SAN DIEGO -- October 22, 2001 -- Qualcomm Incorporated (Nasdaq: QCOM), pioneer and world leader of Code Division Multiple Access (CDMA) digital wireless technology, and Airvana Inc., a provider of third-generation (3G) wireless network infrastructure for the mobile Internet, today announced they have signed a multi-million dollar CDMA2000 1X Evolution Data Optimized (1xEV-DO) infrastructure license agreement. Under the terms of the royalty-bearing license agreement, Qualcomm has granted Airvana a license under certain Qualcomm CDMA patents to develop, manufacture and sell 3G CDMA2000 1xEV-DO infrastructure equipment. Airvana has also signed a design transfer agreement for the development and design of CDMA2000 1xEV-DO infrastructure modem card equipment, which will enable high-speed wireless Internet access.
As part of Qualcomm's ongoing strategic initiatives, Qualcomm Ventures has made an equity investment in Airvana to help drive the rapid adoption of the wireless Internet based on 3G CDMA.
"We are very pleased to license Airvana for the development of CDMA2000 1xEV-DO advanced commercial network equipment," said Marvin Blecker, senior vice president of technology transfer for Qualcomm. "The demand for the wireless Internet is rapidly growing and it is important for companies to begin providing infrastructure to enable next-generation voice and data mobile services."
CDMA2000 1xEV-DO enables "always on" data to be sent over PCS and cellular wireless networks at speeds comparable to DSL or cable modems, at a lower cost per byte than any other 3G technology in development today. CDMA2000 1xEV-DO provides peak data rates up to 2.4 Megabits per second (Mbps), fast enough to support demanding applications such as streaming video and large file downloads.
"The broadband speed of CDMA2000 1xEV-DO, combined with our innovative all-IP architecture unleashes the economics of wireless data," said Randy Battat, president and CEO of Airvana. "Airvana's CDMA2000 1xEV-DO network is fast enough to support web-based phones, personal digital assistants (PDAs) and laptop PCs. Our all-IP architecture allows for more rapid deployment, lower operational costs, and new services and revenue streams, which are not possible to achieve with conventional, voice-centric designs."
Airvana Inc. (www.airvananet.com) is a privately held company formed in March 2000 by a team of former senior executives from Motorola, Lucent, Cisco and Nortel. Based in Chelmsford MA, Airvana designs and builds all-IP 3G Radio Access Network (RAN) infrastructure equipment. Airvana employs some of the best data networking and wireless professionals in the world who are inspired by the belief that the Internet Protocol (IP) will change wireless networks as profoundly as it has changed wired networks.
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 chipsets 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, (including but not limited to express or implied statements regarding the anticipated benefits to Qualcomm from the agreement with, and investment in Airvana and the anticipated growth in the wireless Internet), 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.
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.
October 22, 2001October 22, 2001