| October 1998 |
| Industry News |
Vendor News |
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Industry News
Cellular One Kansas/Missouri is
First U.S. Carrier To Offer Digital StarTAC™ Phone
The wait is over ... Kansas City area to have the first dual-mode
(CDMA digital & cellular) version of Motorola's award-winning StarTAC
phone. KC wireless customers can choose StarTAC phone-one of the smallest
and lightest phones in the world-only with Cellular One's digital service
plans.
OVERLAND PARK, Kan., Oct. 29, 1998 -- First on your block- how
about first in the World? That's what Kansas City-area wireless phone
users can be if they choose the new version of Motorola's wildly-popular
StarTAC phone.
Cellular One Kansas/Missouri announced today that the company is the
first wireless service provider in the U.S. to offer customers the lightweight
convenience of Motorola's StarTAC phones in a dual-mode CDMA
digital/cellular version.
"This really is a unique occurrence for the Kansas City area," said
David Davis, vice president and general manager of Cellular One Kansas/Missouri.
"One of the world's technology leaders has chosen this city and Cellular
One to introduce a product millions of people woverage of the Cellular One digital/analog
network in one of the smallest and ill want throughout the country. But starting
today, our customers can enjoy the unmatched clarity, features and cmost convenient
wireless phones available."
"Motorola is delighted that Cellular One is offering the CDMA
digital StarTAC phone to it's Kansas City customers," said Paulino
R. Barros Jr., vice president and general manager, Market Operations
for Motorola's Americas Personal Communications Group. "The desire
for CDMA digital StarTAC phones has been strong and we're excited to
provide consumers our newest dual-mode phone along with Cellular One's
advanced digital network."
StarTAC phone features & pricing
The StarTAC dual-mode (ST7760 800 MHz CDMA/AMPS) wireless phone is
among the smallest and lightest digital phones in the world. The phone
incorporates a variety of easy-to-use features that consumers can rely
upon for optimal performance in both their professional and personal
needs, while still maintaining style, weight, and generous talk times.
Weighing as little as 3.7 ounces with its optional slim Li-Ion battery,
the StarTAC phone provides talk times up to and between 90 and 250 minutes
or digital standby times up to and between 40 and 120 hours. Key phone
features include: a full matrix, graphic display providing a variety
of viewing options; and variable font sizes so phone numbers appear
in large, easy-to-read text while incoming text messages appear in a
smaller font so more of the message may be viewed. The ST7760 phone
also offers VibraCall™ alert, Internal Charger, optional headset
capability and supports Caller ID* and Voice Mail* services.
Cellular One Kansas/Missouri is offering the dual-mode StarTAC phone
with the following digital service plans:
Plan StarTAC Price
Month to month (no contract) $499.00
1-Year service plan $449.00
2-Year service plan $399.00
Leap Wireless International Operating
Company Chilesat Telefonia Personal -- S.A. Launches Commercial Wireless
Service in Chile
* Chilean Carrier to Provide Latin America's First Nationwide CDMA
Network
SAN DIEGO, Oct. 26, 1998 -- Wireless communications carrier
Leap Wireless International, Inc. today announced that one of its operating
companies, Chilesat Telefonia Personal, S.A. (Chilesat PCS), has launched
commercial wireless service in Chile that will provide nationwide coverage
in the 1900 MHz bandwidth. Chilesat PCS is the first carrier in Latin
America that will offer a nationwide network leveraging the power of
Code Division Multiple Access (CDMA) digital technology. In addition,
Chilesat PCS is the only CDMA carrier in Chile, a market of 14.9 million
potential customers (POPs). Leap Wireless believes that the quality
of the service and CDMA's secure, clear voice communications and data
services will make Chilesat PCS desirable among wireless users. Leap
Wireless believes Chile is a promising market with potential for growth
in wireless communications because teledensity is only 16% and a mere
4.4% of Chileans use wireless services. "Wireless is the fastest,
most cost-effective way to build teledensity, and we are excited that
our nationwide CDMA network will bring the economic benefits of reliable
telecommunications infrastructure to all of Chile," said Harvey
P. White, chairman and CEO of Leap Wireless. "We plan to meet the
demand for improved telecommunications by delivering high-quality wireless
communications and first-class customer service to the Chilean market."
Chilesat PCS is a joint venture owned 50% by Leap Wireless and 50%
by Telex Chile and its affiliate, one of the country's long-distance
operators. Chilesat PCS customers benefit from per-second billing and
features such as call waiting, three-way calling and call forwarding,
along with the highest quality voice service available today.
Bell Atlantic, AirTouch's Wireless Venture
Adds 108,000 Users
NEW YORK, Oct. 25, 1998 -- PrimeCo Personal Communications LP,
a wireless communications venture, added 108,000 new wireless phone
customers in the third quarter as it overhauled its network, replacing
equipment supplied by Motorola Inc. with gear provided by Lucent Technologies
Inc.
PrimeCo, which is owned by Bell Atlantic Corp. (BEL) and AirTouch Communications
Inc. (ATI), had been using network equipment made by both Lucent (LU),
of Murray Hill, N.J., and Motorola (MOT), of Schaumburg, Ill. Earlier
this year, the company decided to replace the Motorola equipment after
encountering difficulties with it.
Lucent announced in March a $500 million three-year equipment contract
with PrimeCo. The replacement of the Motorola gear was part of that
contract, said PrimeCo spokeswoman Catarina Wylie. She declined to say
how much PrimeCo spent on the overhaul, which the company said Tuesday
is complete. Replacing vital parts of the network without interrupting
service to PrimeCo's nearly 700,000 customers during a period of rapid
growth for the company was quite a feat, Wylie said.
"It's like doing open-heart surgery on a jogger while he's jogging,"
she said. The company said the transition went smoothly. PrimeCo's third-quarter
subscriber growth was up 72% from a year ago, and it was up 21% from
the second quarter, Wylie said. PrimeCo serves markets in the South
and Midwest.
