Terms & ConditionsSite SponsorsContact UsSite Map
CDMA Technology
Members Sign-In
Latest News
June 1998
 Industry News  Vendor News

Industry News

Research Firm Thinks CDMA May surpass GSM As Wireless Standard

NEW YORK - CDMA, or code division multiple access, may surpass GSM, or global system for mobile communications, within fve years to become the most popular format for digital wireless telecommunications systems, market-research firm Phillips Business Information Inc. said Tuesday.

Potomac, Md.-based Phillips said CDMA is positioned to become the leading format, which should help Motorola Inc. and other companies that have spent heavily on CDMA.

The European Union's decision in the late 1980s to adopt the GSM standard helped European companies get a jump on the rest of the world. In current digital-cellular networks, especially in areas outside the U.S., GSM is the most popular format.

Top of Page

Sprint PCS Announces Contract With Lucent Technologies To Expand Nation's Largest Nationwide PCS Wireless Network in New And Existing Cities Expects to Spend Up To $700 Million

Kansas City, Me., Jun. 18, 1998 -- Sprint PCS today announce it expect to spend up to $700 million over the next three years with Lucent Technologies to supply equipment and services for the next phase of its nationwide wireless network development and expansion. The contract is to addition an existing $1.8 billion contract already spent with Lucent in the first phase of Sprint PC's national roll-out of it's 100-percent digital 100-percent PCS nation PCS nationwide wireless networks.

"We continue to aggressively build and expand the all-digital, Sprint PCS nationwide network on a massive scale," said Sprint PCS Chief Executive Officer Andrew Sukawaty. "The capital investment we've announced today is another illustration of our goal to offer consumers and businesses throughout the United States the clarity, coverage and value of the nation's only 100 percent digital nationwide PCS network. In fact, just last week we announced our first affiliation agreements to quickly bring sprint PCS service to a number of key mid-size cities and we're nearing the launch phase of the 'D' and 'E' band PCS license cities held by Sprint Corporation. The promise of a seamless, nationwide PCS network under one brand is now reality."

Under the new contract, Sprint PCS will expand PCS coverage areas in cities throughout the United States. This includes the expansion of coverage areas in current Sprint PCS markets and the building of new networks in markets not currently served by Sprint PCS, including Las Vegas, Nev.; Riverside, Calif.' Southern New Jersey (including Atlantic City); Colorado Springs, Vail, and the Summit County ski areas in Colorado.

Similar to its first agreement with Sprint PCS, Lucent will supply and install CDMA (Code Division Multiple Access) network infrastructure equipment and services including base stations, switches, software and professional services.

"Our network is among the largest and most sophisticated wireless PCS networks in the world." said Keith Paglusch, senior vice president of Technical Services and Network Operations for Sprint PCS. "Over the past three years, we've worked with many partners to build our network. We look forward to working with Lucent in the future to continue to enhance the reach of Sprint PCS and the technical advances of our network."

Nina Aversano, president of Lucent's Global Commercial Markets business said: "Lucent continues to be proud of the work we've done on behalf of Sprint PCS and we appreciate the opportunity to continue working with he company as it increases its coverage. Spring PCS choice at Lucent is a continued vote of confidence in our products and our people and we look forward to working with Sprint PCS and expanding our relationship."

Top of Page

Japanese Carriers Say CDMA Quality Up

Results of a survey conducted by Japan's DDI and Nippon Ido Tsushin following a test of cdmaOne technology revealed that subscribers liked the wireless service better than wireline offerings as far as voice quality service July 14. The carriers surveyed some 1,400 subscribers, nearly 100% of whom said they liked the cdmaOne phones better than other cellular handhelds.

Top of Page

Singapore's Mobile One Launches CDMA Network

Singapore mobile telephony operator Mobile One has launched a new PCS (personal communications service) mobile network, the company's second, based on CDMA (code division multiple access) 1900 technology. The service is being positioned as a low cost alternative to the existing GSM (global system for mobile communications) network and offers savings of up to 55 percent off current call charges.

Pricing for the new service is simple, with a single plan available. The Chat 188 plan combines a monthly charge of S$18 ($10) with per minute call charges of 18 cents (10 cents US) during peak hours and 8 cents (5 cents US) off peak. Compared with Mobile One's GSM lifestyle service, the monthly charge is 40 percent lower and peak time charges are 55 percent lower.

