Qualcomm Incorporated (NASDAQ: QCOM) today announced that it has signed a multi-million dollar, worldwide royalty-bearing subscriber equipment license with NIPPONDENSO Co. Ltd. The license allows NIPPONDENSO to manufacture and sell subscriber products based on Qualcomm's Code Division Multiple Access (CDMA) technology.
"This agreement allows NIPPONDENSO, a major Japanese manufacturer and worldwide automotive component supplier, to build CDMA subscriber products and offer innovative wireless products for the automotive and other industries," said Dr. Irwin M. Jacobs, chairman and CEO of Qualcomm Incorporated. "NIPPONDENSO's commitment to developing CDMA products is one more affirmation of CDMA's broadening worldwide acceptance. We look forward to a productive working relationship," Jacobs continued.
NIPPONDENSO of Japan, an affiliate of the Toyota Group, is a leading worldwide supplier of automobile components and products. Its wireless communications business unit, NIPPONDENSO OF LOS ANGELES INC., plans to develop CDMA handsets at the company's research and development facility in Carlsbad, CA. According to Marbo Higuchi, vice president of Sales and Marketing/Wireless Communications for NIPPONDENSO OF LOS ANGELES INC., "In the future, integration of automobile information and wireless communications will become reality."
CDMA is a spectrally efficient technology that provides greater system capacity and coverage, improved voice quality, background noise suppression and lower power. These characteristics benefit both network operators and subscribers by offering better service with fewer cell sites and maintenance requirements.
NIPPONDENSO Co. Ltd. is a leading worldwide supplier of automotive components and products for the automobile manufacturers, as well as digital communication products. As of 1994, NIPPONDENSO had total sales revenue of US$14.1 billion, with 56,000 employees and operations in 21 countries. In 1989, the wireless communications business unit was established at NIPPONDENSO headquarters in Kariya, Japan. Today, NIPPONDENSO is one of Japan's leading wireless subscriber terminal manufacturers.
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.