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The AD6633 is Analog Devices' first digital up-converter with crest factor reduction technology for CDMA2000, W-CDMA, and TD-SCDMA, 3G wireless transmitter applications.
Analog Extends VersaCOMM
03.22.04
http://www.unstrung.com/document.asp?doc_id=49667
NORWOOD, Mass. -- Analog Devices, Inc. (NYSE: ADI - message board), a global leader in high-performance semiconductors for signal processing applications, today extended its VersaCOMM® family of digital up- and down-converters. Among the new products is the AD6633, a digital up-converter featuring breakthrough technology that significantly reduces output power requirements for 3G wireless base station power amplifiers (PA). The AD6633’s innovative VersaCREST™ crest reduction engine enables optimum baseband-to-IF (intermediate frequency) signal conversion by anticipating and reducing power peaks earlier in the signal chain. Traditionally, base station manufacturers have relied on expensive, highly linear power amplifiers to avoid output signal distortion caused by large peaking signals. Analog Devices' new solution reduces peak-to-average power by up to 6 dB, the equivalent of replacing a 40 W amplifier with a 10 W amplifier. This means that manufacturers can either reduce their power amplifier expense while achieving dramatic power savings of up to 75 percent, or, using the existing 40 W PA, an operator can support up to four times the coverage area.
The AD6633 is Analog Devices' first digital up-converter with crest factor reduction technology for CDMA2000, W-CDMA, and TD-SCDMA, 3G wireless transmitter applications. Operating at 125 MSPS and processing four or six channels, the AD6633 is capable of trading crest factor reduction against signal distortion. The signal distortions can be allocated dynamically to any individual channel; thus, allowing operators to configure performance preferences for high quality data or lower quality voice communications. The converter also features programmable wideband channel filters that can be implemented for CDMA2000, W-CDMA, or TD-SCDMA standards, enabling manufacturers to use a single device across multiple platforms.
“As demand for 3G services accelerates, wireless infrastructure manufacturers and assembly contractors will be seeking effective design solutions that reduce their starting capital and operational costs,” said Kevin Kattmann, product line director for high-speed converters, Analog Devices. “The AD6633's innovative VersaCREST™ crest reduction engine delivers unparalleled signal conditioning performance in peak-to-average power reduction and reduces the power amplifier cost component within base station designs—a winning combination for both our customers and their subscribers.”
Analog Devices also introduced today a new wideband digital down-converter for multi-carrier receivers. The AD6636 wideband digital down-converter is capable of processing up to six UMTS, CDMA2000, or TD/SCDMA channels at speeds of up to 150 MSPS. Each channel is dynamically reconfigurable, operates independently, and includes cascaded signal-processing elements: a frequency translator, programmable decimating filter, and automatic gain control (AGC) circuitry that optimizes the dynamic range of the system. The receiver input block allows routing of the ADC data to any or all of the six receive processing channels.
The AD6636 features a fractional clock multiplier that uses the ADC clock to produce a digital down converter master clock up to 200 MHz. This internal phased-locked loop (PLL) allows optimum digital clock rates, regardless of the converter sampling rate, enabling the best possible digital signal decimation and filtering. Two 16-bit parallel output ports accommodate high data rate 3G applications. An on-chip interpolating half band filter can also be used to further increase the output rate while still allowing for very efficient filters. In addition, each parallel output port has a digital AGC for output data scaling.
Analog Devices Inc.
China Unicom downgraded to "peer perform"
Monday, March 22, 2004 3:19:03 AM ET
Bear Stearns
http://www.newratings.com/new2/beta/article_398887.html
NEW YORK, March 22 (New Ratings) – Analyst Evan Erlanson of Bear Stearns downgrades China Unicom Limited (762.HK) to "peer perform."
In a research note published on March 19, the analyst mentions that the company is likely to face stiff competition in the wireless market in 2004. CDMA margins expansion would boost the company’s margins and revenue growth this year, Bear Stearns believes. China Unicom’s stock is an attractive investment option on account of the company’s healthy growth outlook and its attractive returns. The analyst says.
Digit Wireless, LG Electronics and TELUS Mobility announce production of the world's first Fastap(TM) enabled mobile phone
http://www.tmcnet.com/usubmit/2004/Mar/1025238.htm
ATLANTA, March 22 /PRNewswire-FirstCall/ -- Today at the CTIA Wireless 2004 conference, Digit Wireless, consumer electronics giant LG Electronics and Canadian wireless carrier TELUS Mobility announced an agreement to produce the world's first Fastap(TM) enabled mobile phone.
Digit Wireless's Fastap keypad allows mobile phone users to quickly and intuitively type text messages and other data using letter, number and punctuation keys arranged neatly around the standard keypad on a mobile phone.
Fastap brings keyboard functionality directly to a standard-sized mobile phone, offering both business users and consumers an intuitive interface designed specifically for easy text messaging and other mobile data applications, said Chris Hare, President of Digit Wireless. We expect early partnerships with industry leaders such as TELUS Mobility and LG Electronics to drive widespread adoption of Fastap enabled phones.
Said Neil Strother, senior analyst with In-Stat/MDR's wireless research group: Mobile text messaging has made great strides in North America, but widespread usage remains elusive. One of the limiting factors has been the traditional telephone keypad. But Digit Wireless' unique and easy solution breaks the mold, and should enable some serious growth for text messaging.
TELUS Mobility is the first wireless provider in the world to publicly commit to Fastap technology, and plans to offer Fastap enabled mobile phones exclusively in Canada in 2004. TELUS Ventures, a corporate investment fund dedicated to creating strategic alliances with entrepreneurial organizations, has invested directly in Digit Wireless, enabling the innovative technology company to expand its worldwide presence.
TELUS Mobility's longstanding recognition that mobile phones are not just for phone calls anymore has placed us in a North American leadership position in messaging and wireless Web offerings. Our partnership with Digit Wireless and LG Electronics to introduce the world's first Fastap enabled phone is as natural a fit for us as the Fastap keyboard is on a mobile phone, said Robert Blumenthal, Vice President of Products and Services at TELUS Mobility.
LG Electronics, the first wireless handset manufacturer to announce production of Fastap enabled mobile phones, has an established reputation as a wireless technology innovator. Its successful LG 5450 camera phone, already offered across Canada by TELUS Mobility, has been modified as a demonstration unit to carry Fastap keypad software and hardware. The company is preparing a production model of a similar phone for introduction by TELUS Mobility in 2004.
LG is excited to partner with Digit Wireless and TELUS Mobility to offer the first handset that incorporates the truly innovative Fastap technology, said Jae Ham, Vice President, CDMA Handsets, LG Electronics. LG is committed to providing cutting-edge wireless phones that are compact, easy to use and unique in their functionality - and our exclusive Fastap enabled phone certainly fits our mandate.
About Digit Wireless
Digit Wireless is a technology innovation and licensing company that launched the Fastap keypad, a small, simple, direct-entry interface for wireless and portable products. The company licenses its designs and technology to mobile device manufacturers. A recipient of a number of technology and business awards, Digit Wireless is headquartered in Cambridge, Massachusetts, with offices in Washington, D.C., London and representation in Asia. For more information visit the company website at digitwireless.com.
About TELUS Mobility
TELUS Mobility provides its 3.4 million clients across Canada with a full suite of wireless voice, Internet and data services through its PCS and Mike digital wireless networks. For more about TELUS Mobility, please visit telusmobility.com.
TELUS (TSX: T, T.A; NYSE: TU) is the largest telecommunications company in Western Canada and the second largest in the country, with more than $7.1 billion of annual revenue, 4.87 million network access lines and 3.4 million wireless subscribers. The company provides subscribers with a full range of telecommunications products and services including data, voice and wireless services across Canada, utilizing next generation Internet-based technologies. TELUS was a premier founding supporter of the successful bid to bring the 2010 Winter Olympic and Paralympic Games to Canada. For more information about TELUS, please visit telus.com.
About LG Electronics
Established in 1958 as Korea's pioneer consumer electronics company, LG Electronics is a major global force in Electronics and Information & Communications products. More than 55,000 employees working in 73 overseas subsidiaries and marketing units around the world, strengthen LG Electronics' core competencies in three main business companies: Digital Appliance, Digital Display and Media, Telecommunication Equipment & Handset.
The Telecommunication Equipment & Handset Company provides total solutions ranging from wired and wireless handsets to telecommunication equipment. LG Electronics is steadily expanding its world market share in CDMA, GSM and W-CDMA (UMTS) through innovation and the development of leading- edge technologies in next-generation wireless telecommunications.
LG Electronics is focused on promoting Home Network and Mobile Network businesses based on cutting-edge Multimedia Application Technology along with Information and Communication Technology as its core business areas.
LG Electronics' goal is to enable the intelligent networking of digital products that will make consumers' lives easier than ever. For more information, please visit http://www.lge.com/.
Media may also access additional photos and electronic media materials online at: telusmobility.com/presskit/new_product.shtml
B-roll footage - satellite co-ordinates:
March 22 from 1 p.m. - 1:30 p.m. Anik E2
C Band Analog
Transponder 8B
Audio subcarrier 6.2 and 6.8
Downlink Frequency 4020 vertical
TELUS Mobility
CONTACT: For more information or photos, media may contact DigitWireless: Mira Genser, Cell: (617) 513-7020, mgenser@digitwireless.com;TELUS Mobility: Julia Quinton, Cell: (416) 684-4050,julia.quinton@telus.com; LG Electronics: Steve Preiner,Tel: (905) 568-6747, Spreiner@lge.com
Sonim Announces PoC Client For CDMA; Universal Push-to-Talk Client Optimized for Both Low- and High-End Handsets
March 22, 2004 06:00 AM US Eastern Timezone
http://home.businesswire.com/portal/site/google/index.jsp?ndmViewId=news_view&newsId=20040322005...
