Qualcomm Incorporated (NASDAQ:QCOM) and TELITAL S.r.l., today announced that they have signed a worldwide multi-million dollar royalty bearing handset license agreement. Under the agreement TELITAL can use Qualcomm's Code Division Multiple Access (CDMA) technology to design, develop, manufacture, and sell portable and fixed handsets for use within the Globalstar satellite communications system.
Qualcomm and TELITAL have also signed a multi-million dollar development subcontract for TELITAL to design and manufacture pre-production Globalstar/GSM dual-mode handsets. These Globalstar handsets will utilize Qualcomm's CDMA air interface while supporting Global System for Mobile Communications (GSM) features over the Globalstar satellite constellation. The handsets will be able to switch automatically from the Globalstar satellite network to terrestrial GSM networks when in metropolitan areas.
"Qualcomm is very pleased to license our CDMA technology to another Europeanmanufacturer," said Jerry Beckwith, president of Qualcomm's Communications System Division. "Qualcomm is excited to work with TELITAL as part of the consortium of manufacturers supplying products for the Globalstar system. We are relying on TELITAL's GSM expertise and experience in providing engineering services, development and manufacturing to incorporate Qualcomm's CDMA technology with TELITAL's GSM technology into a Globalstar/GSM dual-mode handset."
"TELITAL is proud to have been selected over major competition for the development of the Globalstar/GSM dual-mode handset," said Massimo Zanzi, president of TELITAL. "This is a remarkable opportunity to participate in the development of the Globalstar system. We see this as the beginning of a close collaboration with Qualcomm, as well as an opportunity to license their CDMA technology."
Globalstar consists of a 48 low-Earth orbit (LEO) satellite constellation, gateways, fixed and mobile handsets, that provides wireless high quality crisp digital voice, data, fax, paging, and position location services to customers around the World. Globalstar expects to begin commercial operations in the second half of 1998.
Headquarterd in Trieste, Italy, TELITAL is a private company working in the telecommunications field. The company started in 1986, and is now a leader in the Italian telecommunications market. TELITAL has experience in the design, development and production of telephony products for European and International markets.
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, 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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