The move to equipment provided solely by Lucent will help the carrier
take advantage of growing consumer acceptance of wireless phone service,
which is increasingly expected to compete for mainstream local phone
business. "Through our strategic partnership with Lucent, we can
bring innovative new products aimed at mainstream consumers to market
faster than ever before, "said PrimeCo Chief Executive and President
Lowell McAdam.
PrimeCo plans to introduce voice-activated dialing, automatic call
return and enhanced two-way messaging. The services will be set up on
the network in such a way that they can be offered individually or as
a package, Wylie said.
The introduction of two-way messaging will help PrimeCo compete with
paging companies, including those offering the most up-to-date range
of services, Wylie said.
Sprint PCS and Plantronics Bring the Convenience
of a Wireless Phone Together with Hands-Free Capability
Kansas City, Mo., Oct. 14, 1998 -- Sprint PCS and Plantronics,
Inc. today announced Sprint PCS will sell co-branded Plantronics headsets
at Sprint PCS stores and recognized distributors throughout the United
States.
"Hands-free headset capability is one of the most requested features
we receive from customers," said Mike Coad, vice president of subscriber
equipment at Sprint PCS. "We recognize the need to provide cost-effective,
hands-free flexibility to our customers, while maintaining superior
sound quality. Plantronics is a recognized world leader in headset technologies,
and together we offer a convenient, hands-free mobile solution to customers."
Wireless customers often use their phone from remote locations such
as off-site meetings, outdoor work environments or while driving in
the car. With a Sprint PCS phone and a co-branded Plantronics headset,
customers are free to attend to other tasks and be more productive.
Plantronics microphone technology filters out distracting background
noise, resulting in unmatched call clarity. This enables customers who
use their phones from noisy locations such as restaurants, factory floors,
or busy streets and freeways to have clearer conversations with less
interference.
"We are thrilled Sprint PCS is offering co-branded Plantronics
headsets in-store to their wireless customers," said Joyce Shimizu,
senior of Plantronics Mobile Communications Division. "With this
new offering, the two companies are enabling a convenient, hands-free
solution to enhance driver safety and everyday communications."
Plantronics headset technology is compatible with a broad range of
Sprint PCS phones, including the recently introduced Sprint PCS Touchpoint
phone. Additional Sprint PCS headset-ready phones include the Samsung
SCH-2000 and the Nokia 2170. Plantronics headsets and headset adapters
will be compatible with other select Sprint PCS phone later this year.
Availability and Pricing
Sprint PCS phones and Plantronics headsets are available through Sprint
PCS stores and will be available later this year through selected third
party retail stores. Plantronics CHS142N® headsets have a suggested
retail price of $44.00. Sprint PCS expects to sell a smaller Plantronics
headset later this year.
Sprint PCS Announces Exclusive Availability
of Sprint PCS Touchpoint ™ Phone "Phone with the mouse"
Makes Text Messaging Simple for Customers Nationwide
Kansas City, Mo., Oct. 14, 1998 -- Sprint PCS today announced
the availability of the Sprint PCS Touchpoint™ phone manufactured
by DENSO and provided to consumers and businesses exclusively by Sprint
PCS. The Sprint PCS Touchpoint is simple to use and has a breakthrough
feature, a built-in mouse. The mouse and large display screen are the
first of their kind for a wireless phone. The phone delivers text messaging
service with the most user-friendly interface available. These features
combined with the phone's auditory caller ID feature, 99-entry phone
book with up to nine numbers per entry and scheduling capabilities make
the Sprint PCS Touchpoint one of the most advanced, 100 percent digital,
user-friendly wireless PCS phone available.
The Sprint PCS Touchpoint phone offers our customers a break-through
user interface, making it one of the easiest PCS phones to use,"
said Chuck Levine, chief sales and marketing officer for Sprint PCS.
"Its mouse allows customers to literally point and click their
way through menus and options. The large display screen makes it easy
for customers to read text messages and the built-in scheduler helps
customers keep track of important meetings and events. Clearly, the
Sprint PCS Touchpoint will be one of the hottest gifts this holiday
season."
Sprint PCS recently launched the nationwide trial of its text messaging
and numeric pagin services. Now, Sprint PCS customers can receive text
messages and numeric pages on their Sprint PCS phones throughout Sprint
PCS' 100 percent digital, 100 percent PCS nationwide network. "With
Sprint PCS Touchpoint's sophisticated design, features, large display
screen and user-friendly interface, text messaging has never been more
simple and easy to use," Levine added.
The Sprint PCS Touchpoint's unique phone book has the capability of
storing up to 300 phone numbers; the phone has 98 entry locations and
can store up to nine numbers per entry. Users can also program distinctive
rings to phone numbers enabling users to have auditory caller ID.
The Sprint PCS Touchpoint phone has a suggested retail price of $179.99
and will be sold in Sprint PCS stores, RadioShack stores and other participating
retailers in the Sprint PCS nationwide wireless network. The Sprint
PCS Touchpoint is a single-band, CDMA (Code Division Multiple Access)
phone and comes packaged with a standard lithium-ion battery, a desktop
charging stand and a separate AC adapter that can be used as a travel
charger (the phone has a built-in rapid charger). The standard battery
offers approximately 3 hours of talk time or 48 hours of standby time;
it is lightweight (5.2 ounces) and small (5.2" x 0.9").
"DENSO is very pleased to offer its first U.S.-made CDMA PCS phone
exclusively through Sprint PCS," said Marbo Higuchi, vice president
of wireless communications for DENSO. "We are also particularly
proud of our on-time delivery. Design and production of the Sprint PCS
Touchpoint was a join effort between DENSO and Sprint PCS with the goal
of making it easier than ever for consumers and businesses to use a
wireless phne. DENSO's expertise in high-quality electronic manufacturing
coupled with Sprint PCS' superior all-digital nationwide wireless network
has produced an exceptional product, the Sprint Touchpoint phone.
