SAN DIEGO -- July 12, 2000 -- Qualcomm Incorporated (Nasdaq: QCOM), pioneer and world leader of Code Division Multiple Access (CDMA) digital wireless technology, today issued the following statement concerning the introduction of third-generation (3G) IMT-2000 wireless technology based on CDMA.
"Qualcomm fully supports the rapid introduction of 3G CDMA technology, regardless of mode, in the new IMT-2000 frequency bands as well as in existing cellular and PCS frequency bands in all regions of the world," said Dr. Irwin Mark Jacobs, chairman and CEO, Qualcomm. "By 2003, the Company expects one billion digital wireless subscribers in the world, the majority using GSM with CDMA second. For the next billion subscribers, the Company expects CDMA to be the dominant 3G standard. The principal 3G modes, WCDMA and cdma2000, incorporate Qualcomm's pioneering CDMA inventions, and are designed to provide efficient voice and wireless Internet access, which we believe will be the next large growth area for wireless networks. Both CDMA modes represent revolutionary departures from the TDMA-based technologies used over the past decade, including GSM."
"The transition to 3G CDMA has now started in existing spectrum. Although technology choices for the IMT-2000 spectrum remain open, two of Korea's largest operators, SK Telecom and KT Freetel, are preparing to launch the world's first commercial 3G services by using cdma2000 to upgrade their existing networks. By the end of 2001, 3G services will be widely available, since most cdmaOne™ operators around the globe plan similar transitions to cdma2000 next year. Given the anticipated growing demand for wireless Internet access, we expect that operators utilizing non-CDMA wireless technologies will make substantial new investments in 3G CDMA over the next several years. cdma2000 readily supports overlays in existing spectrum. For international roaming, phones supporting multiple technologies for operation in all regions will become increasingly available at low cost. Several operators are conducting trials of Qualcomm's HDR technology which efficiently supports mobile and fixed Internet access up to 2.4 Mbps. HDR is now in the 3G standards process and the basis for 1xEvolution (1xEV)."
"Qualcomm continues to expand its substantial portfolio of CDMA patents, including many patents essential to the deployment of any commercially viable CDMA mobile system. Qualcomm has now extended many of its license agreements to cover all 3G modes. Under these agreements, a licensee pays the same royalty rate to Qualcomm for WCDMA and cdma2000 equipment as for cdmaOne infrastructure, phones, semiconductors and other equipment. Companies with licenses for WCDMA include Samsung, Lucent, Ericsson, Nortel, Hyundai, LG, Sony, Hitachi, ALPS, Matsushita, Maxon, OKI and Philips."
"Although we support all modes, Qualcomm believes that cdma2000 provides a more capable, spectrally efficient, timely, lower risk and lower cost path to all 3G services. Relatively small changes (i.e., chips and software upgrades) are required to existing commercial infrastructure and subscriber equipment to incorporate cdma2000 technology, and the chipsets are currently in the hands of manufacturers. Although Qualcomm supports all modes of 3G CDMA, the Company believes that carriers deploying cdma2000 technology have a major economic and time to market advantage over carriers deploying WCDMA. Therefore, we will continue to examine opportunities to invest in carriers where the competition has not elected to use cdma2000."
"Qualcomm supports both cdma2000 and WCDMA modes with chipsets and system software. The Company plans to focus on multi-mode, multi-band, multi-network capabilities as these future market requirements develop. Drawing on Qualcomm's unequalled experience in supplying the highest quality and most reliable CDMA chipsets with extensive features, the Company is now shipping cdma2000 chipsets to manufacturers and expects to begin sampling its WCDMA chipsets and system software in 2001."
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; satellite-based systems including portions of the Globalstar™ system and wireless fleet management systems, OmniTRACS® and OmniExpress™. Qualcomm owns patents that 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 2000 FORTUNE 500® company traded on The Nasdaq Stock Market® 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, the Company's ability to successfully design and have manufactured significant quantities of CDMA components on a timely and profitable basis, the extent and speed to which CDMA is deployed, 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.