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

To: slacker711 who wrote (23219)	5/30/2002 5:50:01 PM
From: Kent Rattey	Respond to of 196639

There was a huge test a few years ago, and TI is on board; SnapTrack Announces Leading GSM Carriers Prepare for Pan-European Tests of Wireless Location Technology Assisted GPS-Based Location System Phase II Trials to Demonstrate SMS, Seamless Roaming PARIS -- June 19, 2000 -- SnapTrack Inc., a wholly owned subsidiary of QUALCOMM Incorporated (Nasdaq: QCOM - news) and leader in wireless position location technology, today announced an international consortium of Global System for Mobile telecommunications (GSM) wireless carriers, handset suppliers, applications providers, infrastructure manufacturers and semiconductor manufacturers who are preparing to conduct an intensive evaluation of SnapTrack's breakthrough approach to wireless handset location technology. France Telecom Mobiles is hosting the multi-country SnapTrack location technology trials, as it is interested in deploying wireless location services and technologies. The trials will demonstrate SnapTrack's functionality in a broad range of call environments and its ability to provide seamless cross-border network-to-network roaming for location services. Prototype GSM handsets will be used by SnapTrack GSM Test Group members to also test Wireless Application Protocol (WAP) services augmentation and gateway compatibility, and the efficient exchange of location information between system elements via Short Message Service (SMS). "CMG Telecommunications' participation in the SnapTrack GSM Test Group field trials will allow us to gain valuable experience with wireless location technologies and services," said Peter Maathuis, Vice President Global Sales & Marketing of CMG Telecommunications. "CMG's expertise in wireless infrastructure systems, including SMS and WAP, will be central to the STGTG's trials, which will demonstrate CMG's commitment to providing its carrier customers with a package of highly accurate WAP-enabled wireless location systems." SnapTrack's Wireless Assisted Global Positioning System™ technology will enable a whole range of value-added location-based services for mobile subscribers and mobile internet users. Services include location-sensitive billing, mobile directory assistance, personal navigation, improved roadside assistance and enhanced vehicle fleet management. SnapTrack's responsiveness and accuracy will also enhance public safety for people placing emergency calls on their mobile phones. "The Phase I GSM Test Group trials demonstrated SnapTrack's ability to provide the highly accurate location information needed for the deployment of cost-effective commercial location services in typical urban European centres -- for both pedestrian and in-vehicle services," said Steve Poizner, CEO of SnapTrack. "The Phase II trials are expected to not only demonstrate SnapTrack's compatibility with SMS, but also that SnapTrack's enhanced GPS handset-based system is the only approach that can provide seamless cross-border and inter-network location services roaming. This simply cannot be done with any location system that requires network equipment modifications. The SnapTrack GSM Test Group Phase I trials in Madrid, Spain, successfully demonstrated near-commercial location services applications in the GSM environment, with callers typically pinpointed to within 5-20 meters. During the trials, mobile users were guided to featured points of interest and to hotels, ATMs, nightclubs and tourist attractions closest to their calling locations. Recent studies by Strategis Group indicate that the wireless location services market could generate as much as $20 to $30 billion per year in revenues for European carriers and vendors by 2005. The SnapTrack GSM Test Group consortium, formed more than a year ago, collectively supports over 30 million subscribers. Publicly disclosed members include Vodafone AirTouch Communications PLC (UK and US), BellSouth Mobility DCS (US), BT Cellnet (UK), Esat Digifone (Ireland), France Telecom (France), Omnitel Pronto Italia (Italy), T-Mobil (Germany), Telecel (Portugal) and Telefonica (Spain), and applications developer SignalSoft (UK and US). Prototype handsets will be provided to the consortium for the field trials. Infrastructure providers CMG Telecommunications (Holland), Nortel (France) and Siemens Information and Communication Networks (Germany) will participate in the trials, as will semiconductor manufacturers Texas Instruments and Motorola. Texas Instruments and Motorola have previously announced licensing agreements with SnapTrack. About SnapTrack's Technology SnapTrack's personal location technology fuses the intelligence and power of networks in the mobile environment with the accuracy and coverage of the Global Positioning System. SnapTrack's thin-client