Industry News

TRICOM Signs Contract With Motorola for 150,000 Lines CDMA Buildout; Announces Timetable for Deployment

SANTO DOMINGO, Dominican Republic, Aug. 18, 1998 -- TRICOM, S.A, a diversified telecommunications services provider, announced today the selection of Motorola, Inc.'s Cellular Infrastructure Group (CIG) as the infrastructure provider of CDMA (Wireless Local Loop) and PCS buildout plans. The four year contract provides for the installation of 150,000 wireless subscribers. The selection of Motorola CIG's WiLL(R) technology was the last step necessary in order for the Company to deploy the system.

The WiLL(R) system will accelerate penetration of the local access market in the Dominican Republic at significantly lower costs considerably increase its market share as it will now have the ability to provide telephony services to large areas, enabling it to use mass marketing techniques to target under served markets. There are currently approximately 750,000 local access lines in service in the Dominican Republic, representing a penetration rate of only 9 percent.

"Our goal in selecting to grow with the WLL technology is to offer our customers a reliable, cost effective product, substantially reducing the waiting period for a telephone line," said Arturo Pellerano, president and chief executive officer of TRICOM. "In the highly under served Dominican market, where only 9 out of every 100 persons have a home telephone, this should prove to be a strong catalyst for market growth and increased penetration."

CDMA technology uses codes to differentiate subscribers' phone conversations, allowing for the most efficient use of the radio spectrum, at the same time providing enhanced voice quality, comparable to traditional copper wire systems. Among the benefits of this technology are its ability to offer ubiquitous coverage, rapid installation, a scalable network with redeployable equipment, reduced maintenance costs, and mobility. "TRICOM has consistently been a leader in providing innovative services," said Woody Ritchey, vice president and general manager of Motorola CIG's Americas Cellular Infrastructure Group. "Motorola's CDMA WiLL(R) system provides a highly effective platform from TRICOM to quickly offer its customers high-quality digital services on a larger geographic scale than would otherwise be possible."

The Company expects to have its Wireless Local Loop in operation on a limited basis, in the capital city of Santo Domingo by the first quarter of 1999, and plans to expand into five other cities during the rest of 1999. The Company anticipates that the first phase of the Wireless buildout plan will be completed at a cost of US$12.6 million, and will deploy capacity to connect approximately 36,000 wireless subscribers by the end of 1999. Concurrently with the Wireless Local Loop service, the Company will be able to provide customers with a fully mobile PCS offering.

The costs to the Company of installing local access lines using WLL technology are estimated to be approximately 20% less than the costs of traditional copper line installation. Additional savings are also expected in the maintenance costs, as well as on the operational expenses required for installation and redeployment.

The total amount of the contract, US$52 million is considerably lower than was originally anticipated by the Company, and will be invested in equal parts, over the next four years. The deployment of the WLL is expected to take place in three stages over the same period. The first stage, covering 60 percent of the capital city of Santo Domingo, with a population of approximately 2.1 million, is approximately 1.1 million, should be operational by the end of the second quarter of 1999. (The third and final stage, to be implemented over the course of the following two years, will increase coverage to seven additional cities, at the same time increasing capacity in the staff training, and network testing. Motorola will also provide TRICOM with dedicated, in-country technical support and maintenance, and other services.

Vendor News

NEC DO BRASIL's CDMA Mobile Switching Center uses Multivendor IS-634 Interface

SÃO PAULO, BRAZIL, Aug. 31, 1998 -- NEC DO BRASIL announced its Multivendor Mobile Switching Center in order to add flexibility in CDMA network designing and deployment. It provides operators with the flexibility of choosing the network elements that best suit their needs.

"NEC DO BRASIL recognize the strategic advantages of utilizing open interface standards, such as IS-634, which give our customers the freedom to tailor products to their needs," comments Mr. William Nolasco Barreto, Director of the Wireless Business Unit. "NEC DO BRASIL puts great importance on meeting customers needs - that is why we are always deploying new complete wireless solutions."

NEC's MSC is based on the updated and modern NEAX61 Sigma platform. This platform offers many advantages as:

• high capacity call processing
• attends low and high traffic capacities
• supports IS-4TC protocol that provides digital services to users
• supports N7 signalling

"The application of Unix Operational System, C language and hierarchical software structure to NEC's MSC NEAX61 Sigma software offers to operators the advantage of fast and easy introduction of new services and facilities," comments Hans Claudio Emilio Colentani, Development Systems Manager, Wireless Business Unit.

