Qualcomm Incorporated (NASDAQ: QCOM), a wireless communications leader and the developer of Code Division Multiple Access (CDMA) technology, today announced that it has been selected by JSC Personal Communications of Moscow, Russian Federation to supply a CDMA wireless communications system with the capacity to serve up to 300,000 subscribers. Negotiations of the definitive, multi-year contract areunderway and will cover the supply of Qualcomm's CDMA digital mobile and wireless local loop infrastructure equipment, network planning andinstallation services.
JSC Personal Communications is a subsidiary of MTU-Inform. With 70,000 lines, MTU-Inform is the second largest local telephone operator in Moscow.
Qualcomm will plan and install a digital mobile and wireless local loop CDMA system in Moscow Oblast and Moscow. The multi-phased deployment will begin in early 1997 with the first phase entering commercial implementationby mid-1997. Qualcomm's system will enable JSC Personal Communications to provide its customers with the advantages of CDMA, including enhanced voice quality, clarity and privacy.
"We are very pleased to work closely with JSC Personal Communications to provide the most advanced digital wireless system to serve the Moscow region," said Dr. Irwin M. Jacobs, chairman and chief executive officer of Qualcomm. The Qualcomm advanced CDMA infrastructure system will provide the most modern and cost effective services to customers of JSC Personal Communications."
"The aim of this project is to provide the population of Moscow Oblast with the highest quality digital telephony and new services," said Alexander N.Gromov, director general for MTU-Inform. "There is a very high demand for telephones in the Oblast, and CDMA wireless local loop technology will be an optimal solution. Qualcomm has been selected after a tender in which all leading vendors of CDMA equipment participated. JSC Personal Communications sincerely believes that cooperation with Qualcomm, the pioneer of CDMA technology, will be the most effective way to achieve the goals of JSC Personal Communications to provide the best service to its customers."
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 costs. In addition, QEDesign™ network planning software will be used in the Russian system to ensure accurate and timely network design and implementation.
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, inconjunction with others, the development of the Globalstar™ low-earth-orbit (LEO) satellite communications system. Other Company products include the Eudora Pro™ electronic mail software, ASIC products, and communications equipment and systems for government and commercial customers worldwide. For more information on Qualcomm products and technologies, please visit the Company's web site at http://www.qualcomm.com.
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 and commercial implementation of the Company's CDMA technology, continued growth in the CDMA subscriber population and the scale up and operations of CDMA systems, timing and receipt of license fees and royalties, the Company's ability to successfully manufacture significant quantities of CDMA or other equipment on a timely and profitable basis and those related to performance guarantees, 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 29, 1996 and most recent Form 10-Qs.
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