Wireless Assisted GPS system improves upon conventional GPS by combining information from GPS satellites and wireless networks to accurately and reliably pinpoint a wireless phone. While traditional GPS receivers may take several minutes to provide a location fix, SnapTrack's system generally locates callers within a few seconds. Callers are typically located to within 5-20 meters in a wide range of challenging call environments where normal GPS will not work, including inside houses and moving vehicles, under heavy foliage, and in downtown urban street canyons. SnapTrack's unique Location on Demand™ feature also ensures a caller's privacy, putting location information in the hands of the user, not the network. SnapTrack's technology products permit the design of cellular phones, pagers, PDAs, and other wireless devices that operate in multiple GPS navigation modes, allowing out-of-network location coverage and a variety of thin-client applications. SnapTrack's wireless location technology products require no additional cell sites or modifications to existing network equipment and are designed to have minimal impact on cost and handset form factor. Furthermore, SnapTrack's technology is air-interface neutral and is applicable in any two-way wireless system: cellular/PCS, satellite, or paging; 800/900 MHz or 1800/1900 MHz; GSM, CDMA, TDMA, PDC or 3G air interfaces. France Telecom is one of the world's leading telecommunications carriers, with 1999 consolidated operating revenues of 27.2 billion euros and operations in more than 75 countries. France Telecom provides businesses, consumers and other carriers with a complete portfolio of solutions that spans local, long-distance and international telephony, data, wireless, multimedia, Internet, cable TV, broadcast and value-added services. France Telecom has been listed on the New York Stock Exchanges and Paris Bourse since 1997. To cater to the needs of multinational customers, the Group invested in Global One, which is wholly owned by France Telecom since January 2000. With 1,400 points of presence worldwide, Global One offers seamless international voice and data services to over 30,000 businesses. CMG Telecommunications is the leading global supplier of messaging and Internet solutions for the wireless telecom industry. CMG develops high-end solutions in close co-operation with network operators. To date, more than 150 of these quality solutions have been delivered to over 75 operators worldwide. They are widely recognized to be the best around, combining minimum operator intervention with maximum performance and availability. The product portfolio includes the WAP Service Broker™, Mobile E-mail, Short Message Service Centre and the Cell Broadcast System. More information about CMG Telecommunications can be found on the Internet at www.cmgtelecom.com. CMG telecommunications is a division of CMG plc, a leading European IT services group, providing business information solutions around the world through consultancy, systems development, software applications and managed services. CMG was established in 1964 and nowadays employs around 9,000 employees. The Group is listed on the London and Amsterdam stock exchanges. Headquartered in San Jose, California, USA, SnapTrack is a wholly owned subsidiary of QUALCOMM Incorporated and is focused on integrating GPS and two-way wireless technologies. SnapTrack's patented architecture offers anytime, anywhere, accurate, high-speed location of a wireless caller, even inside buildings where conventional GPS does not operate. SnapTrack has agreements with Denso, Intel, Loc8.net/Glenayre, Microsoft, Motorola, NEC, NTT DoCoMo and Texas Instruments. SnapTrack's system has been commercially adopted by NTT DoCoMo, and is now on the market in Japan. For more information, please visit snaptrack.com. ---<snip>--- qualcomm.com

To: slacker711 who wrote (23219)	5/31/2002 8:53:52 AM
From: slacker711	Read Replies (2) \| Respond to of 196639

I wonder what the FCC will do if E-OTD fails completely. Can you imagine Cingular and AWE having to come to Qualcomm for the Snaptrack solution? ### ### WACHOVIA SECURITIES ### ### May 30, 2002 QCOM: Competing E911 Technology Fails FCC Test: Incrementally Positive Company Note QUALCOMM Incorporated (QCOM- Stock Rating: 1 Price: $31.18 Mark A. Roberts, 52-Wk. Rng.: $69-24 Michael Whitfield, Shares Out.:(MM) 809.6 Jason Kutsurelis Market Cap.:(MM) 25,243.3 EPS 2001A 2002E 2003E REV.2002 2003 FY(Sep.) Current Prior Current Prior Current Prior Q1(Dec.) $0.27 NC $0.24A NC $0.25 NC $692.7MM $770.0MM Q2(Mar.) 0.27 NC 0.20A NC 0.22 NC 659.2 709.3 Q3(June) 0.23 NC 0.23 NC 0.32 NC 699.0 884.3 Q4(Sep.) 0.20 NC 0.25 NC 0.39 NC 740.0 974.5 Full FY $0.98 NC $0.92 NC $1.17 NC $2,791.0MM $3,338.1MM FY P/E 31.8x 33.9x 26.6x Full CY $0.94 $0.92 $0.93 $1.26 NE NC CY P/E 33.2x 33.5x NM Source: Company data and Wachovia