Nextel Communications, Inc. (Nasdaq: NXTL), the premier provider of mobile wireless services to business customers, Qualcomm Incorporated (Nasdaq: QCOM), pioneer and world leader of Code Division Multiple Access (CDMA) digital wireless technology, and Motorola, Inc., (NYSE: MOT), the world leader in Push to Chat technology, today announced plans to develop a Direct Connect product for global wireless network operators using CDMA platforms. Nextel has signed an agreement with Qualcomm that complements and builds upon Nextel's existing and continuing agreements with Motorola. Specifically, Nextel and Qualcomm have entered into a licensing agreement for the further development and deployment of Qualcomm's QChat™ software. Motorola will integrate the overall infrastructure solution for use in CDMA networks and will develop specific enhancements to CDMA2000 to ensure the fast call set up, mobility management and iDEN® interoperability necessary for Nextel's Direct Connect service. Subject to a definitive agreement, Motorola will have marketing rights for the enhanced Direct Connect product outside the United States.
"Nextel's value proposition is our differentiated wireless communications offerings, pure and simple," said Tim Donahue, president and CEO of Nextel. "Working with Qualcomm and Motorola, we fully expect to deliver the future of Direct Connect on CDMA. Nextel is pleased to bring together these technology leaders to create a next generation Direct Connect service that will not only enhance our own future offerings but will also benefit network operators worldwide. Furthermore, developing Direct Connect on CDMA platforms, which will be interoperable with our iDEN-based Direct Connect service, will be an important milestone in Nextel's eventual migration to a next generation platform. In the short term, we will continue to work with Motorola on our recently announced enhanced iDEN vocoder solution, and we look forward to extending our relationship with Motorola. When we make our 3G choice, Motorola will receive a minimum of fifty percent of our infrastructure and handset business."
"This agreement combines Qualcomm's innovative software application, QChat, with Nextel's strong track record of offering unique services, such as Direct Connect," said Dr. Irwin Mark Jacobs, chairman and CEO of Qualcomm. "Qualcomm's CDMA QChat software combined with Motorola's infrastructure will enable the creation of a global community of Direct Connect users. For instance, a Direct Connect customer in Boston will be able to instantly communicate with a Direct Connect customer in Beijing."
"Motorola is pleased to have the opportunity to work with Nextel and Qualcomm to extend the industry's leading differentiation of Direct Connect services to CDMA networks worldwide," said Ed Breen, President and COO of Motorola. "Motorola will be actively involved in the final implementation of the high performance Direct Connect solution and will develop interoperability with Nextel's nationwide iDEN network. We are also very pleased to extend our very successful supplier relationship with Nextel to include future CDMA infrastructure and subscriber products."
These agreements, which grant Nextel certain exclusive license rights in North America and several other international markets, are expected to enable Direct Connect Push to Chat functionality over wireless CDMA networks using a voice-over-IP architecture. The architecture will be designed to enable subscribers worldwide to talk with each other at the push of a button. In addition, the technology will be designed to support dynamic management of group membership by subscribers to enable users to add and remove participants at any time on their handsets. This dynamic group management capability also would enable ad hoc creation of talk groups by users, in addition to the standing groups that an administrator may establish. Other technology features are expected to include:
- Support for over-the-air upgrade of handset software via Qualcomm's BREW™ platform;
- Access to directory services over the network, including Direct Connect listings;
- Easy implementation of the user interface in multiple languages.
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995. A number of the matters and subject areas discussed in this press release that are not historical or current facts deal with potential future circumstances and developments. The discussion of such matters and subject areas is qualified by the inherent risks and uncertainties surrounding future expectations generally, and also may materially differ from actual future experience involving any one or more of such matters and subject areas. We have attempted to identify, in context, certain of the factors that we currently believe may cause actual future experience and results to differ from current expectations regarding the relevant matter or subject area. Such risks and uncertainties include the successful performance of these new technologies, timely development and delivery of these new technologies, economic conditions in currently existing and targeted markets, competitive conditions, market acceptance of these services, access to sufficient capital to meet operating and financing needs and those that are described from time to time in reports filed with the SEC by Qualcomm, Nextel and Motorola, including each of their annual reports on Form 10-K and their subsequent quarterly filings on Form 10-Q. This press release speaks only as of its date, and Nextel, Qualcomm and Motorola each expressly disclaims any duty to update the information herein.
Nextel Communications Inc., based in Reston, Va., is a leading provider of fully integrated wireless communications services and has built the largest guaranteed all-digital wireless network in the United States covering thousands of communities across the United States. Nextel and Nextel Partners, Inc., currently serve 195 of the top 200 U.S. markets. Through recent market launches, Nextel service is available today in areas of the U.S. where approximately 230 million people live or work. In addition, through Nextel International, Inc., Nextel has wireless operations and investments primarily in selected Latin America markets.
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 the S&P 500 Index and is a 2001 FORTUNE 500® company traded on The Nasdaq Stock Market® under the ticker symbol QCOM.
Motorola, Inc. (NYSE: MOT) is a global leader in providing integrated communications and embedded electronic solutions. Sales in 2000 were $37.6 billion. Motorola is also a world leader in Push to Chat technology solutions and developed the unique iDEN technology for Nextel, which currently is the most feature rich 2.5 generation technology in the world incorporating direct connect and packet data services with a broad portfolio of handsets. Today there are over 11.5 million iDEN subscribers in 14 countries. Motorola is also a leading supplier of CDMA infrastructure and handsets globally.