The Sprint PCS Touchpoint is the result of joint development and design
by Sprint PCS and DENSO. DENSO Wireless Systems America (DWAM) was established
in Vista, California in June 1997, to pursue wireless communication
equipment manufacturing operations, under the leadership of Kazunori
(Ken) Amano, president. This state of the art manufacturing facility
is located on an approximately 16-acre site located 5 miles East of
DENSO's new ocean view facility in Carlsbad, California, home ot LA
Labs R&D, and Wireless Sales, Marketing and Product Planning under
DENSO Sales California, Inc. The DWAM facility is approximately 220,000
sq. ft., with a current work force of 160 associates. "DENSO Wireless
Systems America, like DENSO manufacturing facilities, has an absolute
dedication to producing the highest quality products for our customer,
and a continuous goal of improving customer satisfaction," said
Dave Redden, DWAM vice president.
Telstra selects CDMA for new mobile network
Telestra, Oct. 14, 1998 -- Telstra announced today its new national
mobile network that will replace the old analogue (AMPS) network would
be based on Code Division Multiple Access (CDMA) technology.
Telstra's Group Managing Director, Products and Marketing, Mr Lindsay
Yelland, said Telstra's decision to build the new network would particularly
benefit rural mobile users.
"For more than 1.5 million users currently connected to the analogue
network, the CDMA network will combine the benefits of digital operation
with coverage similar to analogue for handheld customers," Mr Yelland
said.
"Telstra plans to commercially launch CDMA in mid 1999 in Melbourne,
Sydney, Perth, Adelaide and Brisbane. This will be followed by a rapid
introduction commencing the second half of 1999 into regional locations
covered by the current analogue network.
"Telstra's decision to choose CDMA followed an extensive evaluation
process and rigorous examination of the various 800MHz mobile technologies
against a range of criteria for its suitability as a replacement for
the analogue network. CDMA best meets the needs of our customers as
well as our strict technical service requirements," Mr Yelland
said.
"CDMA technology delivers high network capacity and service quality.
CDMA is currently operational in a number of countries including USA,
Canada, South Korea, Hong Kong, Japan and Singapore. There are more
than 16 million customers over 100 CDMA networks around the world. Industry
experts predict that CDMA will have approximately 19 million customers
by the end of 1998.
"The new network will enable Telstra to keep pace with the growth
in the Australian mobiles market while also providing a service that,
importantly, meets the requirements of our regional and rural customers
and minimises the impact of the analogue network closure.
"Telstra will conduct trials of CDMA in rural areas during the
first half of 1999 to demonstrate coverage and performance of the new
network," Mr Yelland said.
To smooth the transition from analogue to digital, Telstra has successfully
negotiated with Optus, Vodafone and the Government, a strategy for the
phase out of the analogue network that will ensure continued mobile
phone service and coverage in rural areas.
As instructed by the Government, Telstra will close the analogue network
in the five major capital cities and an additional 130 non-metropolitan
sites on December 31, 1999. These 130 sites represent approximately
one third of all sites outside metropolitan areas.
Telstra will determine the 130 non-metropolitan sites in conjunction
with the rollout plan for its new CDMA network and finalise the sites
by the end of 1998.
Of the 270 analogue sites remaining open after the end of 1999, at
least 50 per cent will close on June 30, 2000, and the remaining sites
on or before December 31, 2000.
"Telstra's CDMA network rollout will be completed prior to the
final closure of the analogue network ensuring customers can retain
continuity of service during the period of the analogue network closure,"
Mr Yelland said.
"A range of competitively priced handsets will be available closer
to the CDMA launch. The handsets are expected to be similar in size
and performance to those of current digital phones. A new handset will
be required to access the new network and will also allow access to
the existing analogue network. All analogue customers will need to purchase
a new handset.
"CDMA will complement Telstra's existing national GSM network.
Telstra will continue to support, expand and enhance its GSM network
maintaining its leadership position in the Australian market,"
Mr Yelland said.
Telstra has chosen Nortel Networks Australia as its vendor to provide
the infrastructure for the rollout of its CDMA network. Nortel Networks'
CDMA wireless networks are in operation or under construction in more
than 80 cities worldwide.
Leap Wireless International Operating Company
OzPhone Pty. Ltd. Acquires Additional Spectrum in Australia OzPhone
Plans to Offer Service in Australia in Second Half of 1999
SAN DIEGO, Oct. 1, 1998 -- Wireless communications carrier
Leap Wireless International, Inc. today announced that one of its operating
companies, OzPhone Pty. Ltd., has acquired two additional cellular licenses
in Australia. The properties, Remote West and Remote Queensland, are
in addition to the eight licenses OzPhone purchased in Australia in
May 1998. OzPhone's portfolio now totals ten licenses covering 6 million
potential customers (POPs) in Brisbane, Perth, Cairns, Mackay, Maryborough,
Grafton, Tasmania, Regional West, Remote West and Remote Queensland
regions. OzPhone expects to provide digital wireless services using
Code Division Multiple Access (CDMA) technology starting in the second
half of 1999. The CDMA networks will offer secure, clear voice communications
and fast, reliable access to data services, including e-mail, fax and
Internet browsing. Leap Wireless deploys CDMA networks in domestic and
international markets with strong growth potential. In addition to OzPhone,
Leap Wireless is building CDMA networks in Mexico, Chile, Russia and
the United States.
"We are very excited about the opportunities in Australia,"
said Harvey P. White, chairman and CEO of Leap Wireless. "We believe
that with the superiority of CDMA technology and our commitment to customer
service, we can deliver first class wireless service."
