Qualcomm Incorporated (NASDAQ: QCOM), today announced the signing of a multi-year contract with JSC Personal Communications of Moscow, Russian Federation to supply a Code Division Multiple Access (CDMA) wireless communications system which could lead to an increase in capacity to serve up to 300,000 subscribers in the Greater Moscow Area starting with 100,000 subscribers initially.
"JSC Personal Communications has made a strategic decision by choosing CDMA from Qualcomm, which will provide the most modern, cost-effective and quality services to its customers in the greater Moscow area," said Dr. Irwin M. Jacobs, chairman and chief executive officer of Qualcomm. "This represents a significant recognition of the growing global acceptance and deployment of CDMA systems, especially in Eastern Europe."
JSC Personal Communications is a subsidiary of MTU-Inform. With 70,000 lines, MTU-Inform is the second-largest local telephone operator in Moscow. Under terms of the contract, Qualcomm will supply its CDMA digital wireless infrastructure equipment, network planning and installation services.
In the course of the project implementation, MTU-Inform plans to provide their subscribers in the Moscow area with a wide range of services, which are based on CDMA technology along with the capacities of the MTU-Inform digital network. Qualcomm will plan, design and install a digital wireless CDMA network in the Greater Moscow Area. The multi-phased deployment will begin in early 1997 with the first phase entering commercial implementation by mid-1997. Qualcomm's network will enable JSC Personal Communications to provide its customers with the unique advantages of CDMA technology such as including enhanced voice quality, clarity and privacy.
CDMA systems provide greater capacity, using less spectrum and power than competing older technologies. Qualcomm's 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, 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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