NEW ORLEANS -- February 28, 2000 -- Qualcomm Incorporated (NASDAQ: QCOM) and Lucent Technologies (NYSE: LU) today announced an extension of their alliance to commercialize next-generation wireless technology with an agreement to also develop Qualcomm's High Data Rate (HDR) solution for broadband wireless data communications based on the Internet Protocol (IP).
The agreement follows one announced last fall to jointly bring to market a third generation (3G) system enhancement for increasing the capacity and data capabilities of Lucent's network equipment based on one of the fastest growing global digital wireless technologies, Code Division Multiple Access (CDMA). Field demonstrations of the 3G technology, called cdma2000-1x are scheduled in mid-2000.
Qualcomm and Lucent will work with CDMA carriers worldwide to gain input and review the merits of the HDR option. The resulting proposal will be presented for standardization under the cdma2000-1x umbrella. Its key attraction to network operators is that it is operates within standard CDMA radio frequency carriers, but is optimized for high-speed data based on standard IP. This enables network operators to use existing equipment to complement their voice service with very high-speed mobile Internet services, including mobile multimedia web browsing. The specified peak rate of 2.4 Megabits per second (Mbps) data transfer meets or exceeds the 3G standard requirement established by the International Telecommunications Union (ITU).
"HDR is a complement to our commitment to help our customers jump-start into next-generation services while preserving their investment in CDMA," said Cindy Christy, vice president of product management for Lucent's cellular and PCS business. "Depending on market requirements, our customers will be able to manage growth and high-speed data requirements with cdma2000-1x, or pursue high-value revenue opportunities with an even faster data-optimized implementation of HDR. The real advantage for them is that HDR and cdma2000 share common network components in ourFlexent™ CDMA base station products, making systems like our CDMA Modular Cell and new MicroMini 5100 IP Internet-ready. Best of all, our customers can pursue both objectives within their current spectrum allocations."
"Lucent is a company with the vision, skills and network products to help operators manage current growth and plan for future services, while preserving current investments," said Jeff Jacobs, senior vice president of business development, Qualcomm. "Qualcomm and Lucent will offer flexible options to integrate innovations like HDR into existing networks, thus accelerating time-to-market for third generation voice and data services. HDR is a cost-effective way to deliver high bandwidth wireless Internet access. We look forward to working with Lucent to bring HDR to market to meet the increasing needs for wireless Internet access."
HDR provides a spectrally efficient 2.4 Mbps peak rate in a standard 1.25 MHz channel bandwidth for fixed, portable and mobile applications. Optimized for packet data services, HDR incorporates a flexible architecture based on standard IP. HDR is an evolution of CDMA technology with identical radio frequency characteristics as cdmaOne™ and cdma2000 1x. HDR supports e-mail, web browsing, mobile e-commerce, telematics and many other applications while offering end users continuous, untethered, always-on access to the Internet and next-generation data services.
Lucent Technologies supplies mobile and fixed wireless communications systems that offer global service providers standards-based solutions for serving the information needs of consumers and enterprises. Headquartered in Murray Hill, N.J., Lucent designs, builds and delivers a wide range of public and private networks, communications systems and software, data networking systems, business telephone systems and microelectronic components. Bell Labs is the research and development arm for the company. For more information on Lucent Technologies, visit the company's web site at http://www.lucent.com.
Qualcomm Incorporated (www.qualcomm.com) is a leader in developing and delivering innovative digital wireless communications products and services based on the Company's CDMA digital technology. The Company's business areas include integrated CDMA chipsets and system software; technology licensing; Eudora® email software for Windows® and Macintosh® computing platforms; and satellite-based systems including OmniTRACS® and portions of the Globalstar™ system. Qualcomm owns patents which are essential to all of the CDMA wireless telecommunications standards that have been adopted or proposed for adoption by standards-setting bodies worldwide. Qualcomm has licensed its essential CDMA patent portfolio to more than 75 telecommunications equipment manufacturers worldwide. Headquartered in San Diego, Calif., Qualcomm is included in theS&P500 Index and is a 1999 FORTUNE 500® company traded on the Nasdaq under the ticker symbol QCOM.
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, 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 26, 1999, and most recent Form 10-Q.