SAN DIEGO -- August 16, 2001 -- Qualcomm Incorporated (Nasdaq: QCOM), pioneer and world leader of Code Division Multiple Access (CDMA) digital wireless technology, today announced a commitment to make a $300 million strategic investment in NextWave Telecom, which is currently deploying a CDMA2000 wireless network designed to provide high-speed wireless Internet access and voice communications services. Qualcomm's investment is in connection with the equity financing provided for in NextWave's plan of reorganization that was filed on August 6, 2001, and is subject to NextWave's successful consummation of its plan of reorganization.
In addition to the investment, Qualcomm and NextWave have entered into a Technology Cooperation Agreement under which Qualcomm will help facilitate NextWave's deployment of a next-generation, nationwide CDMA2000 1X/1xEV wireless network in the United States, and NextWave will commit to utilize CDMA2000 technology to provide next-generation broadband mobile data services to consumers and businesses. With data rates of up to 2.4 megabits per second, CDMA2000 will provide NextWave the ability to offer customers a wide range of next-generation mobile services, including full web access, video streaming, high- fidelity audio downloads, multimedia messaging, email and secure VPN access to corporate applications.
"Qualcomm continues to invest in companies that support the adoption of third-generation CDMA2000 1X/1xEV technologies," said Anthony Thornley, chief operating officer and chief financial officer of Qualcomm. "This commitment to invest in NextWave complements our existing investment portfolio of diverse and innovative wireless companies that are enabling and fostering CDMA wireless Internet services."
"Qualcomm's new investment in NextWave exemplifies the outstanding relationship that has existed between our companies since NextWave was founded," said Allen Salmasi, CEO and chairman for NextWave. "Qualcomm's third-generation CDMA2000 technology offers the highest spectral efficiency in the industry and is uniquely capable of supporting our strategy of extending the desktop Internet experience to a broad range of wireless devices. With Qualcomm's support, we will construct one of the most advanced IP-based wireless networks in the world and help ensure America's leadership in broadband wireless technology."
Under the Technology Cooperation Agreement, Qualcomm will make available to NextWave technical assistance in designing and deploying NextWave's CDMA2000 1X/1xEV network and offer support for NextWave's innovative "carriers' carrier" distribution strategy. Qualcomm also expects to collaborate with NextWave on the development of new applications and features that will be supported by CDMA technology.
NextWave Telecom, Inc., headquartered in Hawthorne, N.Y., was organized in 1995 to provide high-speed wireless Internet access and voice communications services to consumer and business markets on a nationwide basis. NextWave is currently constructing a third-generation CDMA2000 1X network in all of its 95 PCS markets whose geographic scope covers more than 168 million POPs coast to coast, including all top 10 U.S. markets, 28 of the top 30 markets, and 40 of the top 50 markets. NextWave's "carriers' carrier" strategy allows existing carriers and new service providers to market NextWave's network services through innovative airtime arrangements. For more information about NextWave, visit their Web site at http://www.nextwavetel.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 CDMA integrated circuits and system software; technology licensing; the Binary Runtime Environment for Wireless™ (BREW™) applications 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 2001 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, the extent and speed with which the companies Qualcomm has invested achieve profitability, 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.
Qualcomm, OmniTRACS and Eudora are registered trademarks of Qualcomm Incorporated. OmniExpress and BREW are trademarks of Qualcomm Incorporated. Globalstar is a trademark of Loral Qualcomm Satellite Services, Incorporated. All other trademarks are the property of their respective owners.
August 16, 2001August 16, 2001