NEC DO BRASIL Launches Its Newest CDMA BTS For Outdoor Environments

SÃO PAULO, BRAZIL, Aug. 31, 1998 -- NEC DO BRASIL introduces its newest BTS for CDMA Cellular System, the Outdoor Mini BTS, which will be displayed at the PCS' 98 Show at the Orange County Convention Center in Orlando on September 23-25, 1998, at booth #4751.

The newOutdoor Mini BTS is adding new features to NEC's complete BTS family. NEC's BTS family consists of: BTS (from one to four carriers), Mini BTS, Micro BTS and Pico BTS.

The new BTS is excellent for Outdoor environments with medium and low traffic capacities. Perfect for stadiums, shopping centers, highways, subway stations and tunnels, it can also be used in indoor environments where infrastructure (power supply, air conditioner, etc) is not available.

Its reduced-dimensions makes the Outdoor Mini BTS the best solution to increase cover capacity in a rapid and efficient way. A resistant frame gives this equipment compete winter-proof capability.

NEC's Outdoor Mini BTS features:

• Self-contained: a single cabinet contains all ancillary equipment (air conditioner, battery and transmission equipment)
• Saving of floor space (no space is required behind the BTS)
• Provides supplementary cover and traffic capacity mainly for Outdoor environments
• Compact size, light weight and low power consumption that makes it easier and faster to install
• Front access for easy maintenance and expansion
• Utilization of ATM interface between BSC and BTS

CDMA technology is growing fast around the world. In Latin America, NEC signed contracts to supply more than 1.8 million CDMA cellular digital lines in the States of São Paulo, Rio de Janeiro and Bahia. NEC DO BRASIL is using some Outdoor Mini BTSs in order to provide excellent services and coverage capacity to these operators and their users.

QUALCOMM Incorporated announced a signed contract with Shyam Telelink Limited to supply a turnkey cdmaOne™ (IS-95 Code Division Multiple Access) Wireless Local Loop (WLL) network to the Rajasthan region of India

SAN DIEGO, Aug. 26, 1998 -- QUALCOMM Incorporated announced a signed contract with Shyam Telelink Limited to supply a turnkey cdmaOne™ (IS-95 Code Division Multiple Access) Wireless Local Loop (WLL) network to the Rajasthan region of India. Shyam Telelink Limited is licensed to deploy an 800 MHz CDMA WLL system to provide much-needed telephone services to the region, where many customers are currently waiting for telephone service. Under the terms of the agreement, QUALCOMM will supply up to $45 million of CDMA infrastructure equipment, wireless telephones and deployment services.

"It is a landmark opportunity for QUALCOMM to participate in Shyam Telelink's project to increase teledensity and improve telecommunications for Rajasthan's 51 million people," said Marshall Towe, Jr., vice president for QUALCOMM's Wireless Infrastructure Division. "We share Telelink's vision of
accessible, high-quality, reliable and secure communications for each city, town and village in the region, and we look forward to working with Telelink's engineering teams to ensure a rapid and efficient network deployment."

Deployment of the network is expected to begin in the fourth quarter of 1998 in the city of Jaipur, with expansion into surrounding towns and villages expected shortly thereafter. The network is expected to serve over 23 urban areas within the first year of operation and to offer a combination of fixed and limited mobility services to subscribers.

"We selected QUALCOMM to deploy our CDMA network not only because they have already successfully demonstrated their CDMA WLL capabilities in India, but also because of their advanced CDMA products, technical expertise and deployment experience around the world," said Rajiv Mehrotra, chairman of Shyam Telelink Limited. "With CDMA, we will be able to provide wireline-quality telephone service to even the most remote areas of Rajasthan."

"In a region where significant subscriber growth is expected as soon as wireless telephone services become available, a CDMA network from the leading wireless local loop vendor -- QUALCOMM -- is the best choice for Telelink to meet capacity and quality requirements," said B.A. Majmudar, president of QUALCOMM's Wireless Infrastructure Operations in India. "We commend Telelink for its leadership in selecting QUALCOMM CDMA, and with this agreement, we renew our commitment to India and to providing the highest quality communications to our customers."

QUALCOMM will provide Shyam Telelink Limited with its 800 MHz QCell™ base stations, QCore™ switching and base station controller equipment, and wireless local loop telephones. The system will be designed using QUALCOMM's industry-leading network planning software tool, QEDesign(R). QUALCOMM will also provide a range of deployment services, including installation, commissioning and optimization.

