SAN DIEGO - July 13, 1998 - Qualcomm Incorporated (NASDAQ: QCOM) todayannounced it has signed an agreement with Pegaso PCS, S.A. de C.V., awholly owned subsidiary of Pegaso Telecomunicaciones, S.A. de C.V, tosupply approximately $650 million of infrastructure equipment anddeployment services in Mexico over the next three years. Purchase ordersfor more than $200 million in equipment and services have already beenreceived, representing phases one and two of Pegaso PCS' nationwidecdmaOne™ (IS-95 Code Division Multiple Access) network deployment inMexico. The equipment purchased will be financed by Qualcomm undercommercial terms yet to be finalized.
"We are pleased to have reached an agreement with Pegaso PCS to provide 100percent of all CDMA infrastructure equipment and deployment services fortheir nationwide network," said Thom Degnan, vice president of sales andmarketing, Latin America, for Qualcomm's Wireless Infrastructure Division."With the bid for a nationwide license to provide PCS services in Mexiconow successfully completed, we are excited to be moving quickly to ensurethe launch of commercial services early next year."
Pegaso Telecomunicaciones, formed by a consortium led by Qualcomm and GrupoPegaso, will also wholly own Pegaso Comunicaciones y Sistemas, which wasrecently awarded nine 1900 MHz licenses to provide mobile PCS and wirelesslocal loop (WLL) services throughout Mexico. The consortium is currentlyin final discussions with other companies to expand the partnership.
"Qualcomm's proven ability to maximize the performance of CDMA technologyacross its broad CDMA product portfolio will provide cost savings andhardware efficiencies for our operation in both the initial networkdeployment and over the long term," said Manuel G-mez-Ortigoza, executivedirector of Pegaso Telecomunicaciones. "This agreement reflects thesuccess that Qualcomm, Grupo Pegaso, and now Pegaso Telecomunicaciones havehad and will continue to achieve by working closely together to bringcost-effective, high-quality telecommunications services to the Mexicanmarket."
"This agreement represents the next concrete achievement for Qualcomm inexpanding our presence as a wireless systems provider in Latin American,"said Jim Edson, regional vice president of infrastructure operations, LatinAmerica, for Qualcomm's Wireless Infrastructure Division. "With currentoperations and deployments in Chile, Brazil and now Mexico, we have firmlyestablished Qualcomm's products and technology as a real choice for leadingLatin American service providers."
The nationwide CDMA networks will utilize Qualcomm's QCell™ 1900 MHz basestations and QCore™ switch and base station controller products, which arefully scaleable for simple and cost-effective capacity expansion.Qualcomm's products optimize cdmaOne technology to its greatest potential,providing high-performance networks to operators all over the world.Qualcomm networks are fully data-capable, offering consumers the ability toaccess e-mail, browse the World Wide Web and transmit faxes using theirCDMA digital wireless phones.
Qualcomm will provide complete turnkey deployment services to Pegaso PCS,managing each stage of the network planning, installation, commissioning,optimization and commercial launch of the system. In addition, Qualcommwill provide program management and technical training services to ensure asmooth handoff to Pegaso PCS for commercial operation. The network will bedesigned and deployed using Qualcomm's comprehensive network planning anddeployment tool, QEDesign™ resulting in highly accurate andresource-efficient radio network designs.
Headquartered in San Diego, Qualcomm develops, manufactures, markets,licenses and operates advanced communications systems and products based onits proprietary digital wireless technologies. The Company's primaryproduct areas are the OmniTRACS® system (a geostationary satellite-based,mobile communications system providing two-way data and position reportingservices), 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 theEudora Pro® electronic mail software, ASIC products, and communicationsequipment and systems for government and commercial customers worldwide.For more information on Qualcomm products and technologies, please visitthe Company's web site athttp://www.qualcomm.com.
Except for the historical information contained herein, this news releasecontains forward-looking statements that are subject to risks anduncertainties, including timely product development and commercialimplementation of the Company's products, as well as the other risksdetailed from time to time in the Company's SEC reports, including thereport on Form 10-K for the year ended September 28, 1997 and most recentForm 10-Q.
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Qualcomm, OmniTRACS, Eudora Pro and QEDesign are registered trademarks ofQualcomm Incorporated. QCore and QCell are trademarks of QualcommIncorporated. Globalstar is a trademark of Loral Qualcomm SatelliteServices, Incorporated. cdmaOne is a registered trademark of the CDMADevelopment Group.