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InterDigital Communications Corporation,develops and markets advanced digital wireless telecommunications systems using
proprietary technologies for voice and data communications and has developed an extensive patent portfolio related to those technologies. The Company offers its customers, licensees and alliance
partners what it believes is unique access to both time division multiple access ("TDMA") and Broadband Code Division Multiple Access(TM) ("B-CDMA(TM)") proprietary digital wireless
technology.
The Company's principal product is the UltraPhone(R) system, a radio telephone system providing businesses and households access to basic telephone service through a wireless local loop. The UltraPhone system offers greater flexibility and ease of installation than conventional wireline-based systems and is designed to provide high transmission quality, capacity and spectrum efficiency. The UltraPhone system, which incorporates the Company's proprietary TDMA technology, is sold
predominantly to foreign telephone companies to provide basic telephone service to their customers, primarily in rural and near-urban areas, where the cost of, or time required for, installing, upgrading or maintaining conventional wireline telephone service supports selection of an UltraPhone system. Sales of UltraPhone systems accounted for approximately 40%, 20% and 47%, respectively, of the total revenues of the Company during 1994, 1995 and 1996. Through December 31, 1996, the Company has sold over 285 UltraPhone systems worldwide, with aggregate UltraPhone product revenue totaling over
$162 million.
The Company has also started to market its new TrueLink(TM) wireless local loop product based on the Company's proprietary B-CDMA technology. The Company expects field trials of the TrueLink product during 1997 with commercial deployment available in 1998.
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