Qualcomm Incorporated (NASDAQ:QCOM) today announced signing of an agreement with Rostov Electrosviaz of Rostov, Russia, to supply $5.8 million in 800 MHz Code Division Multiple Access (CDMA) fixed wireless local loop infrastructure equipment and services. Qualcomm's CDMA system will be deployed in the Russian region of Rostov-on-Don and surrounding cities and provide advanced wireless telecommunications service to over 20,000 subscribers.
"By choosing Qualcomm to supply its CDMA system, Rostov Electrosviaz has joined other Russian operators in choosing Qualcomm, the developer of CDMA technology, to deploy their CDMA systems. Qualcomm's advanced system architecture coupled with our new, in-country office and support team will prove to be a successful combination as the system begins commercial service later this year," said John Major, president of Qualcomm's Infrastructure Products Division.
Under the terms of the contract announced at the Asia Telecom Exhibition, Qualcomm will provide Rostov Electrosviaz with $5.8 million in 800 MHz base station and base station controller equipment and network planning services. With the signing of this contract, Rostov Electrosviaz has agreed to purchase from Qualcomm all CDMA infrastructure equipment and services required for their expanding network over the next five years. The system is scheduled to be deployed immediately, and will begin providing commercial service by October 1997, with features such as call forwarding, call transfer, call waiting and voice mail service.
Qualcomm's CDMA wireless local loop systems, which provide voice quality similar to that of wireline, can be rapidly deployed and easily expanded, even in diverse terrain and weather conditions. In addition to this new agreement, Qualcomm also has contracts to deploy CDMA wireless local loop systems in Chelyabinsk and the Moscow region, supporting over 300,000 subscribers.
Currently, the Rostov region has over four million people, of which more than 100,000 are waiting for fixed phone service. The waiting list for customers interested in telephone service is eight years.
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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