QUALCOMM supplied and installed the first CDMAWLL network in India, a commercial system that has been serving New Delhi customers since May 1997. QUALCOMM has emerged as a leader in the WLL arena with deployments underway throughout Asia, Africa, the Commonwealth of Independent States and the Americas. As the pioneer of CDMA technology, QUALCOMM is able to design and manufacture products that optimize cdmaOne technology to its greatest potential, providing high-performance networks to operators all over the world.

Shyam Telelink Limited was incorporated in 1995 for the purpose of establishing and operating basic telephone services in India and was promoted by Shyam Telecom Limited.

QUALCOMM do Brasil Establishes New Factory to Manufacture QUALCOMM CDMA Digital Phones in Sao Paulo

Factory to Serve One of the Largest Wireless Markets in the World

SAO PAULO, BRAZIL, Aug. 18, 1998 -- QUALCOMM do Brasil, S. A., a subsidiary of QUALCOMM Incorporated (NASDAQ: QCOM), pioneer and world leader of Code Division Multiple Access (CDMA) digital wireless technology, today announced a new QUALCOMM phone manufacturing facility in Sao Paulo, Brazil, with initial manufacturing capacity of approximately 300,000 phones per year. QUALCOMM will continue to take the necessary steps to meet the needs of the Brazilian market, increasing manufacturing lines and capacity as market conditions warrant.

QUALCOMM do Brasil will commence production of QUALCOMM's advanced CDMA digital dual-mode Q phone in September with shipments of the new phones expected to begin in October of this year.

"Our local manufacturing operation represents our strong commitment to Brazilian carriers and consumers to support their tremendous demand for high-quality wireless phones," said Marco Aurelio Rodrigues, president of QUALCOMM do Brasil. "Serving one of the largest markets of wireless products in the world, QUALCOMM do Brasil looks forward to accelerating its production ramp to meet the increasing requirements of carriers in Brazil who seek to offer the exceptional voice quality and performance of QUALCOMM's CDMA digital technology and products to their customers."

Valerijonas Seivalos Jr., vice president, manufacturing operations of QUALCOMM do Brasil said, "QUALCOMM do Brasil is actively hiring a well-trained, highly motivated team of seasoned executives and a production staff with high-quality, high-volume manufacturing experience to ensure the greatest levels of manufacturing quality and output."

Nortel (Northern Telecom) Digital Wireless Equipment Receives Certification in Russia

MOSCOW, Aug. 18, 1998 -- Nortel (Northern Telcom) has received certification of its cdmaOne (IS-95 CDMA) and TDMA IS-136 infrastructure equipment for use in Russia. With certification of GSM equipment expected by year end, Nortel offers Russian wireless service operators a choice in state-of-the art digital solutions.

Russia's Ministry of Communications requires vendors importing or selling wireless networks in Russia to obtain equipment certification. This rigorous certification process includes testing at the manufacturer's facilities and in Russia. The Ministry of Communications tested Nortel equipment at facilities in the United States and Canada, and connected to the public switched telephone network in Russia.

Nortel's first commercial CDMA network in Russia, a system operated by JSC Electrosviaz in the Rostov region in Novocherkassk, is slated to offer service this month. Nortel's first two TDMA networks, operated by TechInfo Communications in Kransnodar and Sochi, were commercially launched in April.

"Nortel is in a strong position to provide operators in this country with the infrastructure they need to be successful in this growing market," said Glenn Blood, vice-president, sales, Wireless Networks, Nortel.

With more than 150 million residents, Russia covers 6.5 million square miles. Yet outside of major metropolitan areas, telephone density is still very low.

"Wireless communications is still in its infancy in Russia but is quickly maturing," said Alnoor Ebrahim, director, sales, Wireless Networks, Nortel. "The lack of basic wireline networks means there is a tremendous opportunity in coming years for Nortel to supply operators with the feature-rich systems and capabilities necessary in today's changing world."

Motorola CIG To Expand Latin America's Largest Commercial CDMA Digital Cellular Network

SÃO PAULO, Aug. 18, 1998 -- Motorola, Inc.'s Cellular Infrastructure Group (CIG) said today that telefonica del Peru has ordered the first phase of a CDMA digital cellular network expansion that will extend service beyond the capital city of Peru into the country's western provinces between its Pacific coast and the Andes mountains. CDMA stands for Code Division Multiple Access. The announcement was made here during the CDMA Latin American Forum.