OzPhone expects to offer high-quality voice and data services using
wireless circuit switched data capabilities such as faxing and Internet
access. In addition, OzPhone plans to provide packet data services,
which will give subscribers a fast and efficient direct connection to
the Internet.
"Our state-of-the-art wireless mobile data services will give
users a full suite of Internet services and a transparent connection
to their office servers, allowing them to check email, browse the Internet
and schedule meetings from their mobile phone or portable computer,"
White said.
OzPhone's packet data services also will enable a variety of business
applications, including point of sale credit card authorization services
and meter reading.
Pegaso Telecomunicaciones Consortium Makes
Final License Payment for PCS Spectrum in Mexico -- Leap Wireless International
Operating Company to Launch Nationwide Network in Mexico
SAN DIEGO, Oct. 1, 1998 -- Leap Wireless International, Inc.
today announced that Pegaso Telecomunicaciones, S.A. de C.V., a Mexican
company owned 33% by Leap Wireless, yesterday made its final payment
for its Personal Communications Services (PCS) license as required by
Mexico's Federal Communications Authority (Cofetel). Winning license
bidders were required to pay 20% of their bids up front in May 1998
and the remaining 80% by September 30, 1998.The Pegaso consortium paid
just over 2 billion pesos (approximately US$200 million) in the final
payment for nine 1900 MHz licenses that will enable it to provide nationwide
service.
Pegaso Telecomunicaciones is building a nationwide network to provide
digital PCS wireless services using Code Division Multiple Access (CDMA)
technology. The CDMA networks will offer secure, clear voice communications
and fast, reliable access to data services, including e-mail, fax and
Internet browsing. The consortium plans to launch commercial services
in Mexico's four largest markets-Mexico City, Monterrey, Guadalajara,
and Tijuana- starting in early 1999. The consortium includes Grupo Pegaso,
Grupo Televisa, Leap Wireless, Citicorp Equity Capital Latin America,
AIG-GE Capital Latin America Infrastructure Fund, and Nissho Iwai Corporation.
Vendor News
Qualcomm Expects 20 Million CDMA Wireless Users
By End Of 1998
BEIJING, China, Oct. 29, 1998 -- Qualcomm Inc. late Wednesday said it
thinks the number of users of code division multiple access, or CDMA, wireless-communications
technology will reach 20 million by the end of this year.
"CDMA is the fastest-growing wireless technology," Jeffrey Belk,
Qualcomm's vice president of marketing, told reporters in Beijing.
In the U.S., there are twice as many CDMA subscribers than global satellite
mobile, or GSM, subscribers, he added.
However, debates over global standards for the next generation of mobile telephones
are holding back what potentially could be even faster growth for the technology,
Belk said. In particular, he added, government regulatory bodies are preventing
fair competition by not letting consumers decide among the various systems available.
"We want a level playing field for the technology rather than a government
mandate of technology," Belk said.
San Diego-based Qualcomm is a pioneer in the CDMA standard. Qualcomm and other
proponents of the technology argue that CDMA systems will allow providers to
make a smoother and more cost-effective transition to the next generation of
wireless technology. CDMA technology, unlike GSM systems, will allow for high-speed
data transmissions needed for the multimedia applications that will characterize
the wireless standard of the future, they say.
"The most important market for wireless technology companies is Asia,
which has become a battleground for GSM and CDMA advocates," Belk said.
"Asia has a quenchless thirst for communication," Belk said. "Asia
has had some difficulties but telecoms have continued to grow. We're a long
way from saturating the market."
In particular, China could soon be the No. 1 market for wireless technology
and is already the main market for many mobile phone companies, he added. According
to China's Ministry of Information Industry, mobile phone users reached 20.1
million at the end of August, an increase of 6.8 million from the year-earlier
period. China ranks third behind the U.S. and Japan in the number of mobile
phone users.
"China could be a key pivotal point in Asia because of the quantity of
people who use wireless here," Belk said.
In China, however, the GSM standard is widely used. CDMA systems are only under
trial operations in Beijing, Shanghai, Xian and Guangzhou. Qualcomm's handset
sales in China "are not substantive" because of this limitation, said
Belk.
Qualcomm is trying to persuade Chinese authorities to allow greater use of
the CDMA standard as a way of meeting the country's explosive demand for wireless
services.
CDMA systems have three to four times the capacity of GSM systems and 10 to
15 times that of analog systems, Belk said. Since 1990, the average growth rate
of mobile phone users in China has been about 160%, according to government
figures. China expects to have 50 million mobile phone users by the turn of
the century.
Grupo Telefonica Selects Lucent Technologies
to Build CDMA Wireless Networks in Brazil
SAO PAULO, Brazil, Oct. 27, 1998 -- Lucent Technologies today announced
that it has been selected by the cellular companies owned by the Telefonica
Group in Brazil to build wireless networks based on code division multiple access
(CDMA) in the states of Rio de Janeiro and Sergipe in Brazil. The initial phase
of the project calls for the installation of a new CDMA network which will have
the capacity to serve one million subscribers in the metropolitan area of Rio
de Janeiro.
The award is subject to negotiation of final terms and conditions. Lucent Technologies
will provide its flagship 5ESS® AnyMedia™ switching platform, and Autoplex®
System 1000 Series II cell sites, as well as technical expertise, professional
and support services. The digital cell sites for this project will be manufactured
at the Lucent manufacturing facility in Campinas, Brazil.
"We are extremely pleased to have been selected as Telefonica's technology
supplier in this important project," said Virgilio Freire, president of
Lucent Technologies in Brazil. "We are particularly proud that most of
the products used for this project will be manufactured here in Brazil."
