SAN DIEGO -- October 2, 2001 -- Qualcomm Incorporated (Nasdaq: QCOM), pioneer and world leader of Code Division Multiple Access (CDMA) digital wireless technology, today announced an evolutionary path which it projects would enable CDMA2000 operators around the world to increase their voice network capacity by a factor of two when the evolved handsets are widely deployed. This increase is accomplished above and beyond the nearly twofold voice capacity improvement provided by third-generation (3G) CDMA2000 1X systems. The improvements in voice network capacity, data services efficiency and overall quality of service are achieved within the existing technical specifications for CDMA2000, eliminating backward and forward compatibility issues and the need for development of a new standard.
"As we examine the future growth in wireless use and range of services and work together with cellular operators around the world, we recognize the economic need for real and substantial improvements in system efficiency," said Dr. Roberto Padovani, executive vice president of research and development for Qualcomm. "In less than 10 years, the industry has witnessed a greater than tenfold voice capacity improvement over first-generation analog systems with the introduction of second-generation CDMA systems, a nearly twofold further increase achieved by third-generation CDMA2000 1X, and an order of magnitude performance improvement for data services through the introduction of CDMA2000 1xEV-DO. At the same time, penetration rates, minutes of use and demand for data services continue to increase while spectrum availability remains tight. The good news is that tested techniques are available to CDMA-based systems to win this race while further improving quality."
Operating within the constraints of the CDMA2000 specification, this doubling of voice capacity can be accomplished by the combination of advances in speech processing, introduction of dual-antenna, dual-receiver handsets coupled with advanced signal processing techniques and simple and pragmatic diversity reception techniques applied to cellular base station receivers. The infrastructure and terminal costs of this next evolutionary step are small due to the continuing advances in device integration accomplished by Qualcomm CDMA Technologies (QCT).
"We needed highly integrated radio frequency integrated circuit solutions and digital signal processing horsepower to accomplish our goals and QCT has come through once again," said Padovani. "This month we will enter a phase of intensive verification on both test and operational networks with pre-commercial MSM5500 chipsets and, in parallel, continue development of highly integrated and commercial chipset solutions to implement these important capacity gains."
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 that are subject to risks and uncertainties, including the Company's ability to successfully design and implement the product enhancements discussed above, 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.
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