Qualcomm Incorporated (NASDAQ: QCOM) today announced Sprint PCS, one of the largest Personal Communication Services (PCS) providers in the U.S., has signed an agreement valued at over $50 million for the purchase of Qualcomm's Code Division Multiple Access (CDMA) digital PCS Q™ phones. The agreement provides Sprint PCS with Q phones for distribution throughout Sprint PCS™ nationwide CDMA digital network. Shipments are scheduled to begin this summer.
Sprint PCS chose Qualcomm's palm-sized Q phone for its unique design, enhanced feature set, and the established performance qualities of CDMA, including crystal clear voice quality and enhanced security. The phones will be co-labeled with the Qualcomm and Sprint brands. Sprint PCS will distribute Qualcomm's Q phone to customers through Sprint PCS retail stores and direct sales channels, as well as major retail and electronics stores. In addition, Sprint PCS™ launch of Qualcomm's Q phone will be supported via Qualcomm's multi-million dollar national television, radio and print advertising campaign.
"Sprint chose CDMA to provide the highest quality wireless service to their customers," said Paul E. Jacobs, president of Qualcomm's Subscriber Products Division. "In choosing the Q phone, Sprint PCS will continue to provide that quality of service in the palm-sized package that consumers have been anticipating since the launch of PCS."
"The Q phone from Qualcomm delivers what everyone thought was two or three years away the smallest folding phone with the technology that offers the best voice clarity, CDMA," said Andrew Sukawaty, chief executive officer of Sprint PCS. "We believe the Q phone, combined with our expanding nationwide PCS network, will make our fall line-up of products unbeatable for our retailers and customers."
Qualcomm's CDMA digital PCS Q phone is the sleek new palm-sized folding phone that features a wide variety of options to provide users the utmost in flexibility. Automatic call answer enables users to respond to a call by simply opening the phone. For those who prefer caller ID, users may opt to have the phone display the incoming number upon opening and choose to answer with a single touch of a button. The ergonomically designed Q phone also offers users short messaging service and voice mail alert, as well as programmable ringers and a choice of call alerts, including a new vibration mode that silently notifies users of a call or page.
The Q phone complements Qualcomm's entire family of advanced CDMA digital phones, including the QCP series of cellular and PCS portable phones and the QCT series of cellular and PCS fixed wireless phones. The hallmarks of every Qualcomm CDMA digital phone include crystal clear voice quality, enhanced privacy and fewer dropped calls.
The Sprint PCS system will be the most extensive in the U.S. When the first phase of launch is complete, the Sprint PCS network will encompass 65 cities coast to coast, including 35 of the top 50 U.S. metropolitan areas. In phase two, Sprint PCS, together with its affiliates, will expand its existing service coverage to provide services under licenses recently acquired by Sprint Corporation in spectrum auctions conducted by the FCC. These new licenses, when combined with Sprint PCS™ and its affiliate's licenses, will give Sprint PCS unprecedented licensed coverage of nearly 260 million people in all 50 states, Puerto Rico and the U.S. Virgin Islands. Sprint PCS is a partnership of Sprint Corporation, Tele-Communications, Inc. (TCI), Cox Communications, Inc. and Comcast Corporation.
Headquartered in San Diego, Qualcomm develops, manufactures, markets, licenses and operates advanced communications systems and products based on its proprietary digital wireless technologies. Qualcomm'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 Qualcomm 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 Qualcomm'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, continued growth in the CDMA subscriber population and the scale up and operations of CDMA systems, Qualcomm's ability to successfully manufacture significant quantities of CDMA or other equipment on a timely and profitable basis, change in economic conditions of the various markets Qualcomm serves, as well as the other risks detailed from time to time in Qualcomm'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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Qualcomm, OmniTRACS and Eudora are registered trademarks and Q Phone and Eudora Pro are trademarks of Qualcomm Incorporated. Globalstar is a trademark of Globalstar, L.P. All other trademarks are the property of their respective owners.
August 19, 1997August 19, 1997Sprint PCS Awards Contract Valued at over $50 Million to Qualcomm for thePurchase of New CDMA Digital PCS Q™ PhoneSprint PCS Awards Contract Valued at over $50 Million to Qualcomm for thePurchase of New CDMA Digital PCS Q™ Phone