SAN DIEGO -- March 16, 2001 -- Qualcomm Incorporated (Nasdaq: QCOM), pioneer and world leader of Code Division Multiple Access (CDMA) digital wireless technology, today announced it has published a white paper titled "The Economics of Wireless Mobile Data." The paper analyzes the cost to deliver wireless data over various 2.5G and 3G technologies. The paper concludes that the network cost to deliver one megabyte of wireless data will fall from several U.S. dollars with 2G technologies to approximately US$.02 with 3G CDMA technologies, enabling the economic provisions of a broad range of new wireless services.
These favorable economics combined with existing and new compelling applications, high data rates and improved data devices, are expected to promote a rapid increase in mobile data, nearing the usage levels of today's wireline Internet. Qualcomm believes wireless mobile average data volumes are poised to exceed 200 megabytes per user per month by the year 2006, which will surpass wireline usage levels in 1999, when wireline usage was estimated to be nearly 200 megabytes per user per month (based on AT&T® Labs - Research, Internet growth: Is there a "Moore's Law" for data traffic?, July 2000, and The size and growth rate of the Internet, Coffman&Odlyzko, October 1998). Accordingly, Qualcomm believes operators must select and deploy the most efficient 3G solution, in a timely manner, to be competitive.
"Qualcomm has demonstrated that all 3G CDMA technologies provide a significantly better economic picture than alternative 2.5G and 3G technologies," said Anthony Thornley, executive vice president and chief financial officer of Qualcomm. "cdma2000 1x and cdma2000 1xEV should provide the quickest time-to-market, lowest cost for voice and data, breadth of services and return on investment to the operator of any 3G technology."
The white paper is available on the Company's Web site at
http://www.qualcomm.com/common/documents/white_papers/WirelessMobileData...
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 CDMA integrated circuits and system software; technology licensing; the Binary Runtime Environment for Wireless™ (BREW™) applications development platform; Eudora® e-mail software; 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 100 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 deployment costs and usage of wireless data products and services in the future, the Company's ability to successfully design and have manufactured significant quantities of CDMA components supporting cdma2000 1x, 1xEV and WCDMA technologies 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.
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