Qualcomm Incorporated (NASDAQ: QCOM), a leader in wireless communications and the developer of Code Division Multiple Access (CDMA) technology, will supply Northern Telecom (Nortel)with 1900 MHz digital infrastructure equipment and RF services as part of Nortel's $1 billion award by Sprint Telecommunications Venture (STV). Nortel's purchase of Qualcomm services and equipment for use in the STV PCS network is valued at approximately $200 million, and is contingent onsuccessful completion of financing with STV.
"Sprint Telecommunications Venture has selected CDMA as the best technology for its customers, and has selected Nortel/Qualcomm because of our excellent product architecture and CDMA network expertise," said Dr. Irwin M. Jacobs, chairman and CEO of Qualcomm. "This very significant award establishes the Nortel/Qualcomm CDMA system design and partnership as a major force in the personal communications industry."
Qualcomm has a strategic relationship with Nortel to jointly design, develop and manufacture complete CDMA networks for mobile and wireless local loop applications. Nortel will purchase part of its requirements for base station and base station controller equipment from Qualcomm for integration into turnkey CDMA systems covering STV's 17 Major Trading Areas(MTAs). These systems will provide advanced digital Personal Communications Services (PCS) to more than 60 million potential subscribers in the Southeastern and South Central United States. Qualcomm will also support Nortel's planning, design, testing and installation of the STV nationwide network.
"Nortel's award places Qualcomm firmly in the CDMA infrastructure business and allows us to fully launch our manufacturing capabilities," said Ron Foerster, senior vice president and general manager of Wireless Infrastructure Products for Qualcomm. "Our objective is to work closely with Nortel to ship equipment as STV acquires sites. This will help speed network build-out and meet STV's goal of offering service to its customers beginning in late 1996."
"The collaborative efforts of Nortel and Qualcomm ensures that STV's PCS network will define the state-of-the-art in CDMA wireless communications," said Tom Brewster, general manager for CDMA Systems for Nortel. "We look forward to continuing to work with Qualcomm to successfully build and deploy the STV nationwide network."
Headquartered in San Diego, Qualcomm develops, manufactures, markets, licenses and operates advanced communications systems and products based on its proprietary digital wireless technologies. The Company's primary product areas are the OmniTRACS® system (a geostationary satellite-based, mobile communications system providing two-way data and position reporting services), CDMA wireless communications systems and products and, in conjunction with others, the development of the Globalstar™ low-earth-orbit (LEO) satellite communications system. Other company products include the Eudora Pro™ electronic mail software, VLSI components, and communications equipment and systems for government and commercial customers worldwide.