Top of Page

MT&T Mobility, Nortel (Northern Telecom) Bring CDMA Service to Nova Scotia

HALIFAX, NOVA Scotia, Jun. 2, 1998 -- MT&T Mobility announced today it is investing Cdn $18 million to provide digital service to Nova Scotia customers using advanced CDMA (Code Division Multiple Access) technology. In a deal valued at Cdn $13.5 million, Nortel (Northern Telecom) will provide MT&T Mobility with base stations and switching equipment for the network. MT&T Mobility's digital service will be available in the metropolitan Halifax area as of June 2, 1998, and is the first carrier to bring CDMA to Atlantic Canada

"The launch of digital cellular service means we have yet another addition to our extensive family of wireless communications solutions," said Wendy Paquette, President and C.O.O. of MT&T Mobility. "Our goal is to continue to build the suite of services we can offer our customers, making sure we can effectively meet their individual needs."

"We've invested a lot of time and effort assess all available digital technologies," added Paquette. "We're confident we've chosen the technology that best suits the needs of Nova Scotian businesses and consumers. CDMA technology is the most widely used in North America and delivers significantly enhanced voice quality and coverage relative to its competitors."

The introduction of digital service will provide coverage to more than 50 percent of cellular users in Nova Scotia. In the second half of 1998 and 1999, MT&T Mobility will continue to expand the digital network to provide customers with the best overall coverage in the province.

CDMA provides wireless subscribers with increased battery life, improved voice quality and advanced capabilities such as Call Privacy, Call Display, Visual Call Waiting and Visual Message Waiting. New services such as the delivery of text messaging and e-mail direct to a customer's digital phone will be developed.

"MT&T Mobility is taking the lead in bringing its customers the latest in wireless technology for its digital service," said Joe Sarnecki, vice-president, Sales and Marketing, Wireless Networks, Canada, Mobility with additional capacity as it continues to expand its customer base."

MT&T Mobility, the leading wireless service provider in Nova Scotia, serves more than 100,000 cellular and paging customers. MT&T Mobility is a separate, wholly owned subsidiary of Maritime Telegraph and Telephone Company Limited, and is Nova Scotia's leading providers of wireless mobile voice and data communications, through cellular, paging and private radio systems.

Top of Page

Vendor News

Lucent Technologies Announces First Phase of Commercial 3rd Generation Wireless Systems

Bell Labs enhancements of current cdmaOne systems to roll out in 1999

Singapore - Lucent Technologies today announced that its commercial cdmaOne wireless networks will deliver twice their current voice capacity and support data services envisioned under the International Telecommunications Union's IMT-2000 blueprint for third generation ("3G") wireless systems.

Lucent's Wireless Networks Group, told reporters attending the CDMA World Congress: "By next year, we will begin the phased commercialization of our first CDMA 3G systems with enhanced high speed radios based on new Bell Laboratories innovations. And, as promised when we announced the FLEXENT ™ architecture, the upgrades will maintain compatibility with the existing base of cdmaOne network equipment."

Mr. Erickson said that Bell Labs engineers have pioneered modifications to current generation CDMA technology to improve performance in an effort to begin a phased commercial implementation toward the goals outlined in the ITU's third generation wireless system performance criteria. A combination of improved modulation, coding, power control and error correction techniques effectively doubles the voice capacity of cdmaOne systems and supports IMT-2000 compatible data services like Internet access. Moreover, the improvements prolong battery life for new handset designs.

"This will be the first commercialization of 3G technology within live, revenue-generating networks, not experimental prototypes," he said. "It requires no network overlays, preserves existing base station investments, and best of all, allows network operators to simultaneously support current-generation and next generation subscribers."

Network operators will maintain all the inherent benefits of cdmaOne technology such as soft-handoff while introducing the improved transmission capabilities for those customers who require them. Also, he said, the two-fold increase in voice capacity improves the economics of cdmaOne technology, enabling carriers to more cost-effectively support both mobile and fixed loop services from the same network. "Lucent is a leading global provider of CDMA systems with more than 100 networks either in commercial service or under deployment," Mr. Erickson noted. "Moreover, we have installed all kinds of spread spectrum systems for fixed and mobile applications. With this real-world experience, and the networking skills of Bell Labs behind us, we have the credentials to lead the industry in spread spectrum technologies that will be employed in third generation systems. We are committed to supporting all of our customers as they plan to address the ever-increasing demands for capacity, data and multimedia applications, as well as the improved performance required for next generation systems."