The CDMA network expansion project, part of a $350 million, long-term build out program commissioned last year by Telefonica, will create new capacity for 300,000 subscribers in the cities of Arequipa, Trujillo, Cusco, Huancayo, Ica, Chiclayo, and Piura when completed in November. By the end of the year, telefonica estimates that it will have about 450,000 active subscribers, and it expects that number to grow to more than on million over the next five years.

Motorola CIG installed the first Latin American CDMA network in Lima, Peru's capital, as a trial in October 1996. In December 1996, with nearly 10,000 subscribers, CDMA commercial service was launched to begin overlaying an older, non-Motorola CIG analog cellular network. Since that time, the number of CDMA subscribers in Lima and the surrounding area has grown six-fold, to 60,000, while the number of analog customers is about 340,000.

"With the huge subscriber growth we are experiencing in Peru, CDMA technology is meeting our capacity requirements and allowing us to offer quality services beyond Lima to these important cities in the provinces," said Mr. Hugo Mendoza, mobile Services Vice President of Telefonica del Peru. "Being first in Peru's wireless market with CDMA technology has allowed us to differentiate Telefonica from our competitors by standing alone to provide subscribers with unparalleled quality," Mr. Mendoza added.

"In a matter of months Telefonica's subscribers in the provinces of Peru will be able to experience the many benefits of CDMA digital cellular services, including enhanced call quality and security, and improved coverage and capacity," said Woody Ritchey, vice president and general manager of Motorola CIG's Americas cellular Infrastructure Group.

Motorola CIG will install an array of large-capacity EMX(R) 5000 digital switches, mixed-mode digital cellular base stations, and CDMA and analog micro cell equipment to support the network expansion.

Brazil's GLOBALTELECOM Selects Motorola CIG for $220 Million Dual-Mode CDMA/Analog Network

SÃO PAULO, Aug. 18, 1998 -- Motorola, Inc.'s Cellular Infrastructure Group (CIG) announced today the signing of a $220 million contract with GLOBALTELECOM of Brazil for the supply of dual-mode CDMA (Code Division Multiple Access) and analog system and network infrastructure equipment throughout Region 5, a large southern section of the country.

The exclusive contract, which features Motorola CIG's locally manufactured SC™ family of base stations, calls for system implementation to begin immediately, with commercial operation scheduled for October. The initial contract period is five years.

Nearly 14 million people live in the region that will be served by the network. The region, considered Brazil's third most affluent, includes three major metropolitan areas centered in Curitiba, Blumenau
and Londrina, plus the resort cities of Florianapolis and Foz do Iguacu.

"Our decision to work with Motorola CIG was based on our confidence in CDMA technology and its unwavering acceptance by the broad marketplace," said GLOBALTELECOM CEO Francisco Loreiro.
"Motorola CIG's worldwide leadership in the CDMA and digital platforms was a vital factor in our decision-making process, along with a manufacturing capability that is based here in Brazil," Loreiro added.

"Motorola CIG is committed to supplying GLOBALTELECOM with the very best technology available in the world today," said Woody Ritchey, vice president and general manager of Motorola CIG's Americas Cellular Infrastructure Group. "We sincerely appreciate GLOBALTELECOM's confidence in our products, people and our unrelenting commitment to quality," he continued.

The network's architecture calls for deployment of Motorola CIG's series of EMX(R)5000 switches.

GLOBALTELECOM is a joint venture of the Brazilian groups Suzano and Inepar, the Japanese groups DDI and Nissho Iwai, and Motorola. Last April, when it won the concession for the Band B cellular license for the region of Parana and Santa Catarina, GLOBALTELECOM announced total investments of US$1.3 billion during the first five years and the creation of 2,000 direct and indirect positions.

QUALCOMM Enters Into CDMA Subscriber License Agreement With Taiwan-Based Acer Peripherals

SAN DIEGO, Aug. 13, 1998 -- QUALCOMM Incorporated today announced that it has entered into a worldwide Code Division Multiple Access (CDMA subscriber unit license agreement with Acer Peripherals, Inc. (API) headquartered in Taiwan, Republic of China. Acer Peripherals is the first Taiwan-based company to receive a CDMA license from QUALCOMM. Under terms of the multi-million dollar, royalty-bearing agreement, QUALCOMM has granted API a license to develop, manufacture and sell subsriber unit products for cdmaOne™ wireless applications, including cellular, Personal Communications Services (PCS) and wireless local loop, using QUALCOMM's proprietary CDMA technology and patents.

