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


To: Greg B. who wrote (15806)9/30/1998 4:06:00 PM
From: Ramus  Respond to of 152472
 
PR NewsWire
QUALCOMM Responds to ETSI on Third Generation
Technology Issues -QUALCOMM Outlines Three
Fairness Principles for Path to Converged Standard

-QUALCOMM Outlines Three Fairness Principles for Path to Converged Standard-

SAN DIEGO, Aug. 6 /PRNewswire/ -- QUALCOMM Incorporated (Nasdaq: QCOM)
today announced it has submitted a letter to the European Telecommunications
Standards Institute (ETSI) in response to ETSI's request for clarification of
QUALCOMM's licensing position with respect to QUALCOMM's essential
Intellectual Property Rights (IPR) for one of the proposals for Third
Generation (3G) digital wireless technology, Wideband CDMA (W-CDMA). In its
response dated August 5, QUALCOMM stated that it is "not prepared to grant
irrevocable licenses under IPRs on terms and conditions in accordance with
Clause 6.1 of the ETSI Interim IPR Policy." However, QUALCOMM says it
continues to work with ETSI and its members as well as other bodies worldwide
on convergence of cdma2000(TM), proposed by QUALCOMM and other members of the
CDMA Development Group, and W-CDMA.
In response to ETSI's demand that QUALCOMM state unconditionally whether
or not it is willing to grant licenses for the current form of the W-CDMA
proposal, QUALCOMM replied that it would not agree to license its IPR for the
W-CDMA standard. QUALCOMM has stated that it would license its CDMA IPR on
fair, reasonable and nondiscriminatory terms only for standards meeting a set
of technical criteria based on three fairness principles. These principles
support convergence of proposed 3G CDMA technologies that have been recently
submitted to the ITU for consideration as candidates for IMT-2000. The
fairness principles are:

1. A single, converged worldwide CDMA standard should be selected for 3G;
2. The converged CDMA standard must accommodate equally the two dominant
network standards in use today (IS-41 and GSM-MAP); and
3. Disputes on specific technological points should be resolved by
selecting the proposal that either is demonstrably superior in terms of
performance, features, or cost, or, in the case of alternatives with no
demonstrable material difference, the choice that is most compatible with
existing technology.

An overview of the technical criteria for the three fairness principles
follows.

1. Converged 3G CDMA Standard
A single, converged worldwide standard is the optimal solution for the
success of wireless communications services and products for tomorrow's
consumer market. cdma2000 and W-CDMA both utilize a CDMA wireless air
interface. A converged standard will help ensure a fair, competitive
environment for operators, manufacturers and consumers in all regions. To
date, no CDMA standard has been allowed for mobile service in Europe, and
multiple new CDMA standards, if licensed, might be used to discriminate
against some manufacturers and operators by the calculated adoption of one de
facto standard to the exclusion of other nominal standards.

2. Accommodation of the Dominant Network Standards
According to Dataquest, by the end of 1998, more than 100 million subscribers
worldwide will be served on IS-41-based networks as well as more than 100
million subscribers on GSM-MAP networks. The converged 3G standard should
accommodate both networks equally, thereby leveraging existing investments in
wireless systems around the world.

3. Selection of Superior CDMA 3G Technology
QUALCOMM supports a converged standard that achieves demonstrable performance,
cost and feature improvements. Where uncertainties exist as to material
improvements, QUALCOMM advocates open and thorough testing, including capacity
and quality testing. QUALCOMM sees no reason to support any standards
proposal that denies operators who recognized the superiority of the CDMA
wireless air interface earlier than others a simple evolutionary path to a
powerful CDMA-based 3G solution unless the non-evolutionary specifications of
such a standard offer demonstrable material improvements in performance.

"QUALCOMM remains committed to a vision of wireless telecommunications for
the next century that will fulfill the dream of high-quality global personal
communications for citizens of all regions," said Dr. Irwin M. Jacobs,
chairman and chief executive officer of QUALCOMM. "The selection of a CDMA
wireless air interface as the basis for new standards is a clear validation of
our original vision. Now our chief concern is ensuring continued high-quality
implementation of this technology for consumers, manufacturers, service
providers and governments alike. The three fairness principles provide the
roadmap to the fair and efficient implementation of the IMT-2000 process."
QUALCOMM expressed disappointment in the process by which ETSI selected
its single 3G standard. "To date, QUALCOMM has actively participated in the
ETSI process, and while ETSI has had every opportunity to evaluate cdma2000,
they have shown little interest in anything that differs from the single W-
CDMA proposal," said William Bold, vice president of government affairs for
QUALCOMM. "Serious talks are occurring around the world among standards
bodies on the topic of converging cdma2000 and W-CDMA for 3G. We regret that
to date, ETSI has chosen not to give serious attention to cdma2000 and to
convergence of the two proposals in its discussions with these other regional
standards bodies."
Headquartered in San Diego, QUALCOMM develops, manufactures, markets,
licenses and operates advanced communications systems and products based on
its proprietary digital wireless
technologies. The Company's primary product areas are the OmniTRACS(R) system
(a geostationary satellite-based, mobile communications system providing two-
way data and position reporting services), CDMA wireless communications
systems and products and, in conjunction with others, the development of the
Globalstar(TM) low-earth-orbit (LEO) satellite communications system. Other
Company products include the Eudora Pro(R) electronic mail software, ASIC
products, and communications equipment and systems for government and
commercial customers worldwide. For more information on QUALCOMM products and
technologies, please visit the Company's web site at qualcomm.com.
Except for the historical information contained herein, this news release
contains forward-looking statements that are subject to risks and
uncertainties, including timely product development, the Company's ability to
successfully manufacture significant quantities of CDMA or other equipment on
a timely and profitable basis and those related to performance guarantees,
change in economic conditions of the various markets the Company serves, as
well as the other risks detailed from time to time in the Company's SEC
reports, including the report on Form 10-K for the year ended September 28,
1997 and most recent Form 10-Q.
QUALCOMM, OmniTRACS and Eudora Pro are registered trademarks of QUALCOMM
Incorporated. Globalstar is a trademark of Loral QUALCOMM Satellite Services,
Incorporated. cdmaOne is a trademark of the CDMA Development Group. cdma2000
is a trademark of the Telecommunications Industry Association.



To: Greg B. who wrote (15806)10/1/1998 6:11:00 AM
From: Rajala  Read Replies (1) | Respond to of 152472
 
>Qualcomm is simply speaking softly and carrying one long bamboo
>stick.

Yes, I'm interested in that bamboo stick. Whoever said size does not matter was definitely not a Q investor talking about bamboo sticks.

>By the way, you never answered my question about the outcome of
>the rogue IPR working group meetings. If you were trading this >stock, I would expect that you would know the answer to at least
>part of that question. <gg>

Rogue IPR working group meetings? This is a hard one. Judging by the context the correct answer must be either:

a) Ericy acknowledges QCOM having full IPRs on GSM also
b) ETSI says QCOM has blocking patents on the new Euro currency
c) After careful re-evaluation it is realized that G* works with only two satellites
d) The entire world population gets excited about the new trumpet-size QCOM satellite phones

- rajala