CTIA Wireless 2004
SAN MATEO, Calif.--(BUSINESS WIRE)--March 22, 2004--Sonim Technologies, the leader in enabling wireless data networks to deliver voice services including the Push-to-Talk (PTT) capability, today announced that the Sonim PoC Client(TM) software solution has been extended to include CDMA capability. The client, which operates within a feature phone, as well as with open operating environments in today's smart phones, provides robust PTT features, including contact list, multiple group configurations and presence capabilities. The Sonim PoC Client adheres to the Push to talk over Cellular (PoC) specification for CDMA.
The Sonim PoC Client has been thoroughly field-tested as an integrated client on handsets from several leading manufacturers, including full PoC interoperability tests together with industry-standard infrastructure. This joint development and testing ensures that the Sonim PoC Client has the requisite functionality, reliability and ease of integration required by the major handset manufacturers and mobile operators throughout the world.
"Sonim is very excited to deliver the first PoC compliant CDMA client software to the wireless industry," said John Burns, CEO and President for Sonim Technologies. "The PoC specification has delivered on its promise of being universal with the ease of adding CDMA to the PoC family."
The PoC specification is the standard for Push-to-Talk solutions and it is designed to be air interface agnostic. Sonim is a partner of Ericsson and together they are taking advantage of their industry leading positions in providing end-to-end PoC solutions with the introduction of the advanced PoC functionality and reliability for CDMA.
Sonim PoC Client for CDMA is immediately available for integration in handsets of all types through the Sonim's Instant Port(TM) program. Please contact Dan Benveniste for additional information at partners@sonimtech.com.
Sonim Technologies will be exhibiting at CTIA Wireless 2004, booth 2374. Please contact Bethany Kleparek to arrange meetings and demonstrations: bkleparek@sonimtech.com.
About Sonim Technologies, Inc.
Sonim Technologies enables today's GSM and CDMA wireless data networks to deliver high-margin voice services. This standards-based solution provides real-time communication services such as Push-to-Talk that combine the flexibility of mobile messaging with the ease-of-use of voice. The end-to-end, IP-based solution creates significant new revenue streams and delivers superior 'return on bandwidth' for mobile operators. Sonim is headquartered in San Mateo, Calif., with offices in Italy and the United Kingdom. For more information, visit the company's web site at www.sonimtech.com.
Other product or service names mentioned herein are the trademarks of their respective owners
Samsung, Togabi Team
03.22.04
http://www.unstrung.com/document.asp?doc_id=49656
SAN DIEGO -- Samsung Electronics and Togabi Technologies today announced a strategic agreement aimed at bringing Push to talk over Cellular (PoC) technology to the mass market. Based on this agreement, Samsung plans to introduce push to talk in its mobile terminal products during 2004 and 2005 utilizing Togabi's PoC-compliant technology.
Togabi provides Samsung with its push to talk technology for both CDMA and GPRS handsets. Togabi's push to talk technology is based on open specification and offers a smooth migration path to the upcoming OMA standard. These industry-wide specifications and standards-based, end-to-end solutions are important to ensure interoperability and achieve the goal of successful penetration for push to talk.
"Togabi's PoC compliant client software and server solution offers operators of all network types a quality choice for rapid deployment," says Sangup Lee, VP, R&D, Samsung. "With PoC-capable terminals Samsung is launching soon, Samsung is taking a leading role in this application that is transforming instant wireless communications."
Both Samsung and Togabi are highly active, contributing members of the industry consortium that is working on the final PoC requirements through the Open Mobile Alliance (OMA) expected to be released later this year. Previously in March 2003, Samsung and Togabi had disclosed a push to talk development agreement and this announcement is further evidence of a growing, mutually-beneficial relationship.
"Building on our strong two year relationship with Samsung, Togabi is pleased to be offering PoC client available on Samsung's growing line of PoC-ready handsets," says Mark Handzel, President and CEO, Togabi. "Coupled with our industry-leading lineup of global infrastructure partners, Togabi is uniquely positioned to offer clear, end-to-end deployment choices to wireless operators."
Samsung Electronics Co. Ltd.
Togabi Technologies Inc.
Huawei Wins Ethiopian Deal
03.22.04
http://www.unstrung.com/document.asp?doc_id=49651
ADDIS, ABABA, Ethiopia -- Huawei Technologies, a global supplier of telecom infrastructure, announced the company has signed a contract valued at over USD10 million with Ethiopian Telecommunications Corporation (ETC), the sole operator in Ethiopia, as the strategic partner to construct its CDMA2000 1X WLL network.
Under the contract, Huawei will provide ETC with the complete CDMA 1X WLL system, comprising a combination of 800MHz and 450MHz, which is based on the CDMA2000 1X technologies. This system will supplement the operator’s existing PSTN network via V5.2 interface. Besides the current PSTN service, the CDMA2000 WLL will also provide high speed data service to boost the network value of ETC. Based on Huawei’s advanced 3G platform, this system can be smoothly evolved to 1xEV-DO, guaranteeing the future growth of ETC’s business.
In this project, Huawei’s 800MHz CDMA WLL system will be deployed in Addis Ababa, the Capital of Ethiopia; and the 450MHz CDMA WLL system in other three famous industrial cities. This WLL system can quickly access the subscribers and it is the cost effective way to quickly promote the tele-density in Ethiopia.
CDMA WLL saves the investment on cabling, which consists of quite a proportion of the operator’s CAPEX. It also provides many attractive features that conventional wire-line access could not compete with, such as fast provisioning of services, flexible coverage, and high security.
"With the help of the CDMA2000 wireless access technology, many traditional PSTN operators accelerate their expansion of business," said Tao jingwen, President in charge of Huawei Southern Africa Operation. “As a leading vendor and reliable partner in the telecom industry, Huawei is always providing the most competitive solutions for our customers and spares no efforts in helping them win in the market,” he added.
Huawei Technologies Co. Ltd.
Ethiopia Telecommunications Corp
U.S. carriers pick up the 3G pace
By Ben Charny
CNET News.com
March 21, 2004, 9:00 PM PT
http://zdnet.com.com/2100-1104-5176504.html
U.S. cellular carriers, which lag way behind European and Asian counterparts in offering wireless broadband, are set to unveil several initiatives on Monday to help them catch up with overseas companies.
AT&T Wireless, under pressure from an arrangement with part-owner NTT DoCoMo to introduce wireless broadband in four U.S. cities, is expected to announce at the CTIA Wireless 2004 show that Motorola, NEC and Nokia will supply it with camera phones for those third-generation, or "3G," wireless networks by year's end. That's a major step toward offering services like video streaming in the cities in question, which are likely to be San Francisco, Seattle and two other markets, executives noted.
Verizon Wireless, the largest U.S. cellular carrier, plans to make several announcements about BroadbandAccess, its wireless broadband service, at the conference. Vendors of equipment for cell phone networks expect that Verizon will say which company it wants to supply gear to expand the service, which is undergoing trials in Washington, D.C., and San Diego.
In addition, Nextel Communications is expected to unveil more details about a wireless broadband service trial it is conducting in North Carolina. The trial uses technology from Flarion Technologies that is capable of ferrying wireless data at 1.5 megabits per second, compared with Nextel network's current rate of about 20 kilobits per second.
"We're looking at this because it's fast, disruptive and efficient," Nextel CEO Tim Donahue said recently.
After five years of famously slow progress, 3G networks that use standards with cumbersome names such as UMTS or W-CDMA are now available throughout the United Kingdom, Germany, Austria, Japan and Korea. Carriers such as T-Mobile and 3 in Europe, and NTT DoCoMo in Japan, are using the technology, which operates 50 times faster than present-day cell phone networks. They use it to boost network capacity, to improve coverage areas, and to offer new services such as 2.4-megabit-per-second wireless broadband.
But carriers in the United States have lagged behind, mainly because their attention has strayed to more pressing issues, such as the November 2003 deadline to let cellular subscribers keep their telephone numbers when switching carriers. The slow economy also didn't help, according to Steve Largent, the chief executive of the Cellular Telecommunications & Internet Association, a lobbying group for the cell phone industry.
"It's been a slow rollout in the United States," he said. "It's been difficult to show a sustainable business model for that amount of capital investment."
Carriers have their eye on the 3G prize because, as a whole, they're counting on future sales of data-oriented services to make up for plunging revenue from voice calls. Once faster networks are in place, carriers can initiate their plans to sell broadband in areas overlooked by cable or DSL providers. Analysts forecast they will bring in a few hundred million dollars in extra revenue, once they do. The first wireless carrier to reach 3G is the first to begin earning that revenue.
"Timing is everything in this market," said Lawrence Babbio, Verizon's vice chairman.
Let there be music
But not all carriers' attention is on their networks.
Cingular Wireless, the No. 2 U.S. wireless provider, plans to announce several new initiatives designed to help it absorb the 22 million subscribers it will pick up if its plans to buy AT&T Wireless by the end of the year are successful.
It will unveil the Cingular Service Summary, which spells out the terms of service contracts to new customers in an easy-to-understand way. The carrier also intends to let people find out how many minutes they have left on a contract by pushing the star button followed by the letters M-I-N on their phones. They can also sport scores read over the phone by pressing B-A-L-L.
