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an unwavering commitment to research and development
Qualcomm’s strong and ongoing investment in research and development has been a cornerstone for the Company’s strategy from the very beginning. It has grown and prospered by developing and applying advanced technologies for wireless telecommunications products and services. And through internal growth, investment, widespread licensing, strategic partnerships and acquisition, Qualcomm remains committed to being the leader in the development of wireless technology far into the future.

an industry-enabling patent portfolio
The Company’s strong intellectual property position provides revenue to fund significant innovation, technology development and future growth. Our portfolio helps to solidify Qualcomm’s role as a leading contributor in the ongoing success of the wireless industry, fostering competition and spawning innovation.

Qualcomm Technology Licensing (QTL) grants licenses to use the Company’s intellectual property portfolio, which includes certain patent rights essential to (or useful in) the manufacturing, sale and/or use of CDMA-based products. QTL has licensed more than 130 wireless equipment manufacturers, over 60 of which include WCDMA. CDMA technology is synonymous with Qualcomm innovation and is the basis for 3G networks around the world.

Our patent portfolio is the most widely and extensively licensed portfolio in the industry. Achieved through bilat-eral, arm’s length negotiations and the operation of free market forces, the large number of Qualcomm license agreements have established the value of Qualcomm’s patent portfolio for 3G standards.

One reason behind the rapid global growth of 3G has been Qualcomm’s inclusive approach to doing business. By licensing a wide range of equipment manufacturers, encouraging innovative applications, supporting equipment manufacturers with a total solution, and focusing on making the airlink more efficient for operators, the Company has helped 3G CDMA evolve and grow at a faster pace than the second-generation technologies that preceded it.

a broad-based expertise
Through this collaborative approach, Qualcomm has helped drive wireless industry standards. The Company has consistently developed solutions that are backwards compatible, making it easier and less costly for operators to migrate and upgrade their legacy networks to 3G, while ensuring fast time to market for device designers and manufacturers.

Platform- and technology-agnostic in their approach to problem-solving, the engineers at Qualcomm are augmenting the Company’s core competencies in CDMA with a growing expertise in complementary wireless technologies, including OFDM.

Qualcomm’s strong investment in R&D has led to more than 4,000 U.S. patents and patent applications and more than 27,000 foreign filings. The Company’s broad licensing strategy has been a catalyst for industry growth, helping to create new competition while driving down average selling prices for 3G handsets and wireless devices.

Thanks in part to Qualcomm’s leadership, today’s wireless industry is robust and growing with 3G devices readily available from a broad base of manufacturers. Over the past decade, Qualcomm licensees have commercialized more than 1,000 phone models spanning many price points, providing operators with flexibility to meet customer demands.

Sources: Infrastructure Revenue, Average of Gartner Group (09/04) and Strategy Analytics (12/05)
Service Revenue, Strategy Analytics (08/05)
Handset Revenue Strategy Analytics (06/05)
CDMA/WCDMA Subscribers EMC (11/05)


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