Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Qualcomm Moderated Thread - please read rules before posting -- Ignore unavailable to you. Want to Upgrade?

To: Ruffian who wrote (17989)	1/10/2002 4:30:44 PM
From: Sully-	Read Replies (2) \| Respond to of 197247

Nextel, Qualcomm, Motorola sign wireless deal CHICAGO, Jan 10 (Reuters) - Nextel Communications Inc. (NasdaqNM:NXTL - news) customers may soon be able to use the two way-radio feature on their cell phones to chat with colleagues around the world instead of just across the country. Nextel, the nation's fifth-largest wireless operator, and wireless technology firms Motorola Inc. (NYSE:MOT - news) and Qualcomm Inc. (NasdaqNM:QCOM - news) on Thursday said they agreed to develop a version of Nextel's proprietary feature based on Qualcomm's next-generation wireless network technology. The product would be available on a global basis. The agreement ensures that Nextel will be able to upgrade its networks with a global standard and still provide customers with its trademark two-way radio feature Direct Connect, which allows customers to communicate quickly with their co-workers. Qualcomm's technology is used by about 20 percent of the world compared to Nextel's network, which is unique. ``It will allow Nextel, when we make decisions about a move to a (next-generation) network, to have a Direct Connect capability,'' Elizabeth Brooks, spokeswoman for Nextel, said. It also expands the reach of Direct Connect beyond Nextel's network, letting Nextel customers talk on the two-way radio with more people. Specifically, Nextel said it signed a licensing agreement with Qualcomm to develop a Direct Connect product for Qualcomm's next-generation Code Division Multiple Access technology. The next-generation version called CDMA2000 allows wireless firms to offer high-speed always-on Internet access and high quality video and audio. The agreement would enhance a similar two-way radio product in development by Qualcomm called QChat. As part of the deal, wireless technology giant Motorola, which already makes Nextel's equipment, will integrate the infrastructure for CDMA networks and ensure that the CDMA version of Direct Connect will be compatible with Nextel's unique network. Nextel said the agreement grants it certain exclusive license rights in North America and several other international markets While Nextel has not officially announced its plans for upgrading its networks, analysts said Thursday's announcement opens the door for Nextel to transition to CDMA2000, a rumor that has been in the industry for nearly 18 months. ``The Direct Connect is a cornerstone of their proposition to its customers,'' Jane Zweig, chief executive of wireless consulting firm the Shosteck Group, said, adding that it would not make sense for Nextel to upgrade its networks without the Direct Connect capability. William Benton, wireless analyst with William Blair & Co., pointed out that while Thursday's announcement gives Nextel a possible path to upgrade its networks, it does not make it any easier or cheaper for the company to do so. A transition from one technology to another would be a costly project. Shares of Nextel rose 15 cents, or 1.5 percent, at $10.15 on Nasdaq in late afternoon trade. biz.yahoo.com