At the CTIA show, Sprint Communications will introduce phones and services involving music and other entertainment, according to a Sprint representative. It will also make the debut handsets with advanced audio capabilities, plus an upgrade to its picture-mail service, which is one of the surprising success stories of the industry in the past year.
QUALCOMM and ATI Join Forces to Create Wireless 3D Gaming Platform
Monday March 22, 6:00 am ET
- Industry Leaders Unleash the Power of Wireless 3D Gaming -
http://biz.yahoo.com/prnews/040322/nym091_1.html
ATLANTA, March 22 /PRNewswire-FirstCall/ -- CTIA Booth #3931, Hall B4 -- QUALCOMM Incorporated (Nasdaq: QCOM - News), pioneer and world leader of Code Division Multiple Access (CDMA) digital wireless technology, and ATI Technologies Inc. (TSX: ATY, Nasdaq: ATYT), the global leader for mobile graphics, today announced a strategic technology collaboration to create the next-generation wireless 3D gaming platform. As part of the collaboration, QUALCOMM's industry-leading Mobile Station Modem(TM) (MSM(TM)) baseband solutions will include ATI's highly optimized IMAGEON(TM) architecture to provide a fully featured, high-performance 3D gaming solution for 3G CDMA2000® and WCDMA (UMTS) devices.
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QUALCOMM will license and integrate the IMAGEON technology for its next- generation MSM7xxx(TM) family of chipsets, and will enable ATI to interface IMAGEON Application Specific Integrated Circuits (ASICs) to QUALCOMM's MSM6xxx(TM) chipsets -- providing QUALCOMM's manufacturing partners with a fully tested 3D multimedia hardware solution. This collaboration creates a rich 3D graphics and development environment which includes QUALCOMM's BREW(TM) solution, industry standard APIs, ATI's PC-level performance, and well established developer programs. This enables the development of value- added games for the mobile environment and easy porting to mobile devices, of some of the world's most popular PC and console-based games, resulting in new revenue generating opportunities for wireless operators and content providers.
"QUALCOMM and ATI have joined forces to deliver a superior 3D graphics solution to the wireless industry, furthering QUALCOMM's commitment to continually developing new uses for wireless," said Dr. Sanjay K. Jha, president of QUALCOMM CDMA Technologies. "Combining our leadership in wireless communications with ATI's leading graphics expertise establishes a new standard of excellence for wireless 3D graphics applications and devices."
"ATI is pleased to partner with QUALCOMM as the wireless industry leader to increase the commercial availability of 3D gaming and multimedia devices and services for 3G CDMA," said Dave Orton, president and chief operating officer, ATI Technologies Inc. "We are leveraging many years of expertise in graphics and 3D gaming across all platforms as well as our vast and strong relationships with content providers to offer an outrageous 3D graphics experience for wireless consumers in a very low power environment."
"ATI and QUALCOMM, through the BREW solution, will assist Verizon Wireless to deliver an extreme 3D gaming experience to our customers," said James Straight, vice president of wireless data and multimedia services for Verizon Wireless. "The combination of the BREW system and ATI's graphics solution, will enable publishers and developers to push the envelope with their exciting mobile offerings, giving our customers a superior gaming experience."
This collaboration will leverage the revenue-generating opportunities of the rapidly growing wireless gaming industry. IDC estimates that wireless gaming revenue could generate USD $1 billion by 2006 for wireless carriers in the United States.(1)
QUALCOMM will showcase a variety of 3G CDMA wireless products and solutions at CTIA Wireless 2004 in Atlanta, March 22-24 in booth number 3931 (hall B4) at the Georgia World Congress Center. QUALCOMM will hold a press conference on "Multimedia Convergence" on Monday, March 22 from 2-2:30 p.m. in the CTIA 2004 press conference facilities. ATI executives will be available to provide additional details on this collaboration.
QUALCOMM's chipsets include access to QUALCOMM's BREW solution. The BREW system enables the development and monetization of advanced applications and content, allowing operators and OEMs to differentiate their products and services and increase revenues. QUALCOMM's chipsets are also compatible with the Java runtime environment; J2ME(TM) can be built entirely on the chipset as an extension to the BREW solution.
ATI Technologies Inc. is the world leader in the design and manufacture of innovative 3D graphics and digital media silicon solutions. An industry pioneer since 1985, ATI is the world's foremost visual processor unit (VPU) provider. ATI is dedicated to delivering leading-edge performance solutions for the full range of PC and Mac desktop and notebook platforms, workstations, set-top and digital televisions, game consoles and handheld device markets. With 2003 revenues in excess of US $1.3 billion, ATI has more than 2,200 employees in the Americas, Europe and Asia. ATI common shares trade on NASDAQ (ATYT) and the Toronto Stock Exchange (ATY).
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 the S&P 500 Index and is a 2003 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, including integrating the IMAGEON technology into existing and future products, 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 28, 2003, and most recent Form 10-Q.
QUALCOMM is a registered trademark of QUALCOMM Incorporated. BREW, Mobile Station Modem, MSM, MSM6xxx and MSM7xxx are trademarks of QUALCOMM Incorporated. IMAGEON is a trademark of ATI Technologies Inc. ATI and ATI product and product feature names are trademarks and/or registered trademarks of ATI Technologies Inc. CDMA2000 is a registered trademark of the Telecommunications Industry Association (TIA USA). All other trademarks are the property of their respective owners.
1 IDC, U.S. Wireless Gaming Forecast Update, 2003-2008: Mobile Users Just
Wanna Have Fun, December 2003
QUALCOMM Contacts:
Jennifer Bernas, QUALCOMM CDMA Technologies
Phone: 1-858-845-7571
E-mail: qct_publicrelations@qualcomm.com
or
Emily Gin, Corporate Public Relations
Phone: 1-858-651-4084
E-mail: publicrelations@qualcomm.com
or
Bill Davidson, Investor Relations
Phone: 1-858-658-4813
E-mail: ir@qualcomm.com
ATI Contacts
Chris Evenden, Director, Public Relations
Phone: 1-416-509-0890
E-mail: cevenden@ati.com
or
Janet Craig, Director, Investor Relations
Phone: 1-416-997-9006
E-mail: janet@ati.com
--------------------------------------------------------------------------------
Source: QUALCOMM Incorporated
Deal will put RealPlayer on cell phones
Monday, March 22, 2004
By DAN RICHMAN
SEATTLE POST-INTELLIGENCER REPORTER
http://seattlepi.nwsource.com/business/165701_realnetworks22.html
Qualcomm Inc., a San Diego-based maker of electronic components for cell phones, has licensed RealNetworks Inc.'s RealPlayer and will begin producing chipsets with built-in players for use in cell phones by July 1, the companies said yesterday.
The deal opens a large new market for RealNetworks, said Ian Freed, vice president of mobile products.
Qualcomm's chips are used in more than 95 percent of all CDMA-based phones and in phones using the emerging successor to CDMA (Code Division Multiple Access), called W-CDMA, Freed said.
Of the estimated 580 million cellular handsets that will ship this year, 25 percent will use CDMA, according to Gartner Group analysts.
CDMA phones are less expensive than those using the rival GSM (Global System for Mobile Communications) technology, and they ship in greater quantities, Freed said.
Makers of cell phones using Qualcomm's chipsets include Samsung, Motorola, LG, Sanyo, Kyocera, Hitachi and Siemens. Those companies will begin producing phones using Qualcomm's chipsets by year-end, he said.
RealNetworks already has agreements with makers of GSM chipsets, including Texas Instruments, Intel, ST Microelectronics and Ericsson Mobile Platform. GSM chipsets are used in phones made by Nokia, Ericsson, Samsung, Siemens and Motorola.
Of the nation's six major cellular carriers, Sprint, Verizon and AT&T Wireless are currently offering audio and video content to subscribers, Freed said.
T-Mobile and Cingular are exploring video messaging. Nextel is still exploring the market.
Freed wouldn't disclose the terms of the licensing agreement or how it might affect the company's revenues.
But analyst Seamus McAteer, of San Francisco's The Zelos Group, said the deal positions RealNetworks to outflank archrival Microsoft Corp. and to net a tidy profit.
"While Microsoft is nowhere, really, except on handsets numbering in the single millions, RealNetworks is already at 7 million units, and through its relationships with handset makers it will be well into the tens of millions by the end of this year," McAteer said.
The increased presence of RealNetworks' player on handsets could lead to greater sales of its software used to stream content, and to revenue from providing the content itself, he said.
More headlines and info from Downtown.
P-I reporter Dan Richman can be reached at 206-448-8032 or danrichman@seattlepi.com
Technical problems haunt W-CDMA
http://www.koreaherald.co.kr/SITE/data/html_dir/2004/03/22/200403220010.asp
Carriers remain unconvinced over standard's market potential
Despite the government's intention to build a reliable market for wideband CDMA, or W-CDMA, the local wireless industry appears reluctant to commit itself to the new market experiment, with no quick solutions suggested for the technical problems surrounding the third-generation mobile platform as of yet.
The Ministry of Information and Communication announced earlier this month that it plans to provide 40 percent subsidies for W-CDMA phones starting in April. The move is an attempt to relieve the widespread complaints over the expensive handsets.
However, mobile service providers have suggested that the phone prices were not much of a factor compared to the technical deficiencies. Many users complained of poor reception, overheating and bulky designs, among others.
"The full-scale commercialization of W-CDMA will never be realized until after phone manufacturers come up with affordable and technically efficient handsets," said an SK Telecom public relations officer. "Wireless service providers would not be able to make specific investment plans in regard to W-CDMA before that point."
