< Prev   |   Next >

leading in innovation
We have increased our R&D investment year-over-year to capitalize on the opportunities afforded by the accelerating transition to 3G and the increasing industry focus on the use of wireless devices for entertainment, productivity and computing, in addition to traditional voice communications.

Data usage is contributing new and valuable revenue streams to operators, and this trend is increasing the demand for even higher data rates. We continue to evolve our technology to enable increased speeds and functionality for advanced 3G systems. EV-DO, the high-speed data evolution of CDMA2000®, is already widely available, and more than 120 EV-DO device models are now being sold in South Korea, Japan and the Americas.

We recently announced DMMX™ (DO Multicarrier Multilink eXtensions), our platform for driving the EV-DO road map through the end of the decade. Part of our DMMX strategy is to be both the leading supporter of the standards-based enhancements to EV-DO technology (Revision A and Revision B), and the leader in implementing other enhancements that significantly improve system performance but don’t require changes to standards.

These developments will open the door to mobile voice over Internet protocol (VoIP) services and very low-latency applications such as push-to-talk. With DMMX, phones will operate in a concurrent “multilink” manner with multiple radio technologies (or links) while simultaneously receiving and transmitting at multiple frequencies (or “multicarrier”). MediaFLO is a good example of DMMX, because audio and video transmissions over cellular networks (using EV-DO or HSDPA) can be seamlessly combined with transmissions received using the FLO™ technology operating in separate spectrum. The goal is to enable our operator partners to provide a superior multimedia experience at the lowest possible cost.

On the WCDMA side of 3G, we are leading the development of HMMX™ (HSDPA Multicarrier Multilink eXtensions). We continue to provide our WCDMA customers and partners with products that support higher data rates through our High-Speed Downlink Packet Access (HSDPA) and High-Speed Uplink Packet Access (HSUPA) solutions. Through these solutions, they in turn can provide their customers with enhanced multimedia and IP-based data capabilities including multicasting.

Additionally, we continue to focus on Orthogonal Frequency Division Multiplexing (OFDM) technologies for mobile broadband Internet protocol-based (IP) services. Our internal development efforts in OFDM and MIMO (multiple input, multiple output) technologies led to DO Platinum Multicast, which is part of the EV-DO standard, and FLO, our dedicated multicasting air interface technology which is part of the MediaFLO System.

Note: The Company effected a two-for-one stock split in August 2004.
All references to per share data have been adjusted to reflect the split.


< Prev   |   Next >