Lucent's 5ESS® AnyMedia™ Switch is a large-scale, software-based digital
switching system that delivers any media from one platform. This capability
allows service providers to offer any service - local, long distance, voice,
data, or video - over any network - wireless or wireline. The switch is the
most reliable on the market today according to analysis of the U.S.-based Federal
Communications Commission (FCC) reports of key performance categories. The 5ESS
Switch currently serves more than 104 million lines and 48 million trunks from
four thousand host switches in more than 50 countries worldwide.
The Autoplex System 1000 Series II platform uses CDMA, a digital wireless technology
based on the IS-95 air interface. This technology provides increased call capacity
and enhanced call quality that is comparable to landline service. CDMA reduces
the static and cross-talk sometimes heard on analog systems, and provides a
"soft hand-off" capability that makes call hand-offs between cell
sites and mobile switching centers (MSCs) virtually unnoticeable to customers.
In the Caribbean and Latin America region, Lucent Technologies has won contracts
to build CDMA networks in Mexico, Venezuela, El Salvador, Puerto Rico, the Dominican
Republic and Guadeloupe. In North America, Lucent is the leading provider of
CDMA infrastructure equipment for the largest PCS network providers - PrimeCo
Personal Communications, Sprint PCS and others - and for cellular carriers such
as GTE, AirTouch and Bell Atlantic Mobile. Telefonica International, S.A. (TISA)
is the subsidiary of Spain's Grupo Telefonica which handles the company's international
commercial strategy, identifying business opportunities and executing investment
projects in Latin America and other markets. At the end of June 1998, Telefonica
International managed more than 12 million fixed telephone lines, 2.5 million
cellular subscribers, and two million cable TV customers in Latin America. TISA,
which in 1997 had revenues of US$2.9 billion, has investments in Argentina,
Brazil, Chile, Peru, Puerto Rico, Venezuela and Portugal. The Brazilian Telebras
system was privatized in July of this year. Telefonica Internacional, S.A. won
two wireless regions covering the states of Rio de Janeiro and Espirito Santo
- which is the second largest wireless region in the country - as well as the
region for the states of Bahia and Sergipe. Telerj Celular is the subsidiary
of Telefonica Internacional for the wireless region in Rio de Janeiro.
QUALCOMM Signs CDMA Infrastructure Contract
with U S WEST; PCS System to Serve More Than 10 U.S. Markets
SAN DIEGO, Oct. 26, 1998 -- QUALCOMM Incorporated today announced it
has signed a multi-year contract with U S WEST Wireless, LLC, estimated to involve
sales of at least $50 million, to expand U S WEST's Personal Communications
Services (PCS) coverage into more than 10 new markets.
U S WEST, an established wireline, wireless PCS, data networking, directory
and information services operator, is one of the premier telecommunications
companies in the world. U S WEST's new 1900 MHz cdmaOne™ (IS-95 Code Division
Multiple Access) network will make use of QUALCOMM's advanced QCell™ base
station products.
"We experienced the high quality of QUALCOMM's consumer products firsthand,
which led us to explore opportunities with QUALCOMM in the wireless infrastructure
arena," said Peter Mannetti, president of U S WEST Wireless. "The
unique partnership between QUALCOMM Consumer Products and Wireless Infrastructure,
as well as the value of their combined efforts, were important factors in our
decision to expand our relationship with QUALCOMM to deliver our customers the
best possible products and services."
QUALCOMM's QCell base stations and QCore™ 22 base station controller will
interface with U S WEST's existing switching platforms. Through an open architecture,
U S WEST can retain its existing switching technology investments while choosing
the best wireless access equipment to serve its diverse market needs. QUALCOMM
will also provide technical training and some deployment services to U S WEST.
"U S WEST, an industry leader in integrating communications services for
the consumer, has a strong vision for the future of digital wireless telecommunications,"
said John Major, president of QUALCOMM's Wireless Infrastructure Division. "As
a leader in developing and delivering innovative CDMA solutions, QUALCOMM is
uniquely qualified to contribute to the realization of this vision. QUALCOMM
looks forward to working closely with U S WEST to deliver leading-edge CDMA
services that meet the diverse needs of U S WEST customers."
The new network supports the expansion of U S WEST's existing Advanced®
PCS™ services, which transparently integrates reliable, high-quality wireless
connections with U S WEST Communications' existing wireline features and services.
QUALCOMM and U S WEST will also be conducting more than 12 different trials
on the new networks to evaluate various products and services, including High
Data Rate (HDR) technology, E-911 and in-building coverage.
DSP Communications to Supply WorldCDMA -- Dual-Mode
Chipsets to SK Teletech
CUPERTINO, Calif., Oct. 26, 1998 -- DSP Communications, Inc. today announced
that it has signed a supply agreement with SK Teletech, a subsidiary of SK Telecom,
for IS-95 based Code Division Multiple Access (CDMA) chipsets. Under the terms
of the agreement, DSPC will develop and supply WorldCDMA™ baseband processor
chipsets for SK Teletech's dual-mode CDMA/analog handsets. Based on the agreement,
DSPC will begin delivery of the baseband processor chipsets in Q4 of '98.
"We are pleased to work with SK Teletech in the Korean market to supply
WorldCDMA baseband processor chipsets," said Dr. Joseph Perl, President
& CEO of DSPC. "We are confident that SK Teletech will achieve tremendous
success in developing, engineering and marketing CDMA handsets. We look
forward to a long-term relationship with SK and contributing to SK's commitment
to pioneering handsets as well as remaining a leading cellular operator in Korea."
"We are confident that DSPC's proven expertise in providing competitive
solutions for dual-mode CDMA and analog baseband processing is the ideal choice
in fulfilling our need for cdmaOne™ chipsets," said Kyung Hong, President
of SK Teletech. "By combining our respective strengths, SK Teletech will
continue to offer Korean subscribers smaller, cost-effective, high quality dual-mode
handsets."