Some analysts have a different version of the story, claiming that wireless carriers are reluctant to invest heavily in the new mobile standard since they are not convinced of the market potential.
The government has been pushing the wireless industry over the past few years to enhance competitiveness in the international W-CDMA market, where the platform has been adopted as the 3G standard in Japan, most of Europe and several other countries.
However, with technical problems and market uncertainty causing W-CDMA to get off to a slow start in other countries, it seems unlikely that local wireless carriers will seriously consider jumping ship when the country's mainstream 3G standard cdma2000 1x EV-DO is doing so well. Aside from a few small experimental networks, there are currently no W-CDMA systems outside Japan. Currently, cdma2000 1x EV-DO has 5 million subscribers among the 34 million cellular phone users in Korea.
"It's estimated to take more than 1 trillion won to set up a separate W-CDMA network in Korea and wireless carriers are likely to be reluctant about investing that kind of money when the cdma2000 1x EV-DO market just opening up," said an analyst.
Analysts believe that it will not be until after July that local cell phone manufacturers develop handsets that can work both with W-CDMA and cdma2000 1x EV-DO.
It is unlikely that the wireless carriers SK Telecom and KTF, the two companies that own W-CDMA licenses here, will look for new subscribers before then. The government initially planned W-CDMA services to enter full commercialization at the start of March.
Since SK Telecom and KTF launched trial services in Seoul and eight cities in Gyeonggi Province last December, the new platform has been widely ignored by consumers due to the expensive, trouble-prone handsets and lack of features compared to cdma2000 1x EV-DO services. So far, only 700 registered have for KTF's W-CDMA services and SK Telecom garnered just 490 subscribers.
(thkim@heraldm.com)
By Kim Tong-hyung
2004.03.22
LG set for aggressive expansion in Europe
http://www.koreaherald.co.kr/SITE/data/html_dir/2004/03/22/200403220011.asp
LG Electronics Inc. is set to take advantage of the CeBIT 2004 tech fair to expand its presence in Europe, showcasing its high-end flat-panel displays and mobile devices at the world's largest electronics and telecommunications exhibition in Hannover, Germany.
The Korean electronics giant demonstrates its world-class technologies and designs with its emphasis brought to plasma displays, liquid-crystal displays, latest 3G mobile phone models and megapixel camera phones.
"The CeBIT is the festival of technologies and IT marketing not only for Europe but also for the rest of the world. As we demonstrate our sophisticated technological prowess and product and design power in handsets, flat-panel displays and media, we will endeavor to enhance our global brand recognition and maximize sales in Europe," said Park Mun-hwa, president of LGE's Telecommunication Equipment & Handset Company, at the week-long fair in Hanover.
At the 2,700-square-meter LGE booths, the 76-inch PDP and 55-inch liquid-crystal display televisions are LGE's top marketing items, along with CDMA- and GSM-compatible color phones and chic 270-degree rotating camera phones tailored for third-generation multimedia high-speed data services.
LGE says it is witnessing signs of success as the company is in talks with a number of European mobile operators for the shipment of 3G-enabled cellular phones this year.
Notably, Paris-based Orange SA, a wireless unit of France Telecom SA, will be LGE's first WCDMA partner in Europe, with shipments scheduled to begin in the first half of this year, according to Park.
"We are focusing on the high-end 3G handset technology in a bid to establish a firm footing in Europe," he said.
Hutchison, Vodafone, T-Mobile and Telecom Italia Mobile are also talking with LGE to purchase its cell phones, according to James Kim, who heads the company's European operations. The company aims to drive up its 3G-enabled handset sales in Europe nearly four-fold this year over last year, up to 5 million units.
With the 3G-related mobile infrastructure expected to mature next year, the demand for LGE's WCDMA phones will grow faster among European mobile service providers, company officials said. Indeed, Europe is turning into an increasingly lucrative market for handset manufacturers such as LGE. Mobile phone shipments rose 21 percent to a record 131 million units in Western Europe last year as lower prices, new models with color screens and operator subsidies boosted sales, according to researcher Strategy Analytics.
Efforts are being made to entice European customers with enhanced services. During the CeBIT fair, LGE launched a mobile portal service dubbed "WOW LG," which stands for World of Wireless, to provide LGE customers with polyphony ring tones, games and image-editing services in five languages - English, French, German Italian and Spanish.
"The days are gone when mobile phone makers only used to sell and offer warranties. The WOW LG portal differentiates LGE from competitors, seeking to foster pride among LGE mobile phone purchasers in using LGE products and make them loyal LGE customers," said Park.
As the world's largest CDMA handset maker with a 21.6 percent market share worldwide, LGE is putting fresh emphasis on Europe's GSM standard, as its global market leadership largely depends on the sales in the region.
When the sales of America-centered CDMA and Europe-type GSM handsets are combined, LG Electronics is ranked fifth worldwide, according to Strategy Analytics.
LG Electronics targets a 32 percent growth for its handset sales with shipments of 35 million mobile phones this year in a move to rise to the world's third-largest handset maker within three years.
In the displays business, LGE has drawn up plans for strong marketing campaigns to consolidate its No.1 position in plasma-display panel television sales in Europe. The company invested $10 million last October to upgrade its manufacturing facilities in Poland, increasing production of higher-value models.
"The Polish manufacturing base will get further strengthened this year as LGE wants to add in display assembly lines with annual capacity of 100,000 more panels," said LGE public relations officer Yang Seung-hyuk.
In the fourth quarter of 2003, LG Electronics overtook Japan's Matsushita Electric Industrial Co. as the world's third-largest plasma display maker, according to market researcher Isuppli. According to LGE's European business chief, the region is the second-largest display market after the United States. "We think the conventional CRT-type television will disappear in the developed countries, even though there is still some market space in the developing countries," Kim said.
On its home turf, LGE is also adding fuel to the growth of liquid-crystal display production, mainly from LG.Philips LCD Co., a joint venture between LG Electronics and Royal Philips Electronics NV of the Netherlands.
Last week, LG.Philips, the world's top maker of liquid crystal displays, broke ground on a 25 trillion won ($22 billion) industrial complex, the world's biggest flat-screen facility. Mass-production is scheduled to begin in 2006.
From its total European display shipments, the portion of premium models, such as plasma, liquid crystal and projection televisions, will increase from 50 percent in 2005 to 70 percent in 2007, according to company forecasts.
The numbers are generally in line with market outlooks. Display market researcher DisplaySearch expects the global market for plasma television screens to rise 50 percent to $2.7 billion this year and grow to $6.8 billion by 2007.
LG Electronics was established in 1958 as a pioneer on the Korean consumer electronics market. The company is a major global force in electronics and information and telecommunication devices. More than 55,000 employees work at 76 subsidiaries and marketing units worldwide.
In particular, it has been eyeing to establish a strong presence in Europe and the company boasts of four upscale manufacturing plants in Britain, Romania and Poland, 14 sales headquarters across the continent and a design center in Ireland.
(smkim@heraldm.com)
By Kim Sung-mi
2004.03.22
ZTE eyes R&D unit in India
http://www.thehindubusinessline.com/businessline/blnus/15191501.htm
New Delhi: Charting out an aggressive strategy for India, the Chinese telecommunication equipment company ZTE Corporation today said it expects to set up a Research and Development (R&D) centre in Bangalore by the year end, and has also decided to establish a manufacturing unit in the country.
"We wish to set up a Research and Development unit in India. The proposal is being worked out, and we hope to have the centre before the end of this year," Mr Ye Wei Min, vice president of ZTE Corporation, said here.
Mr Min said that the new unit would be based in Bangalore but did not divulge the investment plans.
He said that the company has also decided to set up a manufacturing unit in the country.
"May be it will be a joint venture or we will undertake it independently. Broadly the facility would be focused on optical communications equipment and GSM and CDMA network equipment. But the specific product manufacturing will depend on the demand from the Indian market," Mr Min said.
Eventually, the unit could also become a manufacturing base for South Asian market, he said. - PTI
NEW DEHLI: Listing the advantages of Code Division Multiple Access (CDMA) system in providing affordable connectivity with high data rate for both urban and rural users, Dr Joseph Shapira, founder chairman of technology company Celletra presented some of the new products for network management, like CallSharper for load balancing, SmartChester for integrated measurement and control system during a session on access technologies.
“CDMA outperforms all others,” he claimed, giving the technology perspective on the system.
http://www.indiantelevision.com/headlines/y2k4/mar/mar185.htm#top
You are in a strange city, you want a nice lunch, but don’t know where and what exactly to do. Don’t worry. Soon your mobile phone will tell you the place and show you the way in graphics. If you so prefer, it will order for you too. So, when you arrive at the designated destination, you will have a manager to receive you and conduct you to the table where the lunch of your preference would be waiting for you.
May sound futuristic at the moment, but would become a reality soon. Why? Because of personalized services that would be available on your mobile phone. Location services, personal services, travel bookings, hotel search…. you name it and the service would be at your fingertips.
May sound futuristic at the moment, but would become a reality soon. Why? Because of personalized services that would be available on your mobile phone. Location services, personal services, travel bookings, hotel search…. you name it and the service would be at your fingertips.
“Networks that understand where you are and reach out to you (offering) multi-media services wherever you are is tomorrow,” said Bill Cowper, director, Asia-Pacific, Sun Micro Systems while delivering a keynote address at the second day’s conference on access technologies at the 12th Convergence India exhibition and conference here.
Cowper referred to the new chip that Sun Micro had developed , which was twice as fast as the existing one. Sun Micro’s Java-based chip is at the core of the networks that provide such subscriber specific services on the mobile.