Top of Page

Motorola Wins $21 Million to Deploy CDMA Digital Cellular Network in Bangladesh

SINGAPORE, Jun. 24, 1998
-- Motorola, Inc.'s Cellular Infrastructure Group (CIG) today announced it has been awarded an initial $21 million contract from Pacific Bangladesh Telecom Ltd.(PBTL) to install a Code Division Multiple Access (CDMA) digital cellular network in Dhaka and Chittagong, Bangladesh. The announcement was made during the 1998 CDMA World Congress, the industry's annual conclave being held here this week.

In the city of Dhaka, the CDMA system will provide service to 50,000 subscribers and will operate in tandem with the 25,000 subscriber Motorola CIG supplied analog cellular network. In Chittagong, the existing analog cellular phone system will be replaced and as many as 50,000 subscribers will be served by the newly installed digital Motorola CIG CDMA cellular network.

Mr. M. Morshed Khan, chairman, Pacific Group of companies said, "CDMA, the state-of-the-art cellular technology, has become an effective and popular digital standard worldwide owing to its superior voice quality. Our intent has always been to bring the best services and technology to our customers. After a thorough evaluation, we selected Motorola CIG to deploy this cellular system for us. We are committed to offering quality products to our customers and Motorola CIG was the clear choice in meeting our product and technology objectives. Though the first phase of deployment will cover only Dhaka and Chittagong, we plan to go beyond these two cities and achieve a country-wide rollout in the near future."

Motorola CIG will install its digital SC™2450 base station product which supports multiple air interfaces for versatile modular growth. Installation of Motorola CIG's 800 MHz CDMA infrastructure equipment is scheduled to begin in July 1998.

"We are pleased to have been selected to install PBTL's CDMA cellular network in Bangladesh," said Anders Gustafsson, executive director and general manager of Motorola CIG's European Cellular Infrastructure Group, India. "We believe CDMA is the right choice to help PBTL meet its customer objectives and we look forward to working
with PBTL in deploying their CDMA network."

Pacific Bangladesh Telecom Limited (PBTL) the pioneer in cellular technology in Bangladesh has been operating an analog cellular network in Bangladesh since 1993. PBTL has a program for expansion of services to cover all of Bangladesh and ultimately it has planned for international roaming through satellite.

PBTL believes the ultimate goal of any wireless communications system is to have broadband data transmission capacity. The proposed narrowband CDMA system will provide a smoother migration to future Third Generation cellular broadband applications, PBTL said.

Top of Page

New Nortel (Northern Telecom) CDMA Base Station Allows Wireless Operators to Easitly Add Coverage, Capacity

Singapore - Wireless service providers face a number of challenges to running successful and profitable networks, including extension of coverage in rural areas and along highways, and capacity and coverage enhancements in urban and metropolitan areas.

A new Nortel (Northern Telecom) CDMA base station introduced today at the Third Annual CDMA World Congress addresses these challenges.

"This new base station provides CDMA operators with a quick, flexible and cost-effective way to meet a wide variety of coverage and capacity requirements," said Richard Lowe, vice-president and general manager, CDMA Wireless Networks, Nortel.

The latest addition to Nortel's comprehensive CDMA portfolio, the Nortel CDMA Minicell allows wireless operators to tailor their networks to keep pace with the needs of an ever-growing subscriber base while keeping network expansion costs under control.

Offering transmit power among the highest available today, it offers a large cell radius for rural and highway applications, reducing the number of cell sites required to provide coverage in a given area. For in-building and high traffic needs, its unique software control feature allows operators to reduce power output.

With a modular design that connects the digital enclosure and the radio module via fiber, the Nortel CDMA Minicell enables the radios to be located closer tot he antennas. This virtually eliminates signal loss, and provides unparalleled flexibility to address complex siting issues with deployment options such a poles, walls, closets and basements.

Top of Page

Lucent Technologies announces first phase of commercial 3rd generation wireless systems; Bell Labs enhancements of current cdmaOne™ systems to roll out in 1999

Singapore - Lucent Technologies today announced that its commercial cdmaOne wireless networks will deliver twice their current voice capacity and support data services envisioned under the International Telecommunications Union's IMT-2000 blueprint for third generation ("3G") wireless systems.

Lucent's Wireless Networks Group, told reporters attending the CDMA World Congress: "By next year, we will begin the phased commercialization of our first CDMA 3G systems with enhanced high speed radios based on new Bell Laboratories innovations. And, as promised when we announced the FLEXENT™ architecture, the upgrades will maintain compatibility with the existing base of cdmaOne network equipment."