WorldCDMA chipsets developed by DSPC will provide SK Teletech with a cost-effective,
low power, flexible solution for dual-mode CDMA and analog baseband processing.
DSPC's chipset provides an ideal solution for worldwide implementation in markets
such as Korea and also in Japan, where DSPC is already a leading supplier. Connected
through simple interfaces to the RF/IF unit, host microcontroller, audio codec,
and keypad, DSPC's WorldCDMA chipset completes the hardware required for a mobile
terminal. Carriers who have deployed the IS-95 standard now expect smaller and
lighter handsets for their customers due to the increasingly competitive market.
Anticipated to be a leading provider of cdmaOne handsets in the Korean market,
SK Teletech plans to attract consumers with low cost, small size, and high quality
handsets.
SK Teletech, a joint venture of SK Telecom and Kyocera of Japan, develops,
engineers, and markets cdmaOne handsets. Commercial handsets are expected to
be available in the Korean market by the end of 1998. SK Teletech will start
manufacturing phones at Sewon Telecom under the brand name of SK. SK Teletech
will design handsets and sell the products in the local market, while Kyocera
will provide technical assistance and expertise in quality control.
Ericsson Drops Three 'Essential' Patents from
Lawsuit Against--QUALCOMM and Surrenders Two Others
* Ericsson's Actions Further Undercut Ericsson's Claim to Hold Essential
Patents for CDMA Standards
SAN DIEGO, Oct. 20, 1998 -- QUALCOMM today announced that Ericsson,
Inc. and its Swedish parent Telefonaktiebolaget LM Ericsson have dismissed with
prejudice all claims under three of the patents asserted against QUALCOMM in
the litigation brought by Ericsson in Marshall, Texas. In a further development,
Ericsson, in papers filed with the United States Patent and Trademark Office,
also admitted the invalidity of the claims of two other patents asserted against
QUALCOMM in the lawsuit, and surrendered those patents. All five patents are
among the eight patents that, beginning in December 1995, Ericsson repeatedly
told the telecommunications industry were "blocking" patents or were
"essential" to make or use cellular products compliant with IS-95
and other cdmaOne™ standards.
In December 1995, Ericsson represented to the Telecommunications Industry Association
and others that it held eight allegedly essential patents for IS-95. QUALCOMM
challenged Ericsson's representation, and Ericsson filed a patent infringement
lawsuit against QUALCOMM in Marshall, Texas in September 1996, eventually bringing
a total of 11 patents into the case. QUALCOMM counterclaimed against Ericsson
for unfair competition, stating in court filings that "Ericsson has knowingly
made false and unfounded claims, including the assertion that it owns or controls
patents that are 'essential' to the manufacture, use or sale of products that
implement the IS-95 standard" with the "inten[t] that its false claims
... would have an anticompetitive effect and injure QUALCOMM's business."
Ericsson's dismissal or surrender of the majority of the supposedly essential
patents substantiates QUALCOMM's charge that Ericsson deliberately misled the
industry.
"The IS-95 standard has not changed and Ericsson's patents have not changed
since Ericsson first publicly contended that these five patents were essential
to IS-95. In light of those facts, Ericsson's recent actions and admissions
can only confirm QUALCOMM's complaint that Ericsson wrongfully and falsely claimed
essential patents," said Louis Lupin, QUALCOMM's senior vice president
and proprietary rights counsel. "That Ericsson waited more than two years
to dismiss these meritless claims sheds light on its motives. These events show
that Ericsson's statements to the industry with respect to its CDMA patent position
are not believable."
Unlike QUALCOMM, whose CDMA patent position has been accepted by more than
55 major telecommunications companies that have entered into royalty-bearing
licenses with QUALCOMM, Ericsson has yet to announce a single royalty-bearing
license under any of Ericsson's alleged CDMA patents for any CDMA standard.
Moreover, Ericsson has not identified any essential patents it claims to hold
with respect to any proposed third generation CDMA standard, including the W-CDMA
proposal it has promoted in Europe, Japan and elsewhere, despite specific requests
to do so from standards-setting bodies. Consequently, it is not surprising that
notwithstanding Ericsson's threatened and actual litigation against CDMA equipment
manufacturers, Ericsson's claims to hold essential CDMA patents have not been
accepted.
Ericsson had been contending in the Texas lawsuit that the three dismissed
patents, U.S. Pat. Nos. 5,148,485, 5,239,557, and 5,430,760, covered certain
features of IS-95 compatible products sold by QUALCOMM, and that the two surrendered
patents, U.S. Pat. Nos. 5,109,528 and 5,327,577, covered "soft handoff"
in accordance with IS-95. Ericsson dropped the three patents from the lawsuit
shortly before Ericsson was due to disclose in court proceedings its interpretation
of the meaning and scope of the allegedly infringed claims and several months
before the scheduled trial date in February 1999.
Ericsson's surrender of the other two patents and admissions of invalidity
were made during reissue proceedings before the United States Patent Office
in which Ericsson is applying for new claims which it argues avoid the invalidity
problems of the surrendered claims. To date, Ericsson has not dismissed its
claims against QUALCOMM under the surrendered patents in the Texas litigation.
Dobson Cellular Systems Awards US$30 Million Contract
to Nortel Networks Digital Wireless Network Equipment to be Installed in Four
Markets
DALLAS, Oct. 21, 1998 -- Dobson Cellular Systems will install Nortel
Networks* digital infrastructure equipment in Maryland, New York, Ohio and Pennsylvania
under a three-year, US$30 million contract. Nortel Networks will supply Dobson
Cellular with AMPS, TDMA IS-136 and cdmaOne* (IS-95) radio and switching equipment.
This contract expands on a US$35 million contract Dobson Cellular and Nortel
Networks signed in 1995.