“Sun Micro has played an integral part in developing soft switches for these networks,” he added.
“Managing content, rather than managing voice is the challenge for the next generation networks that are coming up. But this is a whole paradigm change,” Cowper said, suggesting network operators create flexible architecture and try innovating on services. The enormous success of NTT DoCoMo in Japan was purely due to their ability to manage content and promote several hundred content suppliers.
Listing the advantages of Code Division Multiple Access (CDMA) system in providing affordable connectivity with high data rate for both urban and rural users, Dr Joseph Shapira, founder chairman of technology company Celletra presented some of the new products for network management, like CallSharper for load balancing, SmartChester for integrated measurement and control system during a session on access technologies.
“CDMA outperforms all others,” he claimed, giving the technology perspective on the system.
LG Electronics, the world's fifth largest cellular phone maker, will export wideband code division multiple access (W-CDMA) phones to Orange SA, a wireless unit of France Telecom SA, a senior company official said on Friday.
http://times.hankooki.com/lpage/tech/200403/kt2004031918012512350.htm
``Orange plans to test mobile phones from LG Electronics and Motorola for its planned third-generation (3G) telephony service,'' said Park Moon-hwa, head of the company's information and telecom department.
Park made the remarks while attending the world's largest high-tech fair, the CeBIT, in Hanover, Germany.
``The shipments are expected to begin in the first half of this year,'' Park said, adding that the deal underscores LG 's technological competitiveness in 3G units.
Besides Orange, LG Electronics has been in talks with other European operators to supply its 3G handset, with shipments expected to rise in the second half of this year, he said.
03-19-2004 18:03
GSM license awarded in Sierra Leone
http://www.cellular-news.com/story/10869.shtml
Datatel GSM has been awarded a GSM wireless licence by the Ministry of Transport and Communications in the Republic of Sierra Leone. The license will allow Datatel GSM to construct a wireless network using GSM and CDMA technology to provide mobile, fixed wireless and data services to businesses, Non Government Organizations (‘NGO’s’) and consumers in Sierra Leone.
Everybody is aware of the excitement surrounding the launch of ‘3G’ wireless services in Europe. Less hype surrounds the very real impact GSM wireless services are having in the emerging markets of Africa. Traditionally landline services have been the preserve of the chosen minority – high usage charges, long delays on implementation and poor standards of service prevented the widespread use of telephone services. Affordable GSM wireless services have changed this and now the ability to communicate on low cost mobile phones is becoming as common a sight in Africa as in Europe or North America.
Sierra Leone, with landline penetration of under 0.5%, typifies the traditional African market for telecommunications. However, Sierra Leone is now poised to benefit from substantial economic growth driven by political stability, deregulation and considerable foreign investment. Growth in investor and consumer confidence, greater freedom of movement and a growing awareness of wireless services are resulting in significant demand for reliable and cost effective telecommunications services.
Datatel GSM is positioned to benefit from this trend. The company is a partnership between the established Leone operator Datatel Connections, and the leading pan-African service provider, Gateway Communications. The companies have worked in partnership in Sierra Leone since 2000, delivering fixed-line and data services to the corporate, Government and NGO markets and offering calling card and dial-up Internet access to the residential market.
The company will launch services in Freetown in the second half of the year before extending network coverage to the provincial areas. The company intends to provide an extremely reliable and cost effective service by the rapid deployment of advanced GSM and CDMA infrastructure and the application of best business practises.
Christian Ogoo, Managing Director of Datatel GSM commented: “Sierra Leone is undergoing significant economic development and social change and we are proud to be able to play a part in this development. The award of the licence builds on our existing position in the communications market and signals our continued commitment and investment in the country.”
Wristwatch CDMA telephone weighs 98 grams Prev Next
http://www.gizmo.com.au/public/News/news.asp?articleid=2705
Korean electronics manufacturer Telson will release its new TWC 1150 wrist-wearable mobile phone into the Indian, Korean and US markets this month. The wristwatch phone is the world’s lightest CDMA phone, and comes with a full range of features including a detachable camera, voice and call recording, answering machine, voice recognition, voice dial, a hands-free (loudspeaker) facility and predictive text input available for SMS. It was conceived and is being marketed as an exclusive, high-priced item and it certainly looks VERY space age!!!
The Telson TWC 1150 is a wristwatch designer phone specifically designed for the young generation.
It weighs only 98 grams despite all the embedded functionality, and can be answered in one of three ways – via the loudspeaker in hands-free mode, via an infrared (wireless) earpiece and via a conduction from a metal ring on your finger (it comes with the phone) which connects to your wristwatch, and enables you to listen to the caller by bringing your finger close to the ear.
The high performance battery of the phone enables talk time up to 100 minutes and standby time up to 150 hour.
Telson TWC 1150 is equipped with a plug-in 330,000 pixel digital camera that is included in the handset kit.
Click image to enlarge Click image to enlarge
It has a capacity to save up to 80 pictures which can be attached to the unique phone book.
The Phone Book has a facility to store up to 200 entries with 4 numbers, email id and URL and Photo caller id so that whenever you receive calls the photo of the caller will be displayed on the screen. One can even set up to seven blinking colours depending on the caller's group.
The Telson TWC 1150 phone with external attachable camera is priced at INR23,900 (AUD$700 ) in the Indian market and will go on sale in Korea and the US next week at an as yet undetermined price. It is being offered in India on an outright sale basis only
iSuppli: China’s electronic growth to continue in 2004
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http://www.digitimes.com/NewsShow/Article.asp?datePublish=2004/03/19&pages=PR&seq=201
"iSuppli anticipates that the subscriber base for popular PHS handsets will expand only moderately as local service providers place their heaviest bets on CDMA and the forthcoming issuance of 3G licenses."
By Joseph Abelson, iSuppli/Stanford Resources [Friday 19 March 2004]
As the first quarter of 2004 draws to a close, it is nearly certain that the spectacular growth of electronics manufacturing and semiconductor consumption experienced by China during 2003 will continue unabated through the balance of this year. Fueled by the relentless migration of manufacturing from higher-cost regions, the rapid expansion of China’s domestic consumer markets, and the steady march of Chinese-branded products onto the shelves of foreign retailers, the collective foot of this global production powerhouse is pressing as forcefully as ever on the accelerator pedal.
Examine virtually any end market application and you’ll find China’s 2004 outlook is up and to the right. China's production of electronic equipment is expected to rise to US$185.8 billion in 2004, up 11.1% from US$167.2 billion in 2003, as shown in the chart below. Production will increase to US$270 billion by 2007, iSuppli/Stanford Resources predicts.
PC production to hit 48 million units
iSuppli projects that China’s total production of PC hardware will top 48 million units during 2004, up 29% from 2003. To satisfy the surging worldwide demand for PCs, Taiwanese ODM makers are pushing increasing volumes through their China plants.
Although in the past, most PC produced in China were desktop models, the country will manufacture nearly equal volumes of both portable and desktop computers in 2004. From 2005 forward, laptops will represent an increasingly greater share of China’s total output.
TV production robust, but not yet digital
China, long a global production base for TVs, will build a total of 58.2 million sets during 2004, up 7.4 % from 2003, iSuppli predicts. China’s domestic market is expected to consume roughly 61% of the total output, with the remainder destined for export.
Traditional CRT TVs now account for nearly all of China’s production. However, the largest domestic makers are also investing heavily in flat-panel technology, especially LCD, in order to capitalize on the projected growth in global demand. With Beijing slow to commit to a standard for digital broadcasting, iSuppli believes that Chinese companies will produce only small quantities of digital sets during 2004.
China to increase share of global handset production
Of the estimated 570 million global handset shipments in 2004, iSuppli forecasts that China will produce 211 million, or 44 million more than it did during 2003. This will result in China commanding roughly 37% of global handset production in 2004. This outcome places the country on a trajectory to produce 45% of the global unit output by 2007, iSuppli predicts.
Domestically, China’s seemingly insatiable appetite for telecommunications will drive indigenous OEM makers to deliver an estimated 50 million units this year. iSuppli anticipates that the subscriber base for popular PHS handsets will expand only moderately as local service providers place their heaviest bets on CDMA and the forthcoming issuance of 3G licenses.
Broadband access, the next “killer application”?
According to China’s Ministry of Information Industry (MII), only 25% of the country’s estimated 72 million Internet users had broadband access at the end of 2003. iSuppli believes that both China Telecom and China Netcom will make sizable investments in DSLAM technology during 2004 to satisfy the rising consumer demand for bandwidth. Unit shipments of data communications equipments, like routers and switches, is expected to rise by 40% or more this year, while an expanding export market will fuel an estimated 10% growth in the production of central office equipment (COE) hardware, according to iSuppli.
Automotive electronics hit the highway
Strong domestic demand for automobiles, along with the migration of foreign automotive electronics manufacturing to China, are positioning this industry for dramatic growth through the balance of the decade. According to iSuppli, Chinese production of automotive electronics systems will grow nearly 40% this year and will attain a level of US$5.5 billion by 2007. From car stereos to antilock braking systems (ABS) to remote keyless entry systems, Chinese and foreign manufacturers are moving swiftly to establish the country as a major design and production base for a wide range of automotive applications.
So what does it mean?
The favorable outlook for China’s electronics industry encompasses nearly every application market and should therefore afford considerable opportunity to almost any company in the Chinese electronics supply chain, regardless of technology or end market strategy. As always, some will do better than others, largely on the basis of their capability to manage effectively in this highly dynamic and unpredictable environment.
