale of spin and outrage. Of accusation and denunciation. The election? Florida? No, this is a tale of two giants of the wireless world in a scrap that makes dimpled chads seem logical.

The feud pits AT&T Wireless against Qualcomm Corp. The truth is clouded by acronyms that swarm like insects. Analysts say the spat is not all that unusual, but that investors should be aware.

The row started with a Dec. 1 Qualcomm press release. It claimed that AT&T had "embraced" Qualcomm’s Code Division Multiple Access, a standard for transmitting data wirelessly. Qualcomm invented CDMA.

In its release, San Diego-based Qualcomm said it "applauded AT&T Wireless’ decision to embrace CDMA technology and deploy third-generation (3G) W (for Wideband) CDMA networks beginning in 2002, with rapid expansion thereafter."

The release then quoted Dr. Paul E. Jacobs, executive vice president of Qualcomm: "AT&T’s plans represent a long-awaited decision in favor of CDMA technology by another leading U.S. operator."

Qualcomm issued its praise for AT&T the day after AT&T made two big announcements that analysts took as bad news for Qualcomm.

First, Japan’s NTT DoCoMo bought 16% of AT&T Wireless. That deal gives AT&T access to Japan’s dominant wireless Internet technology, called i-mode. Some analysts say i-mode can become the global standard. Some 14 million Japanese surf the Web on cell phones that have i-mode technology.

Second, AT&T said it will upgrade its U.S. wireless network with GSM technology. GSM stands for Global System for Mobile communications. GSM is almost universal in Europe and Asia and far outpaces Qualcomm’s CDMA worldwide.

Hold the phone. With AT&T upping its GSM ante and joining forces with a non-CDMA partner, how could Qualcomm say that AT&T had embraced CDMA?"

In Seattle, AT&T Wireless brass got riled. AT&T spokesman Ken Woo denounced Qualcomm’s release as "spin." That was one of his polite words. He used other phrases that he later asked to rescind.

"The statements issued regarding AT&T Wireless’ technology choices are not correctly represented by the Qualcomm press release," Woo said, after cooling down.

Qualcomm, he says, doesn’t own WCDMA, and WCDMA isn’t the same as CDMA. The similar names are an "unfortunate choice of terms developed by the Asians and Europeans," he explained.

Woo says WCDMA is also known as UMTS, for Universal Mobile Telecommunications System. Though it’s confusing, WCDMA is seen as the world standard for the next generation of GSM. He says that as of September, "GSM has 311.2 million customers worldwide and TDMA has 65 million. (TDMA is another wireless standard for sending data and also is used by AT&T.) CDMA has only 57 million customers worldwide. I would say that is not a figure that dominates world technology."

To be clear, Woo added, "We are deploying Wideband CDMA, which is not related to CDMA."

Told of Woo’s reaction, did Qualcomm temper its claim of AT&T’s "embrace"? No.

"If they’re saying that, then they don’t understand what it is they’re deploying," said Steve Altman, an executive vice president at Qualcomm.

"WCDMA is CDMA," he said. "Our patents cover WCDMA absolutely, and we have more than 30 companies that signed WCDMA agreements with us and agreed to pay us royalties so long as they use any of our patents."

How does that translate into AT&T’s "embrace" of CDMA? Altman says it flows through AT&T purchases of WCDMA hardware from Qualcomm customers. He said, "The licenses that we’ve granted to these companies allow them to sell WCDMA equipment to AT&T and to other carriers around the world."

Does Qualcomm have a straight-line deal with AT&T? "We don’t have a contract with AT&T," Altman said. "We’re not saying AT&T’s going to pay us royalties."

He defended the press release. "It doesn’t say we have a contract," he said. "It says we’re thrilled that AT&T is going to go with CDMA, and that it benefits us because we’ve licensed 30 different companies to manufacture WCDMA."

Who’s right? Yeah, and who’s president-elect of the U.S.? Asked to play judge, Bill Plummer, Washington-based vice president of cell-phone maker Nokia Corp., backed AT&T.

"Wideband CDMA is not about Qualcomm," Plummer said. "It’s not a proprietary standard. Wideband CDMA is the product of an open process of standardization with a large number of contributors. It is an entirely different system."

But Qualcomm does have a claim, Plummer said, "to the extent that Qualcomm contributed to the development of that technology."

In the PR biz, timing is everything. Was Qualcomm trying to offset AT&T’s two big announcements? Could be, especially in light of comments by European Union Commissioner Erkki Liikanen. He called the AT&T deal with NTT DoCoMo "one of the most important decisions taken in years. We all know that as long as there is not one global (wireless) standard, there is not really global growth."

"Any time Qualcomm puts out a press release, you’re going to see a good amount of spin," said Larry Swayse, senior vice president of Allied Business Intelligence, a market research firm in Oyster Bay, N.Y. "Investors need to do a lot more homework, especially now, when there’s a lot of heat on most wireless companies to present themselves in the best possible light."

Then Swayse, who says his firm has worked for both companies, said more. He called Qualcomm "pretty much a company of patent lawyers. They may be confusing people who aren’t involved in the wireless industry intimately," he said.

He added, "Qualcomm is going to make some money off WCDMA, but they aren’t going to be as enhanced by AT&T Wireless as they would like people to think. They wanted to show the financial world they were still the king. And it may not be the case when you really dig down."

Swayse wasn’t alone in aiming tough words toward Qualcomm.

The San Diego company is known as "Spinco," said Bryan Prohm, an analyst with market researcher Gartner Dataquest in Raleigh-Durham, N.C. "To me, it was kind of a snow job press release," Prohm said.

He dismisses Qualcomm’s claim of WCDMA authorship. NTT DoCoMo "was really the progenitor of Wideband CDMA," he said. "Qualcomm is exploiting the fact that there’s CDMA in the acronym of a technology that AT&T will deploy."

And now, back to Florida.

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