"As we continue to bring our customers the services and features they
want, the need for networks that are reliable and cost-effective is crucial,"
said G. Edward Evans, president and chief operating officer, Dobson Cellular
Systems. "Our supply agreement with Nortel Networks allows Dobson Cellular
to meet the demands and desires of our subscribers."
Nortel Networks will install 800 MHz TDMA equipment for Dobson Cellular in
areas around Frederick, Md., Syracuse, N.Y. and Pittsburgh, Pa. Nortel Networks
will initially install AMPS equipment in the Akron, Cleveland and Youngstown,
Ohio, and will add 800 MHz CDMA next year.
"Dobson Cellular's success is a testament to our dedication to helping
wireless operators maintain a competitive edge," said John Vice, vice-president
and general manager, TDMA, Wireless Networks, Nortel Networks. Dobson Communications
Corporation, an Oklahoma City-based company, provides wireless and wireline
services in nine states under the names Dobson Cellular Systems, Cellular One,
AirTouch Cellular, Dobson Telephone, McLoud Telephone, Dobson Fiber, Logix Communications
and American Telco.
TAS CDMA Test System Adds Support for Soft Handoff Evaluation--
New Feature Advances Mobile Test Capabilities
EATONTOWN, NJ, Oct. 21, 1998 – Telecom Analysis Systems (TAS) has
added Soft Handoff test capability to its industry-standard CDMA Automatic Test
System (CDMA-ATS)*. The addition of this key feature significantly increases
the CDMA handset test coverage available with standard test instruments and
eliminates the need to perform complex manual testing.
TAS CDMA-ATS is a complete turn-key test system used by manufacturers
and service providers to evaluate the performance of CDMA mobiles. In
addition to comprehensive CDMA test instruments, the system includes
the TASKIT*/CDMA test executive software that automates the testing
process. TASKIT*/CDMA can also be used in streamlined test setups to
control up to two base station emulators and the handset under test.
Soft Handoff is the ability for a CDMA handset to simultaneously communicate
with multiple base stations. By establishing a new connection before
terminating the previous connection, a mobile avoids call disruptions
as it hands-off between neighboring cells. Since this function is critical
to the operation of CDMA networks, industry test standards require the
handoff performance of mobile phones be verified. Previously this level
of handoff testing could only be accomplished using actual cellular
infrastructure equipment.
"Our CDMA customers are thrilled about the introduction of Soft
Handoff emulation. Using real-world base station equipment to perform
this type of handset testing is impractical and time consuming. In the
past service providers and manufacturers had no alternative but to use
these awkward setups since these tests are required by the industry
test standards," said Rob Van Brunt, Product Manager of Wireless
Test Instruments for TAS. "By emulating Soft Handoffs in the lab,
developers will be able to quickly verify their products comply with
performance standards before they are released into the market."
The TASKIT/CDMA test software seamlessly synchronizes a pair of base
station emulators to create two independent cell sites. During test
execution, TASKIT/CDMA automatically coordinates the handoffs required
to validate mobile performance. Therefore eliminating the need for complex
manual operation.
TAS CDMA-ATS automatically tests cellular and PCS phones for adherence
to CDMA performance standards. CDMA-ATS speeds development and deployment
of CDMA mobile phones, allowing manufacturers and service providers
to deliver a quality product to market in a shorter time. CDMA-ATS provides
a standard, stable CDMA test solution that is easy to set up, maintain
and enhance. CDMA-ATS is based upon TAS’ CDMA-LAB instrument system
and TASKIT*/CDMA software for Windows '95 and Windows NT based computers.
TAS CDMA-LAB includes the TAS 4500 FLEX4PLUS RF Channel Emulator and
TAS 4600A Noise and Interference Emulator.
Telstra Awards Turnkey CDMA Project to Nortel
Networks -- New Service Will Use cdmaOne Wireless Technology
SYDNEY, Australia, Oct. 14, 1998 -- Telstra has selected Nortel Networks*
[NYSE: NT/TSE: NTL] to build a national turnkey cdmaOne* (IS-95 CDMA) mobile
telephone network with service beginning in the third quarter of 1999. The project
is valued at more than $A300 million.
"Telstra has a long-standing working relationship with Nortel Networks
through the deployment of its DMS* switches, Centrex ACD, data services, fixed
wireless products and Norstar business communications systems, and we are looking
forward to continuing this successful association during the CDMA project,"
said Gerry Moriarty, group managing director, Network Technology Group and Multimedia,
Telstra.
"Telstra's requirements span a broad range of technical and financial
criteria, including quality, capacity, coverage, ease of transition from analog
to CDMA and economical evolution to future services," said Brian Davis,
managing director, Nortel Networks Australia.
"Our CDMA solution best meets Telstra's requirements," Davis said,
"and our global experience with major, turnkey wireless network projects
demonstrates that we can and do deliver."
The Nortel Networks CDMA solution includes the DMS-MTX* switching system, and
features a family of advanced base stations including the Nortel Networks CDMA
Metro Cell. Together, they are designed to meet Telstra's immediate needs for
mobile service while allowing for future introduction of data and fixed wireless
services.
Nortel Networks CDMA wireless networks are in commercial service or under construction
in more than 80 cities worldwide, serving more than a million subscribers. Nortel
Networks has shipped more than 7,000 CDMA base stations in just over two years.
Rostov Electrosvyaz, Nortel Networks Bring Fixed CDMA
Service to Southern Russia
MOSCOW, Oct. 13, 1998 - Rostov Electrosvyaz today launched fixed
wireless telephone service in the Rostov region of South Russia to provide
the residents of Novocherkassk with voice communications in areas generally
unserved by traditional telephone networks.