The high rates of growth projected for China will subject all links in the supply chain to unprecedented levels of stress, a condition that will become particularly acute as lead times for certain components grow longer, as predicted by iSuppli. The best-performing companies will be those with the deepest understanding of their customers’ requirements, the most flexible planning systems and business processes and the discipline to maintain an intense focus on those few market opportunities that represent the greatest potential for revenues and profits growth.
For the companies that have these attributes, 2004 will be remembered as a very good year.
Joe Abelson is the director of emerging markets for iSuppli/Stanford Resources. Abelson is responsible for research and consulting regarding China and India.
China electronic equipment forecast (US$m)
2002
2003
2004
2005
2006
2007
China
143,446
167,163
185,842
207,500
238,794
270,050
Worldwide
962,264
1,001,539
1,081,443
1,146,809
1,205,776
1,280,026
China percentage of forecasted worldwide revenues
14.9%
16.7%
17.2%
18.1%
19.8%
21.1%
Source: iSuppli, compiled by DigiTimes, March 2004.
BEIJING, Mar. 19 (Xinhuanet) -- Datang Telecom Technology and Industry Group announced yesterday that it has won the bid to supply telecom equipment and services to China United Telecommunications Corp. for the latter's third-stage CDMA network expansion project.
http://news.xinhuanet.com/english/2004-03/19/content_1373833.htm
The company has signed the supply contract valued at 118 million yuan (US$14 million) with China Unicom's Shaanxi Province, The Beijing News reported today.
Previous to the cooperation, Datang had won deals for China Unicom's previous two expansion projects.
Due to the slack market, Datang will probably report loss for the previous year, according to its latest notice.
(Shanghai Daily)
China Unicom says users rise 1.9 pct in February
Reuters, 03.18.04, 6:44 AM ET
http://www.forbes.com/technology/newswire/2004/03/18/rtr1303366.html
HONG KONG, March 18 (Reuters) - China Unicom Ltd <0762.HK>, the smaller of mainland China's two huge mobile carriers, on Thursday said its subscriber base rose by 1.9 percent during the month of February to 95.39 million users.
The company said users on its older GSM standard network, which uses lower rates to win market share from bigger foe China Mobile (Hong Kong) Ltd <0941.HK>, increased 1.3 percent from the previous month to 74.51 million in January.
Customers on its newer CDMA-standard system rose by four percent during the month to 20.87 million.
Copyright 2004, Reuters News Service
Hutch, Airtel lead the cellular race: TNS Celltrack study
http://www.indiantelevision.com/mam/headlines/y2k4/mar/marmam59.htm
Indiantelevision.com Team
(18 March 2004 5:00 pm)
MUMBAI: "Mirror Mirror on the wall, who's the fairest of them all?" With so many cellular network services in the fray, competition is expected to be tough as the companies scramble to live up to customer expectations.
The latest annual study done by TNS Celltrack reveals that cellular service providers, Hutch and Airtel have captured top rankings in meeting customer expectations.
On the other hand, CDMA players Tata Indicom and Reliance Infocomm are still far below in the customers' reckoning and MTNL, the traditional cellular operator has appeared at the bottom of the heap.
The final tally for the top five performers among individual operators has Hutch leading with a TRI*M Index of 99 in Gujarat, the next three operators from Madhya Pradesh - Idea, Reliance Infocomm and BSNL lead with 93, 91 and 90 TRI*M scores respectively. Hutch, Mumbai figures in the fifth slot with a TRI*M score of 84. Reliance Infocomm has done extremely well in MP considering it's way below in the overall ranking.
TNS used its proprietary TRI*M Stakeholder Relationship Management System, wherein the TRI*M Index is a measure of the 'intensity of retention' and takes into consideration both the subscribers' level of satisfaction with the service provider as well as the level of retention and loyalty towards the service provider.
The TRI*M Index of cellular phone subscribers at 70 is distinctly higher as opposed to CDMA subscribers, at 54. And inspite of the CDMA operators' ability to attract customers and grow the customer base substantially in 2003, the CDMA/ WLL operators have not been able to anticipate and meet customer expectations, the study revealed.
TNS zeroed in on 4,921 mobile users using a structured questionnaire across the 13-telecom circles, covering both GSM and CDMA service providers. While the study covered about 75 elements of the subscriber-service provider relationship, the parameters were whittled down to eight broad dimensions namely, network and coverage, value added services, company image, recharging processes and procedures (among prepaid), purchase process, billings and payments, tariffs and pricing and customer care/ helpline. Fieldwork for the study was conducted between November to December 2003.
TNS India Vice President, Stakeholder Management Division Abraham Karimpanal said, "Looking at the performance of the cellular industry over time, we can see that the overall performance was continuously increasing until 2002. However, with the customer base almost doubling from 2002 to 2003, the TR*M Index marginally dropped from 72 to 70 - the service providers need to 'delight' the customers a lot more to retain them."
The cellular circles (in alphabetical order) and the service providers covered in TNS Celltrack Study
S.No Telecom Circle Service providers
1 Andhra Pradesh
Hutch, Idea, Bharti, BSNL, Tata Indicom (CDMA) and Reliance Infocom (CDMA)
2 Chennai
Bharti, Hutch, RPG, BSNL, Tata Indicom (CDMA) and Reliance Infocom (CDMA)
3 Delhi
Bharti, Hutch, Idea, MTNL, Tata Indicom (CDMA) and Reliance Infocom (CDMA)
4 Gujarat
Hutch, Idea, Bharti, BSNL, Tata Indicom (CDMA) and Reliance Infocom (CDMA)
5 Karnataka
Hutch, Spice, Bharti, BSNL, Tata Indicom (CDMA) and Reliance Infocom (CDMA)
6 Kerala
BPL, Escotel, BSNL, Bharti and Reliance Infocom (CDMA)
7 Kolkata
Bharti, Hutch, BSNL and Reliance Infocom (CDMA)
8 Madhya Pradesh
Idea, Reliance, Bharti, BSNL and Reliance Infocom (CDMA)
9 Maharashtra
BPL, Idea, Bharti, BSNL, Tata Indicom (CDMA) and Reliance Infocom (CDMA)
10 Mumbai
BPL, Bharti, Hutch/Orange, MTNL, Tata Indicom and Reliance Infocom (CDMA)
11 Punjab
Spice, Bharti, BSNL and Reliance Infocom (CDMA)
12 Tamil Nadu
BPL, Aircel, BSNL, Bharti, Tata Indicom (CDMA) and Reliance Infocom (CDMA)
13 UP – West
Escotel, BSNL, Bharti and Reliance Infocom (CDMA)
Interestingly, in case of the GSM service providers (cellular), customers seem satisfied with the 'ability to make and receive calls in any part of the city', however, the service providers have fallen short in meeting customers expectations when it comes to coverage within buildings, in basements or in lifts. The corporate image of the service provider continues to be an important aspect in driving retention and most service providers have been successful in building a positive and favorable image among the subscribers.
The study also revealed that 'Error free' and 'accurate' bills, being promptly delivered is something that the customers seem to be taking for granted and have little impact on retention. On the contrary, non-delivery on these could cause a lot of disgruntlement and unhappiness with the service provider.
Another revelation was that customers seemed very peeved with the amounts they had to pay for local and STD calls. The cellular industry has performed below average in various aspects related to 'customer care / helpline'. These include 'time taken before someone attends to you', their 'ability to resolve complaints/ queries in the first instance', 'overall time taken to resolve complaints', call center personnel's ability to take decisions, 'knowledge of customer care personnel about tariff plans and schemes' and 'the promptness in taking action on complaints'.
While in the case of CDMA subscribers, performance of the network is a key driver for building customer relationships as well. The study said that while subscribers seem satisfied with most aspects of the network, 'coverage while roaming' was something subscribers had to grapple with and was leading to discontent. The subscribers of CDMA services have a positive corporate image of their service provider particularly when it comes to 'a company that is financially strong' and 'being a company that is credible and you can trust'.
The efforts made by CDMA operators in lowering 'entry barriers' and facilitating the 'ease of acquisition', have been acknowledged by the subscribers. However, a big concern for CDMA subscribers was found to be in the area of 'billings and payments'. Subscribers seem upset with not receiving bills promptly and the bills not being accurate or error free. Also the way CDMA operators remind about dues and giving insufficient notice before debarring service for non-payment of dues was making customers extremely unhappy.
Qualcomm eats hat in mobile Java deal
BREWing up some changes
http://www.theinquirer.net/?article=8304
By Elizabeth Biddlecombe in San Francisco: Thursday 13 March 2003, 19:54
IN WHAT MIGHT BE SEEN as the ultimate affirmation, Qualcomm announced today that it will be providing J2ME (or mobile Java) capabilities on its CDMA chips.
Specifically Qualcomm CDMA Technologies will support the technology on its Mobile Station Modem (MSM) chipsets, providing better performance for existing Java applications as well as allowing Qualcomm's chipsets to be compatible with other Java-compliant devices.
The announcement is significant because in some quarters Qualcomm's BREW (Binary Runtime Environment for Wireless) execution environment has been seen as a competing technology to Sun Microsystems's J2ME.
This is despite the fact that J2ME has been deployed onto 75 million handsets to date and is deployed by 34 carriers versus the 4.6 million BREW-enabled sold and six carrier customers (all operating CDMA networks) for BREW.
Some carriers are beginning to experiment with both technologies. For instance Qualcomm has announced over the past two months that it is working with both KDDI and China Unicom, both of whom also use J2ME. BREW and J2ME are not exactly analogous since the latter comprises both an execution environment and a language whereas the BREW platform supports applications written in the C++ programming language.