Mr. Erickson said that Bell Labs engineers have pioneered modifications to current generation CDMA technology to improve performance in an effort to begin a phased commercial implementation toward the goals outlined in the ITU's third generation wireless system performance criteria. A combination of improved modulation, coding, power control and error correction techniques effectively doubles the voice capacity of cdmaOne systems and supports IMT-2000 compatible data services like Internet access. Moreover, the improvements prolong battery life for new handset designs.

"This will be the first commercialization of 3G technology within live, revenue-generating networks, not experimental prototypes," he said. "It requires no network overlays, preserves existing base station investments, and best of all, allows network operators to simultaneously support current-generation and next generation subscribers."

Network operators will maintain all the inherent benefits of cdmaOne technology such as soft-handoff while introducing the improved transmission capabilities for those customers who require them. Also, he said, the two-fold increase in voice capacity improves the economics of cdmaOne technology, enabling carriers to more cost-effectively support both mobile and fixed loop services from the same network.

"Lucent is a leading global provider of CDMA systems with more than 100 networks either in commercial service or under deployment," Mr. Erickson noted. "Moreover, we have installed all kinds of spread spectrum systems for fixed and mobile applications. With this real-world experience, and the networking skills of Bell Labs behind us, we have the credentials to lead the industry in spread spectrum technologies that will be employed in third generation systems. We are committed to supporting all of our customers as they plan to address the ever-increasing demands for capacity, data and multimedia applications, as well as the improved performance required for next generation systems."

Top of Page

Lucent Announces Upgrade of CDMA System

SINGAPORE, Jun. 23, 1998 --Lucent Technologies said on Tuesday that its research and development arm, Bell Labs, has developed enhacements to its commercial cdmaOne wireless network.

Lucent said the enhancements would enable cdmaOne to deliver twice the current voice capacity and support data services envisioned under the International Telecommunications Union's IMT-200 blueprint for third generation wireless systems.

"By next year, we will begin the phased commercialisation of our first CDMA 3G systems with enhanced high speed radios based on the new Bell Laboratories innovations," said Scott Erickson, Asia-Pacific vice president for Lucent's Wireless Networks Group.

Erickson told reporters at the CDMA World Congress in Singapore that the upgrades would be compatibile with the existing cdmaOne network.

Top of Page

Samsung Electronics Opens Chinese CDMA Market : Begins First Commercial Service in China

Mobile communications system goes on-line June 16.

SEOUL, Korea, Jun. 17, 1998 -– Samsung Electronics Co., Ltd., Over the past year, Samsung Electronics Co. successfully carried out test operation of a CDMA wireless communications system in the Shanghai area. On June 16, Samsung Electronics and Shanghai Great Wall Mobile Communications Co. Ltd. held a ceremony to mark the beginning of commercial wireless CDMA service. Over 250 people related to the telecommunications field were present at the ceremony, including Ministry of Post & Telecommunications Bureau Deputy Chief, Lixiuchuan, Shanghai Great Wall Director General, Qingnian Wang, Samsung Electronics Information & Communications Division President, Hee-Joon Park and Samsung Electronics China Headquarters Vice-president, Myung-sup Sohn.

Samsung Electronics was selected as the official supplier of CDMA equipment to Shanghai in June 1997. After that, Samsung Electronics carried out a turnkey project with Shanghai Great Wall involving one switching station with a 68,000-line capacity, sixty-seven base stations and support services. After a year of testing, Great Wall approved the system for reliability and safety, allowing commercial service to begin.

During the testing phase, Samsung Electronics supplied 3,000 CDMA handsets, which were given a high quality rating. Great Wall plans to extend its commercial CDMA service to twelve provinces (Shandong, Jiangsu, Zhejiang, etc.) in the second half of this year, solidifying its position as China’s leading CDMA service provider.

In 1996 the Chinese government held a tender for supplying wireless CDMA systems in the cities of Beijing, Shanghai, Guangzhou, and Xian as part of a project to modernized the nation’s telecommunications infrastructure. Different companies were selected for each city and each company carried out a test system for one year.

Among the four test projects, Samsung Electronics was the largest, and Shanghai has the greatest growth potential. Samsung Electronics’ technology was rated highly and the company received notification of its being selected in March of last year.

