With the kickoff of Super Bowl XXXVII a few days away, Qualcomm Incorporated (Nasdaq: QCOM), pioneer and world leader of Code Division Multiple Access (CDMA) digital wireless technology, today highlighted the growth in the CDMA global market and San Diego's telecommunications industry in San Diego since the last time the Super Bowl was played in San Diego at Qualcomm Stadium. In the five years since Qualcomm Stadium was the first corporate-named stadium to host the big game, the Company has seen significant advancements in development and adoption of CDMA technology, including the deployment of third-generation (3G) wireless services.
In January 1998, there were nearly eight million second-generation CDMA subscribers in seven countries (source: EMC) and CDMA2000 had been submitted to the International Telecommunications Union (ITU) as part of the IMT-2000 process for global third-generation (3G) standards. As of today, there are more than 142 million CDMA subscribers worldwide in 52 countries (source: EMC, 12/02). Additionally, 35 operators in 17 countries have already launched 3G CDMA services, providing over 27 million reported 3G subscribers with a compelling and enriched wireless voice and data experience, including color screens, feature-rich handsets that enable multimedia and position location services.
In 2002, two nationwide 3G networks were launched in the U.S. by Verizon Wireless and Sprint; China Unicom launched a nationwide CDMA network in the People's Republic of China; SK Telecom launched high-speed wireless data services with CDMA2000 1xEV-DO in South Korea; Qualcomm's BREW platform was deployed by three U.S. carriers and reached more than 3.2 million users worldwide; and Monet Mobile launched the first commercial CDMA2000 1xEV-DO network in the U.S. Qualcomm had also shipped a cumulative total of over 820 million chips by the end of December 2002.
"We're excited to have the Super Bowl back at Qualcomm Stadium this year, and we're excited about the developments that have occurred in the wireless industry since 1998," said Jeffrey K. Belk, senior vice president of marketing for Qualcomm. "Five years ago, Qualcomm's marketing efforts surrounding Super Bowl supported generating awareness around the Qualcomm name, and generating demand for Qualcomm phones. In 2003, although we no longer have a consumer-facing mobile handset business, we can point to the rapid pace of 3G device innovations and carrier commercial launches of new 3G services as evidence of the growing demand for advanced wireless solutions based on CDMA technology. We're also pleased to see significant growth in San Diego's telecom industry in the past five years, with a near doubling of employees of telecommunications companies and the highest concentration of telecommunications firms in the nation."
As the developer and leader in the commercialization of CDMA, Qualcomm has helped spearhead San Diego's growth into a thriving entrepreneurial center - encouraging the creation of small, high-tech companies and attracting large technology companies to the region. Through an expanding local technology industry - including tremendous growth in the wireless category - San Diego has been transformed into a high-tech powerhouse, marked by international centers for biotechnology, communications, software and scientific research. In 1998, the telecom industry had 15,000 employees in San Diego. That figure has more than doubled in five years, increasing to 39,000 (source: San Diego Telecom Council). San Diego's communications cluster is projected to grow by 75 percent between 1998 and 2006 (source: Applied Development Economics).
Highlighting industry advancements and promoting education in San Diego, Qualcomm's major initiatives surrounding Super Bowl XXXVII include:
Qualcomm's NFLA Tech for Kids Program: Together with NFL Alumni and corporate partners, Qualcomm's NFLA Tech for Kids program presented Mann Middle School with the latest computer and technology equipment to outfit the school's computer lab and support high-technology education programs.
Technology Touchdown Contest: Two San Diego high school students were declared winners and each received a $5,000 college scholarship, $10,000 for his school's math and science departments and a pair of tickets to the big game for their innovative and creative wireless technology contest submission.
Qualcomm International Media Party: Qualcomm is the title sponsor of this NFL-sanctioned event for international members of the credentialed media who have traveled to San Diego to cover the big game.
San Diego Super Symphony: The program will salute the local arts scene, with the San Diego Symphony backing some of the most preeminent local blues talent. An NFL Video Highlights piece showing highlights and bloopers from past Super Bowl games will be accompanied by an original score of orchestral and jazz trio music.
3G Press Briefing: Qualcomm held a press briefing today at the Lodge at Torrey Pines, San Diego. Leading global wireless service providers discussed the industry's achievements and outlook for CDMA in 2003.
Qualcomm has received significant visibility from its contribution to the city of San Diego in 1997 to complete the expansion of the stadium in exchange for naming rights until 2017. Qualcomm's involvement ensured the completion of the necessary stadium upgrades making Qualcomm Stadium a premier sports and event facility, and ensuring San Diego's status as a major league city. Qualcomm Stadium is home for San Diegans and their teams: the Padres, Chargers and the San Diego State University Aztecs. San Diego has previously hosted Super Bowls XXII in 1988 and XXXII in 1998 at the stadium.
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. Headquartered in San Diego, Calif., Qualcomm is included in theS&P500 Index and 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, 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 30, 2002 and most recent Form 10-Q.