"Acer Peripherals is a leading manufacturer of computer peripherals, and communications and consumer electronic products with a worldwide network of manufacturing, sales and marketing operations," said Jerry Skiver, senior program manager in QUALCOMM's Techonology Transfer and Strategic Alliance Division. "They have gained international recognition with their participation in the wireless industry. As a result of API's extensive experience with other wireless technologies, we expect Acer Peripherals to make significant contributions in the rapidly expanding cdmaOne marketplace."

"We decided to license QUALCOMM's CDMA technology to expand our business scope and adapt to the most advanced wireless technology," said Calvin Chih general manager of the Communications Business Unite at Acer Peripherals. "API" expects to be a major provider of wireless handsets worldwide. We look forward to working closely with QUALCOMM and launching our first CDMA product in 1999."

U.S. Wireless Corporation and QUALCOMM Enter CDMA License Agreement

SAN RAMON, Calif., Aug. 13, 1998 -- U.S. Wireless Corporation announced today that it has signed a licensing agreement with QUALCOMM Incorporated, enabling U.S. Wireless to develop a Code Division Multiple Access (CDMA) version for the company's RadioCamera™ wireless caller-location system.

Under the agreement QUALCOMM will provide the CDMA technology, technical assistance, and access to components and equipment. The agreement also provides for a cross-license of each party's technology, subject to terms and conditions to be negotiated by parties, whereby U.S. Wireless would obtain a commercial license for wireless location systems and QUALCOMM a commercial license for integration within its CDMA infrastructure products.

Utilizing Location Fingerprint technology, the Radio Camera provides wireless caller location data that supports E-911 and other enhanced mobile services. The AMPS version of the RadioCamera is currently in beta trials with wireless carriers in Baltimore, Md.; Billings, Mont.; and Oakland, Calif.

Based on the licensing agreement and the support provided by QUALCOMM, U.S. Wireless plans to design and test a modified version of the RadioCamera to provide geolocation data for the IS-95 CDMA standard, to be ready for outdoor field trials by year end. The CDMA system developed by QUALCOMM is used by a vast number of cellular and PCS carriers in the United States, and is one of the fastest growing cellular standards being deployed today.

Dr. Oliver Hilsenralh president and CEO of U.S. Wireless, stated, "The agreement with QUALCOMM represents a significant step for our company. We intend to lead the industry in the integration of caller-location capability within cellular networks, thereby enabling E-911 and other value-added services. U.S. Wireless is positioning itself to be first in providing an all-inclusive system, offering wireless caller-location data for all cellular standards in this emerging market.

Handsets with DSP Communications' CDMA Baseband Chipsets Now Available in the Japanese Market; Consumers Experience DSPC Performance First-Hand

CUPERTINO, Calif., Aug. 3, 1998 -- DSP Communications, Inc. today announced that handset manufacturers employing DSPC's cdmaOne™ chipsets have begun volume shipments of CDMA handsets to Japanese carriers.

"DSPC has worked very closely with our customers during the entire development cycle to ensure that handsets implementing DSPC's CDMA chipset achieve performance exceeding the Japanese CDMA market requirements," said Arnon Kohavi, Vice President of Business Development for DSPC. "We believe our customers have achieved prime handset designs which will enable them to compete in all aspects including size, cost, and performance."

In the past, DSPC has announced several customers who began developing handsets for the Japanese market based upon DSPC's CDMA chipset. Recently, Kyocera announced that they will supply handsets to DDI, a Japanese carrier. On July 14, 1998, DDI became the first carrier in Japan to activate a CDMA network .

DSPC's D5400 family of CDMA chipsets offers an IS-95 compliant solution for complete baseband processing for cellular, PCS, and WLL terminals. Implementing three vocoders, including the 8 Kbps and 13 Kbps and EVRC, the chipset offers high voice quality to end-users. DSPC's low power consumption for CDMA and analog modes offers a clear advantage to handset manufacturers and consumers. Users enjoy the benefits of longer standby and talk times and lighter batteries. With
built-in flexibility for software modifications, the DSPC chipset may be easily modified or customized, giving manufacturers the ability to differentiate their handsets.