Samsung Electronics has already established a joint venture company in Shanghai to market wireless local loops. The company is now focusing on expanding its presence in this market by selling PCS handsets, asynchronous transfer mode switching systems and other hardware there.

Top of Page

VLSI Enters CDMA Market With The Most Highly Integrated, Single-Chip Solution Available

A Major Step Towards IMT2000 Solution

SAN JOSE, Calif., Jun. 15, 1998 -- VLSI Technology, Inc. today announced that it is shipping to customers samples of its single-chip CDMA dual-core baseband solution, the market's most highly integrated CDMA product available. VLSI's CDMA+ provides a complete, verified and supported package including the low cost, low power consuming CDMA+ Processor 100 chip, software, and debug tools. This comprehensive package simplifies mobile phone development, provides quick time to market and reduces development cost and risk.

CDMA+ joins GSM and DECT as products built on VLSI's ViA Standard Communication Platform, giving handset manufacturers a single platform solution for all major wireless standards as well as future 3rd generation standards.

Much More Than a Chip

"With the introduction of CDMA+, the market finally has an alternative CDMA solution that provides the highest integration at a low cost," said Rich Beyer, president and COO of VLSI Technology. "CDMA+ is much more than a chip, it's all of the baseband elements needed to develop a wireless phone included in one package. This means the customer can focus on bringing highly differentiated products quickly to market instead of developing all the components themselves."

Leading Wireless Chip Provider

CDMA+ was built on VLSI's success in the GSM and ASIC markets and is the latest innovation in a long series of global wireless products. VLSI is the first vendor to offer both GSM and CDMA products, reinforcing VLSI's position as a leading wireless chip provider. This also uniquely positions VLSI to address the emerging third generation IMT-2000 standard that combines CDMA and GSM technology.

"With the introduction of CDMA+, VLSI continues to leverage its large investment and expertise in the wireless market to broaden its product portfolio and help customers succeed in the market place with customized silicon/software solutions " added Thierry Laurent, senior vice president and general manager of VLSI's Communications Product Group. "CDMA+ allows handset manufacturers to efficiently address multiple markets due to the high reusability of the platform approach, an essential competitive advantage for market success "

CDMA+ Key Features

Single chip solution: Integrates ARM, Oak+, peripherals, Audio Codec, CDMA/AMPS modem, QCELP and EVRC vocoders. ·

Low power consumption: Utilizes low-power silicon cores and extensive power management features.

High-performance CPU: ARM processor supports current and future customer application demands

Downloadable DSP firmware: Customers can easily customize chip operation and add features such as noise/echo cancellation and voice recognition.

CDMA and AMPS call processing stacks: Highly structured CPU software is easily integrated, maintained, and customized.
Comprehensive Tool Support: Supported by VLSI's integrated Jumpstart ARM/Oak debug tool and CDMA/AMPS system debug tools.

Creative Systems Solution (CSyS) Support: Additional system support is available from CSyS, a VLSI subsidiary

Dot Wireless Support: Dot Wireless offers additional application software and a transceiver reference design.

A Unique, Universal Development System

CDMA+ was built using VLSI's unique ViA Standard Communication Platform, an integrated, universal wireless development foundation that allows customers to develop products for multiple markets based on a common architecture and tools environment. ViA is comprised of proven building blocks that include VLSI-enhanced embeddable ARM and DSP cores, Functional System Blocks such as I/Os, caches, interrupt controllers and UARTs analog cells and DSP firmware. ViA also includes integrated ARM and DSP software tools.

As a result, CDMA+ features an easily customizable architecture that allows high-volume mobile phone manufacturers to quickly differentiate products based on a common architecture and tools environment, enabling faster product development and migration.

Available NOW

Samples of the CDMA+ Solution are currently available, with volume production expected in Q1, 1999.

Top of Page

QUALCOMM Weighs-In on Capitol Hill Regarding Third Generation Standards Debate

WASHINGTON, Jun. 4, 1998 -- QUALCOMM Incorporated today declared before the House of Representatives Science Subcommittee on Technology in Washington, D.C. that all parties should work together toward a converged third generation (3G) wireless technology standard. John Major, corporate executive vice president and president of the Wireless Infrastructure Division of QUALCOMM, stated that the new third generation standards should treat existing wireless network investments fairly while providing significant benefits for both operators and consumers.

cdmaOne, an American invention, is the fastest growing digital wireless standard in the world. Less than three years after its first commercial deployment in Hong Kong, cdmaOne is the dominant digital technology in the U.S., Korea and Mexico, and has been deployed throughout Canada, Asia, Latin America, Africa, Russia, and Eastern Europe. Commercial launches are expected later this year in Japan and Australia.