"Nothing prevents [BREW and J2ME] from co-existing on a cellphone," Nicolas Lorain, product line manager for the J2ME wireless Java platform at Sun Microsystems told The Inquirer. "At the end of the day it is the wireless operators that are going to make the decision." However, he added, "[The deal] confirms J2ME as the leading solution for the development and deployment of wireless data services."
For Sun the deal means an inroad into the CDMA market. While J2ME is currently being used by carriers using a range of networking technologies, Qualcomm has more than 80% of the market for CDMA chipsets.
"It will accelerate the rate of adoption in the CDMA space, making it easier for CDMA manufacturers and operators to choose J2ME," said Sun's Lorain. He added that Qualcomm's dominant position in the CDMA chip market will mean a consistent J2ME implementation across the majority of CDMA chips, making life easier for application developers.
Qualcomm is trying to push its way into other networking technologies, particularly in Europe, showing GSM/UMTS phones using its chipsets at the recent 3GSM show in Cannes. Also at Cannes it demonstrated BREW-based applications on GSM/GPRS and UMTS handsets and J2ME applications running on a Java virtual machine sitting on top of a BREW client running in a UMTS device.
Even as device developers use Java to full effect for entertainment services, the technology is also being worked into vending machines so that price changes, for example, can be effected remotely across all machines rather than each machine requiring a visit from a technician
Qualcomm has been issuing releases of late announcing content providers such as Sega and Sony writing to the BREW specification. Its approach differs to that of Sun's in that Qualcomm takes an active part in provisioning BREW services for carriers as well as providing a clearinghouse for application developers and mobile operators to interact over Qualcomm certified applications.
While it may be dominant, developers complain that the "Write Once, Run Anywhere" marketing message for Java has failed to measure up to the truth. In an effort to codify developer implementations Sun announced in January its Java Technology for the Wireless Industry (JTWI) initiative, which set out guidelines for implementing the technology on mobile devices. µ
China Mobile profits rise 9% on SMS
By Financial Times reporters
Published: March 18 2004 8:43 / Last Updated: March 18 2004 8:43
http://news.ft.com/servlet/ContentServer?pagename=FT.com/StoryFT/FullStory&c=StoryFT&cid=107...
China Mobile, the country's largest wireless carrier, said on Thursday net profits for 2003 rose 9 per cent to Rmb35.6bn ($4.3bn) as strength in its subscriber base and short messaging service business offset intense competition in voice services.
For the full year revenues jumped 23 per cent to Rmb158.6bn last year, while earnings before interest tax, depreciation and amortisation were up 19 per cent to Rmb92.3bn. Net
profits were Rmb35.5bn. The company declared a dividend of HK$0.36 per share, up 12.5 per cent from HK$0.32 in 2002.
China Mobile said its short messaging service (SMS) business continued to be the primary source of its growth, with the number of messages sent last year soaring to 93.5bn pieces from 40.4bn in 2002.
The company's subscriber base jumped to 141.6m by the end of 2003 with the acquisitions of provincial networks from its parent. Since its listing in 1997 with just two networks, the company has spent about $50bn buying 19 provincial networks in four tranches. The company announced plans last December to purchase the remaining 10 networks from the parent this year, giving it a national footprint.
However, average revenue per user (ARPU) per month continued to decline, dropping 11 per cent to Rmb102 from Rmb115 a year ago, as the carrier faced increasing competition from its wireless rival China Unicom. China Unicom has 94m subscribers and is aggressively expanding its code division multiple access (CDMA) network.
China Mobile's traditional voice service, meanwhile, is threatened by a low-end roaming wireless service, or Xiaolingtong, offered by fixed-line carrier China Telecom.
China Telecom said on Wednesday brisk demand for Xiaolingtong helped boost its 2003 earnings by 52 per cent. The company is also expanding the service to high-end markets such as Shanghai.
Analysts have expressed concerns over the sustainability of China Mobile's rapid earnings growth, which have been fueled by an expansion from purchasing networks from its parent.
Wang Xiaochu, chairman of China Mobile, said on Thursday the company would pursue "organic and external growth" and nurture new contributors to revenue.
One major contributor would be a series of youth market-targeted new services, branded M-Zone, that the company launched last year. The services have won 10m subscribers and contributed 10.2 per cent of the group's revenue last year.
China Mobile's share price dropped 0.65 per cent to HK$24.1 in afternoon trading on Thursday.
Prepaid refilling to go virtual
V Kannan in New Delhi / March 18, 2004
http://inhome.rediff.com/money/2004/mar/18betterlife.htm
Prepaid cards have changed the wire-free world in a big way. They have turned mobile phone connections a lot more affordable, giving the subscribers considerable relief from the month-end bill pangs.
Walk in to that corner shop which also sells prepaid cards, go mobile and stay connected. Things have never been so easy.
But the picture is not so perfect. The catch lies in refilling.
Your initial enthusiasm evaporates when your 'friendly shopkeeper' informs you that he doesn't have the refill card of your operator. And the one he might have won't suit your budget. In many cases, the subscribers are forced to buy cards with higher denominations.
India Prepaid Services Ltd, along with Prepaid Company of South Africa, has come out with a virtual prepaid airtime service that the company says will help the card holders recharge their mobiles, connected by any operator, from a third party retailer.
The system works like this: IPSL has set up servers in Delhi and Mumbai, where the company hopes to start operations by this month-end.
The servers are connected to retail point of sales in the front-end and to the mobile operators in the back-end.
The front-end retailer can be anyone from a shop in a mall to a petrol filling station.
The retailer should have a cash register, a credit card swiping machine, or a computer billing machine that can be connected to the server through Internet using India Prepaid Services' proprietary software application.
Each retailer is assigned an identification number. When a customer approaches him to recharge, he only has to key in his personal identification number and the server deducts the keyed-in amount from the deposit the retailer has kept with the company.
The customer gets a slip for the transaction in which he will get he number to recharge the connection.
Though the subscriber can choose for any amount of refill, the actual talk time will defer from operator to operator.
Apart from the fixed terminal connected to the server, the company plans to introduce mobile terminals too.
Small shop owners can install a terminal by paying an amount to the company.
Once the deposit money is exhausted, the shop owner should make more payment and stay connected to the company.
These terminals are not connected through Internet and can be used by door-to-door sales men too.
India Prepaid Services has tied up with Bharti and Hutchison and will sell the virtual prepaid cards of Airtel and Hutch.
The service will be introduced in Mumbai and Delhi initially with 200 retailers.
The company plans to increase this to 2,000 by the year-end.
After gauging the response, the company plans to expand its network across the country, bringing CDMA operators into its fold.
For more details contact:
Delhi: 23367080 / Mumbai: 56595519
Oceanic Digital (Ja) signs US$30 million loan agreement with IDB
published: Thursday / March 18, 2004
http://www.jamaica-gleaner.com/gleaner/20040318/business/business1.html
Craig McBurnett (left), chief executive officer of Oceanic Digital Jamaica, addresses (left to right) Keith Evans, Inter-American Development Bank (IDB) Jamaica representative; Jennifer Carty-Peart, director of capital markets for FirstCaribbean International Bank; and Phillip Paulwell, Minister of Commerce, Science and Technology. They were participating in the signing of a US$30 million loan agreement between the IDB and Oceanic, at the Hilton Kingston Hotel, New Kingston yesterday. - Rudolph Brown/Staff Photographer
OCEANIC DIGITAL (Jamaica) Limited and the Inter-American Development Bank (IDB) yesterday signed a US$30 million loan agreement at the Hilton Kingston Hotel.
The loan is historic, as it is the first for Jamaica for the IDB Private Sector Department, established in 1994 to lend directly to the private sector without government sovereign guarantees.
The loan will enable Oceanic Digital (Jamaica) Limited, marketers of the MiPhone brand locally, to complete its nationwide build-out that will provide reliable telephone services throughout Jamaica.
Oceanic plans to provide high quality voice signals, high-speed Internet access and data services throughout the island.
"The loan will allow us funding for the completion of the network, our business plan going forward, as well as data and internet services," said Craig McBurnett, Oceanic's Chief Executive Officer.
Mr. McBurnett says the financing is also a sign that the IDB believes that there is a promising future in the Oceanic business plan for Jamaica.
MiPhone delivers cellular services to well over 70,000 customers under its MiPhone brand that offers Jamaicans the lowest mobile phone rates on the island. Recent expansion extends Oceanic's state-of-the-art CDMA network to Ocho Rios and the North Coast.
MiPhone products and services are distributed at locations island-wide, including company stores and independent dealers.
China Mobile, China Unicom FY Net Growth Likely Modest
By Loretta Ng
Of DOW JONES NEWSWIRES
http://sg.biz.yahoo.com/040318/15/3iuoa.html
HONG KONG (Dow Jones)--China's two giant mobile phone operators should report moderate earnings growth of about 10% for 2003, largely because the latest networks they purchased are located in less lucrative provinces.
Last year's SARS outbreak, intense competition for subscribers, and falling average revenue per user will combine with a growing reliance on prepaid customers in poorer parts of China to limit improvement in net profit, analysts said.
Locked in competition with a limited-range, cheap mobile phone alternative device called "Little Smart", China Mobile (Hong Kong) Ltd. (CHL) and China Unicom Ltd. (CHU), respectively the nation's No. 1 and 2 mobile phone operators, have been offering preferential tariff packages.
