SAN DIEGO -- December 1, 2000 -- Qualcomm Incorporated (Nasdaq: QCOM), pioneer and world leader of Code Division Multiple Access (CDMA) digital wireless technology and chipset solutions, today applauded AT&T Wireless' decision to embrace CDMA technology and deploy third-generation (3G) WCDMA networks beginning in 2002 with rapid expansion thereafter.
"AT&T's plans represent a long-awaited decision in favor of CDMA technology by another leading U.S. operator," said Dr. Paul E. Jacobs, executive vice president of Qualcomm. "We are pleased that AT&T customers will be able to enjoy the benefits of CDMA which include crystal clear voice quality, fewer dropped calls, enhanced security and high-speed, wireless Internet access at unprecedented speeds in the future."
Qualcomm has essential patents for the WCDMA standard and has now licensed some or all of its essential patents to more than 30 companies to manufacture WCDMA equipment. Each licensed manufacturer has agreed to pay Qualcomm the same royalty for WCDMA as that licensed manufacturer is paying for other CDMA standards, including cdmaOne™ and cdma2000. Some of the companies now licensed to manufacture WCDMA equipment include Ericsson, Fujitsu, Hitachi, Hyundai, Kyocera, LG, Lucent, Matsushita, Motorola, NEC, Nortel, Philips, Samsung, Sanyo, Sharp, Sony, Toshiba and other Japanese and Korean licensees expected to be announced shortly.
"As an increasing number of wireless carriers around the world migrate from legacy networks to CDMA-based 3G systems, the total addressable market for CDMA will expand and Qualcomm will benefit in a variety of ways, including through a growing royalty stream," said Steve Altman, executive vice president of Qualcomm and president of Qualcomm Technology Alliances. "Just within the past six months, many manufacturers, including NEC, Fujitsu, Kyocera, Toshiba, Sanyo, Sharp, Agilent and others preparing to participate in the WCDMA market, have entered into multi-million dollar WCDMA amendments to existing royalty bearing license agreements with Qualcomm. We expect that other manufacturers interested in participating in the 3G CDMA market will also wish to quickly enter into or extend their existing licenses with Qualcomm."
Qualcomm is developing WCDMA chipsets (the MSM5200™ and CSM5200™) and system software for WCDMA phones and infrastructure equipment that support the third-generation Universal Mobile Telecommunications System (UMTS). Additionally, Qualcomm is shipping its MSM5000™ and CSM5000™ chipsets and system software to South Korean manufacturers in support of the world's first commercial 3G networks utilizing cdma2000 1x technology. Qualcomm also recently announced the MSM5500™ chipset and system software solution that supports 1xEV and cdma2000 1x. Qualcomm's 3G product offerings meet the requirements of IMT-2000. cdma2000 1x supports data rates up to 307 kbps and 1xEV (HDR) supports data rates up to 2.4 Mbps.
"Qualcomm looks forward to the opportunity to supply WCDMA chipsets to manufacturers supporting AT&T's WCDMA deployment," said Don Schrock, president of Qualcomm CDMA Technologies. "Our industry-leading, advanced chipset solutions will enable CDMA manufacturers to offer powerful and cost-efficient wireless products for AT&T's customers."
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; digital cinema systems; and 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 90 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, including 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 24, 2000, and most recent Form 10-Q.