Along with the other CDMA equipment manufacturers, QUALCOMM has worked with the CDMA Development Group (CDG) on a third generation version of cdmaOne that will be known as CDMA2000. CDMA2000 has been submitted to various standards bodies around the world for consideration and eventual standardization.

Major stressed that QUALCOMM executives are committed to the International Telecommunications Union (ITU) process and will continue to work with all parties toward a converged third generation standard that meets the specifications. He noted, however, that such an effort requires significant changes in the way the European Commission and the European Telecommunications Standards Institute (ETSI) have approached the issue to date.

"We believe that standards and technology decisions should be made based on what is best for customers and operators, not what is best for wireless manufacturers or governments," Major said. "We believe in full and fair competition among technologies -- not in protectionism or in industrial policy that places manufacturers ahead of consumers."

ETSI and others are promoting a W-CDMA standard that does not meet with the basic principles espoused by Major during his testimony: a converged third generation standard that respects existing second generation investments; allowing markets, not governments, to guide timing and deployment of 3G services; and making decisions based on what is best for the customers and operators. This variant of CDMA cannot deliver what it promises, and will only raise costs for consumers. Major noted that the principles he outlined are consistent with the historical approach taken by the Federal Communications Commission (FCC) in the United States on standards issues.

Perry LaForge, Executive Director of the CDG, issued a statement that echoed Mr. Major's remarks. "The CDG has worked to establish strong relationships with standards bodies in Asia and Europe. Our goal is the development of wireless standards that are beneficial to operators and manufacturers around the world. Standards bodies in Asia have been very responsive to open dialogue on this issue. The Europeans, in contrast, seem resistant to such a dialogue. We are concerned that the European market will remain closed, as was the case with the GSM second-generations standard, while other regions pursue a more open-market approach. We hope that the European and ITU process are open and equitable and that all regional standards bodies will be willing to work toward a harmonized standard."

As a result of its early and unique leadership role in CDMA, QUALCOMM has an extensive CDMA patent portfolio. It includes more than 130 CDMA patents issued, more than 400 patent applications pending in the U.S. and around the world, and 55 licensed equipment manufacturers.

QUALCOMM has informed standards bodies that if the IMT-2000 CDMA standard meets certain requirements and provides a reasonable level of compatibility with today's cdmaOne networks, QUALCOMM will commit to widely license it essential patents for such standard on reasonable terms and conditions from unfair discrimination.

Top of Page

QUALCOMM Supports Converged Standard for IMT-2000

San Diego, Jun. 2, 1998 -- QUALCOMM Incorporated , the world’s leading developer of Code Division Multiple Access (CDMA) digital wireless technology for commercial wireless communications, today publicly announced its full support for convergence of CDMA proposals for the third-generation International Telecommunications Union(ITU) IMT-2000 standard.

QUALCOMM strongly endorses the widely held view that a unified, global CDMA standard for wireless communications systems is in the best interest of manufacturers, operators and consumers worldwide. QUALCOMM believes it is essential that the chosen IMT-2000 standard be equally compatible with both core GSM and TIA/EIA-41 networks that together will server perhaps one billion subscribers before IMT-2000 systems are widely deployed. QUALCOMM further believes it is essential that he new standard demonstrate improved performance over existing and evolved standards prior to final specification. QUALCOMM continues to work with standards bodies around the world to achieve convergence of the different IMT-2000 proposals, including compatibility with the present CDMA standard, cdmaOne, when performance is not compromised.

Unfortunately, as noted by the CDMA Development Group (COG) in their May 7, 1998 statement, certain companies may want convergence with W-CDMA and Wideband cdmaOne to fail for competitive reasons. Companies may believe they are serving their own narrow self interest by imposing specifications, such as the choice of chip rate, that are purposefully incompatible with cdmaOne or with TIA/EIA-41. However, several of these specifications, if left unchanged, would result in networks that are less efficient in the use of spectrum and provide lower quality at higher cost for voice and medium rate data than the evolved capabilities of cdmaOne in commercial use several years earlier.
Further information on details and advantages of a converged standard will be posted on the Company’s web site at http://www.qualcomm.com.