The ability for Nortel Networks to quickly deliver a reliable and cost-effective
solution to Rostov Electrosvyaz helped the operator rapidly deploy a
network to meet the needs of potential Russian subscribers. Rostov Electrosvyaz's
cdmaOne (IS-95 CDMA) network is part of a 1997 contract with Nortel
Networks. Novocherkassk, a historic Southern Russian town and the former
Cossack capital, is located in the Rostov region, one of the most developed
business regions in Russia. Residents, vacationers and business executives
will benefit from the Rostov Electrosvyaz wireless offering.
In addition to providing wireline service to tens of thousands of subscribers,
Rostov Electrosvyaz has introduced fixed wireless service that will
target residential users and small business users in areas where wireline
service is not presently available.
"Nortel Networks' advanced technology and proven track record in
deploying large scale telecommunications solutions played major roles
in our decision to deploy their CDMA solution," said Michael Domchenko,
director, Novocherkassk branch, Rostov Electrosvyaz.
"Nortel Networks' equipment is reliable and allows us to provide
first-rate service to our subscribers," Domchenko said. "Some
250 subscribers are already enjoying our service."
"This project allows us to continue to penetrate the wireless market
in Russia and further increase Nortel Networks' presence in the Eastern
European region," said Glenn Blood, vice-president, Wireless Networks,
Nortel Networks. "Our CDMA technology and experience will allow
Rostov Electosvyaz to meet the needs of people who have been waiting
for telephone service for years."
"The administration of Novocherkassk is very thankful for Nortel
Networks' work and technology which is second to none," said Nikolai
Prisyazhnuk, mayor of Novocherkassk.
Japan's Kyocera Forecasts Higher Earnings On Telecom-Equipment
Sales
KYOTO, Japan - Kyocera Corp. expects profits in the second half of this
fiscal year to be better than the first half because of sales of new telecommunications
equipment and an improvement in its semiconductor parts business.
Kyocera also expects to benefit in the second half from stronger sales
of code division multiple access, or CDMA, handsets. CDMA is expected
to eventually replace Personal Digital Cellular, or PDC - the main digital
cellular standard in Japan - because of better voice quality, faster
transmission times and better cost performance.
"At the moment, the number of CDMA subscribers is less than originally
expected," said Akihiko Toyotani, a spokesman for the investor
relations group and finance group of Kyocera. "In the second half,
we think the number of subscribers will increase significantly because
of the superior technology."
DDI Corp., an affiliate of Kyocera for which Kyocera acts as the main
supplier of CDMA handsets, expects that the number of its CDMA subscribers
will grow to around 7000,000 by the end of next March, Toyotani said.
DDI only began the CDMA business this past July.
He said that Kyocera's CDMA handset sales will also get a boost from
sales to Nippon Ido Tsushin Corp., which he said will start CDMA service
in the Tokyo and Nagoya regions next spring.
While opportunities for Iridium sales will occur mostly overseas, the
main market for CDMA handsets will be Japan, said Toyotani. Still, there
will be sales opportunities in South Korea and the U.S. as the CDMA
standard is used in those countries as well, he said. CDMA was developed
by Qualcomm Inc. (QCOM) of the U.S..
With growth driven by Iridium and CDMA equipment sales, Kyocera said
overall sales of telecommunications equipment will increase "significantly"
in the second half compared to the first half.
RT Communications to Offer Fixed, Mobile Wireless Service
in Wyoming --Nortel Networks to Build CDMA Digital Network
DALLAS, Oct. 6, 1998 -- Looking to enhance existing subscriber offerings
with state-of-the-art mobile communications services, RT Communications
of Worland, Wyoming has selected Nortel Networks to expand its digital
network with mobility switching and radio equipment over the next three
years.
RT Communications will upgrade its existing Nortel Networks DMS-10*
switching system, and add a Nortel Networks DMS-100 Wireless switch
capable of supporting both wired and wireless service. Nortel Networks
will also supply 1900 MHz cdmaOne (IS-95 CDMA) base stations to provide
digital wireless coverage in a variety of regions in Wyoming, the service
areas of C, E and F band PCS provider SpectraCom, a wholly-owned subsidiary
of RT Communications.
SpectraCom plans to target customers looking for the convenience of
high-quality mobile communications service, as well as residential and
business users interested in an alternative to traditional wired telephone
service. SpectraCom also plans to offer circuit-switched wireless data
services like messaging and fax.
"This upgrade to our network will provide an elegant and cost-effective
way to pursue business in the growing wireless arena," said Dee
Monsen, vice-president and general manager, RT Communications.
"Our mobile and fixed wireless voice and data offerings will give
the people of Wyoming the comprehensive communications services and
features they desire," said Stephen Jantz, general manager, SpectraCom.
"The DMS-100 Wireless switch and CDMA technology provide solutions
that easily accommodate the needs of wireless operators in rural and
urban locations," said Maureen Patterson, vice-president, sales,
Wireless Networks, Nortel Networks.
QUALCOMM Signs CDMA Test Equipment License Agreement
with Willtech
SAN DIEGO, Oct. 5, 1998 -- QUALCOMM Incorporated today announced that
it has signed a royalty-bearing license agreement for Code Division Multiple
Access (CDMA) test equipment with Willtech Incorporated of Korea. Under terms
of the agreement, QUALCOMM granted Willtech a license to design and develop
test equipment based on QUALCOMM's cdmaOne™ technology.
"The rapid growth of cdmaOne networks around the world provides Willtech
with the potential to significantly increase market share for their digital
wireless test equipment," said Steve Altman, executive vice president and
general manager of QUALCOMM's Technology Transfer Division.
"Willtech has been working with some of the major CDMA service providers
to optimize the quality of CDMA networks," said Bu-kwan Chang, CEO of Willtech."With
the agreement, Willtech is looking forward to continuing its contributions to
CDMA technology with the development of third-generation products and expansion
of CDMA systems in Korea as well as worldwide. Willtech is very excited to be
working with QUALCOMM and hopes to continue to strengthen the business relationship
in the years to come."