Securities estimates. NA = Not Available, NC = No Change; NE = No Estimate; NM = Not Meaningful Target Price: $63 LT Debt:(MM) $0.0 Float:(MM) 707.2 LT Debt/Total Cap.: 0.0% Avg. Daily Vol.: 13,201,000 ROE: 14% S&P 500: 1,064.66 3-5 Yr. Est. Grth. Rate: 23% Div./Yield: $0.00/0.0% CY2002Est. P/E-to-Grth.: 1.4x Key Points * Today it was reported that a competing technology to QUALCOMMs gpsOne wireless E911 system has failed to meet the FCC 100 yard minimum accuracy standard. * The technology called Enhanced Observed Time Difference Technology (EOTD) was developed by UK based Cambridge Positioning Systems (CPS) and is the technology of choice for AT&T Wireless, Cingular and VoiceStream. * We believe that QUALCOMMs E911 solution is the only system that met the standard and has been approved by the FCC. * CPS is expected to complete its final phase of FCC testing over the next two months. We believe a failure by EOTD would be incrementally positive for QUALCOMM. * We reiterate our Strong Buy rating on the shares. We continue to believe that QUALCOMM should be able to grow earnings at over twice the expected industry growth rate as carriers around the world continue to evolve toward 3G CDMA based technologies. Our $63 price target is based on our long-term CAPM. Investment Thesis We expect the growth in wireless communications technology to be well above that of the overall global GDP. Over the next 3-5 years, nearly all wireless mobile communications networks are likely going to transition to some form of CDMA technology, which should allow QUALCOMM to grow profits well above the growth rates for the overall wireless communications industry. Discussion Today it was reported that a competing technology to QUALCOMM's gpsOne wireless E911 system has failed to meet the FCC 100 yard minimum accuracy standard. The technology called Enhanced Observed Time Difference Technology (EOTD) was developed by UK based Cambridge Positioning Systems (CPS) and is the technology of choice for AT&T Wireless, Cingular and VoiceStream. QUALCOMM's gpsOne has been adopted by both Verizon and Sprint. Japan's KDDI is currently running a successful position location program on its CDMA network using gpsOne. EOTD uses a triangulation timing technique to derive the location of a handset. In an ideal scenario the time it takes for a signal from a Base Station (BTS) to reach a handset and a fixed known network location called a Location Measurement Unit (LMU) is recorded. The position is then triangulated by calculating the distance from three different locations using known time and signal velocity data. For accuracy, the handset must be within range of at least three BTSs. This becomes a problem in rural areas. CPS is currently trying to overcome this problem. We believe the only way to solve this issue would be to install more BTSs in rural areas. Or, for CPS to embrace a hybrid technology like QUALCOMM's gpsOne position location solution. When it works, a GPS only location system is highly accurate and provides 3D location - latitude, longitude, and altitude. It is extremely effective in rural areas. However, in a GPS only solution, it can take up to three minutes for a handset to calculate position. This is because the handset must first identify three separate GPS satellite signals. Then it must find a fourth satellite and decode timing synchronization data needed to make the time-distance calculation. GPS is based on line-of-sight and therefor it can be unreliable indoors or in dense urban areas. We believe that QUALCOMM's E911 solution is the only system that has met the standard and been approved by the FCC. QUALCOMM's gpsOne is a hybrid solution and utilizes the location capabilities of both the CDMA network and the GPS satellite system. The system first uses QUALCOMM's network cell-id capabilities to identify the location of the nearest BTS and in which sector the handset falls in. A CDMA cell is broken up into six sectors that radiate out from the BTS likes spokes on a wheel. This data is then fed into a system from a company called Snaptrack. The Snaptrack system tells the handset which three GPS satellites will likely provide the best signal. Then instead of having the handset search for and decode synchronization data from a fourth satellite this information is fed to the handset via the network. According to QUALCOMM, this effectively reduces the calculation time to around 20 seconds. Additionally, because of the cell-id assistance provided by the CDMA network, accurate position measurements in a city or indoors can be developed using one BTS and one GPS satellite. CPS is expected to complete its final phase of FCC testing over the next two months. We believe a failure by EOTD would be incrementally positive for QUALCOMM. We reiterate our Strong Buy rating on the shares. Our $63 price target is based on our long-term CAPM.