As a result of its early and unique leadership role in CDMA, QUALCOMM has an extensive CDMA patent portfolio with over 130 CDMA patents issued and more than 400 patent applications pending in the United States, Europe, Japan, Korea, China and elsewhere around the world. QUALCOMM has informed appropriate standards bodies in writing in conformance with their policies that it believes many of these patents and patent applications are essential to the implementation of the leading CDMA proposals for the IMT-2000 standard, including the W-CDMA and Wideband cdmaOne proposals.

QUALCOMM intends to license its essential patents on reasonable terms and conditions free from unfair discrimination for a single converged IMT-2000 standard, or, if not achieved, only for Wideband cdmaOne. It has so licensed over 55 manufacturers of cdmaOne equipment, including most major telecommunications manufacturers in North America, Europe and Asia, and has extended or is preparing to extend these bilateral agreements. QUALCOMM intends to review its royalty rates within the context of the market size, that will be achieved by a single converged standard. Although QUALCOMM has recently entered into a royalty-bearing license agreement with Philips Consumer Communications LP that includes use of QUALCOMM’s patents in the W-CDMA standard QUALCOMM has no intention of generally licensing its essential patent portfolio for any IMT-2000 standard (such as W-CDMA) that is purposefully made incompatible with cdmaOne and TIA/EIA-41 without providing a material benefit to the industry.

Top of Page

QUALCOMM Preparing to Offer Digital Wireless Service in Australia Using cdmaOne

QUALCOMM Acquires Spectrum to Serve Brisbane, Perth, Tasmania and Other Regions

San Diego, Jun. 1, 1998 -- QUALCOMM Incorporated today announce that through OzPhone (a company formed to participate in Australia’s Personal Communications Services auctions), it has acquired eight 800 MHz licenses, covering 5.4 million potential customers (POPs). QUALCOMM, as sole owner of OzPhone stock, plans to use the licenses to provide digital mobile and wireless local loop (WLL) services in several major metropolitan and suburban areas of Australia. QUALCOMM will deploy cellular systems based on the Company’s Code Division Multiple Access (CDMA) technology, which offers secure, clear voice communications and fast, reliable access to data services, including e-mail, fax and Internet browsing.

"The government’s decision to require the conversion from AMPS to digital in the cellular band in these areas will, for the first time, give Australians the opportunity to use CDMA, with its superior coverage, cost and quality, for wireless service in the cellular spectrum," said Harvey White, president of QUALCOMM. "We are looking forward to bringing high-quality fixed and mobile wireless voice and data services to major portions of the country. We believe our CDMA network will bring fixed and mobile users a new level of freedom to communicate anywhere, anytime in a cost-effective manner in these greater metropolitan areas."

The consortium has acquired a total of eight 5 MHz licenses in the 800 MHz band in the Brisbane, Perth, Cairns, Mackay, Maryborough. Grafton, Tasmania and Regional West regions, covering 5.4 million POPs. The total cost of the licenses was just under 10 million Australian dollars (approximately US $6.2 million). The results of the auction, which began on April 14, 1998 and ended May 25, 1998, were announced this week by the Australian Communications Authority, Australia’s telecommunications regulatory body.
CDMA technology, develop by QUALCOMM, is ideal for covering diverse terrain, and can serve a mix of fixed wireless and mobile users from the same equipment platform. Because of this flexibility, QUALCOMM will be able to tailor the type of service to each regions’ particular needs and growth patterns. For example, CDMA technology delivers spectral efficiency unmatched by any other commercial technology, making it an optimal solution for providing wireless services in urban and suburban areas, such as Brisbane and Perth. In addition, the wide coverage afforded by CDMA base stations will enable the network to be extended easily and cost effectively to rural areas -- providing access to service as well as roaming capabilities.

QUALCOMM is to be the turnkey supplier of infrastructure, equipment, deployment services, wireless local loop telephones and portable phones for the network rollouts. The systems will utilize QUALCOMM’s QCell ™ 800 MHz base stations and QCore ™ switch and base station controller products, which are fully scaleable for simple and cost-effective capacity expansion. QUALCOMM’s products optimize cdmaOne™ technology to its greatest potential, providing high-performance networks to operators all over the world. QUALCOMM networks are fully data-capable, offering consumers the ability to access e-mail, browse the World Wide Web and transmit faxes using their CDMA digital wireless phones. QUALCOMM also offers a variety of customer services, including training, program management, installation, commissioning and network planning using QUALCOMM’s QDesign ™ network planning software.

Top of Page