Press Release

Qualcomm's New Global SmartRate Feature Offers Variable Rate Vocoding to Maximize CDMA Network Capacity

Sep 16, 1998SAN DIEGO

Qualcomm products mentioned within this press release are offered by Qualcomm Technologies, Inc. and/or its subsidiaries.

SAN DIEGO -- September 16, 1998 -- Qualcomm Incorporated (NASDAQ: QCOM) today announced the Global SmartRate™ software feature for Qualcomm cdmaOne™ (IS-95 Code Division Multiple Access) networks. The Global SmartRate feature offers operators the ability to immediately boost overall network capacity to respond to unexpected surges in network traffic.

"Qualcomm continues to demonstrate its leadership in developing advanced features for cdmaOne networks that respond to dynamic market conditions. In listening to our customers' experiences in managing network traffic, we recognized that even well-planned networks can suffer unexpected spikes in traffic levels and that operators need to be able to respond immediately to relieve congestion," said John Major, president of Qualcomm's Wireless Infrastructure Division. "As a result, we are offering the Global SmartRate feature on our QCore™ platform, which allows carriers to instantly maximize the capacity of their networks during a particular week, day or hour."

Many carriers differentiate their services in the marketplace based on CDMA technology's key advantages, including: superior voice clarity and high capacity. Voice quality and capacity in a CDMA network enable operators to maximize each area of performance based on their particular network requirements. Most CDMA networks today use a 13 Kbps vocoding rate, which provides exceptional, landline-like voice quality.

Major events such as political conventions, sporting events or even natural disasters can cause traffic surges that temporarily exceed an operator's planned network and affect performance of the system. The Global SmartRate feature allows operators to temporarily boost capacity on their system by instantly altering the systemwide vocoding rate, thereby taking full advantage of the relationship between voice quality and capacity. With the Global SmartRate feature, operators can fine-tune their response to temporary spikes in traffic, while directing expansion revenues to areas of the network where true capacity increases are required on an ongoing basis.

The Global SmartRate feature offers multiple vocoding rates between 8 Kbps and 13 Kbps, allowing the network administrator to hike overall system capacity to the precise level needed immediately, or for a specific duration in the future. Once activated, the feature takes effect on all new voice calls until it is deactivated, without affecting data throughputs. The Global SmartRate software feature is implemented on the QCore switching and base station controller platform, and does not require new infrastructure or handset equipment.

Qualcomm's Global SmartRate solution closes the gap between current carrier needs and widespread deployment of a new industry-standard feature called EVRC (Enhanced Variable Rate Coder). The IS-127 EVRC standard is also supported by Qualcomm's network infrastructure and allows operators to provide higher voice quality at lower vocoding rates to increase overall network capacity on a permanent basis. However, this feature requires new EVRC-capable handsets, which are not widely available or broadly deployed today. The Global SmartRate feature on the other hand, does not require new or upgraded handsets and can be used immediately with today's 13 Kbps-compatible CDMA handsets.

Commercial availability of Qualcomm's Global SmartRate feature is expected in early 1999.

Headquartered in San Diego, Calif., 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

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, 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 28, 1997 and most recent Form 10-Q.

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