Qualcomm Incorporated (NASDAQ: QCOM), a wireless communications leader and the developer of Code Division Multiple Access(CDMA) technology, today announced that it has been awarded a contract valued at $US 24 million by JSC Sviazinform Chelyabinsk Region of the Russian Federation. The multi-year contract is for the supply of Qualcomm's CDMA digital cellular and wireless local loop infrastructure, phones, network planning and installation services.
Under the terms of the contract, Qualcomm will plan and install a digital wireless local loop CDMA system in Chelyabinsk, a large industrial center in the southeastern Ural Region of Russia with a population of approximately four million. The multi-phased deployment will commence immediately with system certification, followed by commercial implementation in several phases. Qualcomm's system will enable the Russian carrier to provide its customers with the advantages of CDMA, such as enhanced voice quality, clarity and privacy.
"Russia has recognized the positive correlation between telecommunications growth and economic prosperity," said Chris Simpson, senior vice president and general manager of Worldwide CDMA Sales for Qualcomm. "Russia can utilize CDMA wireless systems to rapidly expand their telephone and mobile services from the same platform, at a fraction of the cost of traditional wireline infrastructure. Our system will deliver basic telephone service to customers who would not otherwise have access to telecommunications services. We welcome the opportunity to work closely with Sviazinform, Chelyabinsk Region to help further the Russian telecommunications environment."
"The success of this project is vital to our telecommunications expansion plans in Russia," said Anatoliy Y. Ufimkin, general director of JSC Sviazinform Chelyabinsk Region. "We chose Qualcomm because we believe it is the most qualified supplier, having successfully designed and developed CDMA."
CDMA systems provide greater capacity, using less spectrum and power than competing technologies. Qualcomm's QCTel CDMA-based wireless local loop system provides system operators with rapid deployment, larger coverage area, larger capacity and lower operating and maintenance costs. In addition, QEDesign network planning software will be used in the Russian system to ensure accurate and timely network design and implementation.
Qualcomm will also provide its wireless local loop phones for the contract. These phones are designed to look and work like a landline telephone, but they connect to the public telephone network through a wireless link. The phones can be used with either a small indoor antenna or an outdoor panel antenna, depending on the coverage at the subscriber's location.
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.
Except for the historical information contained herein, this news release contains forward-looking statements that are subject to risks and uncertainties, including timely product development, change in economic conditions of the various markets the Company serves, as well as the other risks detailed from time to time in the Company's SEC reports, including the report on Form 10-K for the year ended September 24, 1995 and mostrecent Form 10-Qs.###