China Mobile is likely to report Thursday a net profit of CNY35.61 billion, according to a Dow Jones Newswires poll of eight analysts, up 8.8% from 2002's CNY32.74 billion.
Forecasts range between CNY34.20 billion from Citigroup Smith Barney and CNY36.50 from CLSA.
The biggest boost to China Mobile's earnings will come from the first full-year contribution from eight provincial networks acquired from its parent, which took effect in July 2002.
However, this deal, the company's fourth network acquisition since it listed in 1997, covered less wealthier parts of China than previous purchases.
The country's leading mobile phone company added 23.9 million customers, bringing its global system for mobile communications, or GSM, users to 141.6 million by the end of 2003.
Investors Looking For Higher Dividend
China Unicom, China Mobile's smaller rival, is likely to report on March 25 a net profit of CNY5.06 billion for 2003, according to a poll of 24 analysts conducted by Thomson First Call, up 11% from a year earlier.
Forecasts in the poll range between CNY4.56 billion from Bear, Stearns & Co. and CNY5.93 billion from Credit Suisse First Boston. Earnings are likely to be supported by China Unicom's first round of network acquisitions, covering nine provinces, in late 2002.
The company added 10.5 million users to its core GSM business and 10.7 million code division multiple access network subscribers last year, bringing total customers at the two networks to 63.9 million and 16.9 million respectively.
Late last year, it announced the acquisition of nine remaining networks from its parent for CNY3.2 billion in cash. The deal wasn't completed until the end of 2003 and won't be included in the company's earnings until 2004.
China Unicom's 2003 net profit won't just reflect a tough business environment, but also the impact of provisions to cover the falling value of its ailing paging operation, while the two-year-old CDMA business is unlikely to have reached breakeven for the full year.
A loss of some of its own GSM customers who switched networks as China Unicom tried to attract CDMA users probably also weighed on the bottom line last year, analysts said.
China Unicom has said it will focus on profitability at its CDMA division instead of subscriber growth.
It began scaling back subsidies for its handsets in January last year and then tried to lure customers by offering low-cost alternatives, purchased in bulk orders from local mobile phone vendors, and by launching a prepaid CDMA system. It will soon introduce dual-mode handsets, allowing users to switch between GSM and CDMA, in mid-2004.
Looking ahead, analysts said they are awaiting news on China Mobile's final set of network purchases. The company has said it is in discussions to buy the remaining 10 provincial mobile networks its parent company owns.
With both mobile operators close to exhausting their room for growth through acquisitions from their parents, analysts expect the companies to gradually develop into dividend-yield plays. The two will likely offer increasing dividends in future years.
BSNL to invest Rs2000cr in Internet
http://sify.com/finance/equity/fullstory.php?id=13432439
Thursday, 18 March , 2004, 08:12
BSNL plans to invest Rs 2,000 crore on Phase II of its national Internet broadband network infrastructure. Another Rs 2,000 crore would be invested on upgradation of its copper wire line network with a view to making it compatible with modern technology-based applications.
Stating this during an interface with newspersons on Wednesday, V.P. Sinha, Chairman and Managing Director, said that BSNL was quite upbeat on prospects pertaining to its Internet-based business.
Towards this end, MoUs have been entered into with Korea Telecom and Microsoft.
While Korea Telecom would prepare the roadmap for the rollout of BSNL's broadband services, Microsoft would be the regional language software provider.
Broadband would be the "bread and butter of the future", he said.
Earlier, addressing the National Convention of Telecom Officers of BSNL, Sinha outlined BSNL's vision of emerging as the largest telecom player in South-East Asia.
Towards this end, the company proposes to augment its cellular network capacity to 15 million lines.
Its CDMA capacity, too, would be augmented to a great extent. "BSNL will be able to deliver whatever the customer wants."
Sinha stressed on the imperatives for "BSNL's long-term survival", and came down heavily on "vested interests" who were determined to see that BSNL's initiatives did not succeed.
"My hands and feet are tied and I have been thrown into a pond, and then I am being asked to run an Olympic race. Every other day, I meet a different person who claims to be my boss," he said in an apparent reference to interference from people outside the BSNL fraternity.
According to him, the "review policy" of the Government was a hindrance to BSNL's growth plans as implementation of business plans is often held up on the pretext of reviews.
He was of the view that the Central Government, and not BSNL, should bear the burden of pension of those former employees of the Department of Telecom - of which BSNL was a part before it was corporatised - who were either retired or had left the organisation.
S.K. Jain, Director of HRD, said that the Presidential order pertaining to fixation of pay scales of BSNL's Group `B' officers has just been received and a notification in this regard would be issued within the next few days.
I believe Qualcomm sued and won because IDCC had stolen items
from engineers at Qualcomm.
Alcatel's Multimedia Messaging Services (MMS) Enhances MetroPCS CDMA Service Portfolio in the US
http://www.prnewswire.co.uk/cgi/news/release?id=119237
PARIS, March 16 /PRNewswire/ -- Alcatel (Paris: CGEP.PA and NYSE: ALA) today announced an agreement with MetroPCS, Inc. to provide the Alcatel Multimedia Messaging Services (MMS) product suite, enabling MetroPCS customers access to multimedia messaging via wireless devices. This is the first MMS contract with a CDMA communications network operator for Alcatel in the U.S.
The Alcatel MMS suite is well adapted to address the needs of mobile service providers for flexible and easy to implement MMS infrastructure. Thanks to high levels of openness and interoperability it can bring additional message capacity to service providers by seamlessly integrating with existing messaging services. Service providers also benefit from smooth integration and interface with existing Wireless Application Protocol/Push Proxy Gateway, e-mail servers and SMS-C systems, among others . Additionally, the Alcatel MMS suite enables sophisticated billing policies that support tiered pricing models based on size and type of content.
The unique Proxy Platform software architecture used by the Alcatel MMS suite guarantees high performance, ease of installation and maximum scalability, which reduces the total cost of ownership for mobile service providers. Recently, during the 3GSM World Congress in France, the powerful Alcatel MMS platform set a new industry record with 150 MMS per second at a sustained rate with the complete MMS cycle processed on a Linux-powered Intel configuration, which represents more than half a million MMS processed per hour. With the ability to deliver MMS at such a high rate, MetroPCS can achieve new revenue generation opportunities, while providing new and exciting services for customers.
"MetroPCS is committed to offering simple and affordable wireless service to consumers. Adding Alcatel's MMS suite to our network allows us to continue to offer our customers the most advanced wireless options," said MetroPCS President and CEO Roger Linquist.
"MetroPCS is a progressive and customer-focused company on the rise," said Matthieu Cornillault, vice president of Alcatel's Mobile Solutions activities for North America. "With more multimedia capable wireless phones being sold than ever before, it is significant that MetroPCS delivers the best and latest technology to their customers. Alcatel's well-proven MMS suite allows for additional revenue generation services while attending to consumers' growing desire for innovative and more personalized ways to communicate with peers."
About MetroPCS Inc.
Dallas-based MetroPCS is a provider of wireless communications services with a total of 14 PCS licenses in the greater Miami, San Francisco, Atlanta and Sacramento metropolitan areas. MetroPCS offers customers flat rate plans with unlimited anytime local and long-distance minutes with no contract. The company is among the first wireless operators to deploy an all-digital network based on third-generation infrastructure and handsets. For more information, www.metropcs.com
About Alcatel
Alcatel provides communications solutions to telecommunication carriers, Internet service providers and enterprises for delivery of voice, data and video applications to their customers or to their employees. Alcatel leverages its leading position in fixed and mobile broadband networks, applications and services to bring value to its customers in the framework of a broadband world. With sales of Euro 16.5 billion in 2002, Alcatel operates in more than 130 countries. For more information, http://www.alcatel.com
Distributed by PR Newswire on behalf of Alcatel
3G Phones Dominate Domestic Market
http://times.hankooki.com/lpage/tech/200403/kt2004031619290212350.htm
By Kim Tae-gyu
Staff Reporter
On the back of solid domestic demand, code division multiple access (CDMA) 2000 1x EV-DO (evolution data optimized) phones continue to gain clout in the Korean market.
Local handset makers on Tuesday said they will hike EV-DO phone production to meet Korean customers' intensifying thirst for the third-generation (3G) gadgets.
Samsung Electronics, the third-largest cell phone maker in the world, said it will introduce 40 EV-DO phones this year to the local marketplace among the total of 50 new models planned.
The mobile phone giant churned out around 40 new products last year in Korea with top-of-the-line EV-DO phones accounting for 70 percent of them.
The world's fifth-biggest player LG Electronics, which rolled out only nine EV-DO models among a total of 32 last year here, plans to almost triple 3G phones to around 25.
Pantech Group, the remaining one of Korea's Big Three, will also join the trend by increasing the portion of the new EV-DO models to over 50 percent this year in Korea from 12 percent a year ago.
Experts attribute the EV-DO phone fever to the budding mobility-specific multi-media service market, as the high-end gear enables users to download and access large-sized data like movies or TV dramas.
EV-DO provides a peak rate of over two Mbps with an average throughput of over 700 Kbps, deploying killer applications like video conferencing or video on demand.
``Koreans are more and more leaning to multi-media services on the move, and that's is a driving force of the strong demands for EV-DO phones,'' said Stan Jung, an analyst from LG Securities.
Two effects in opposite directions
Market sources said the booming EV-DO phone market will give rise to both positive and negative repercussions throughout the telecom industry.
Wireless operators greeted the news, as their revenues from wireless data services are expected to skyrocket while handset makers worry about the shortages of CDMA chips and high royalty payments.
``As more Koreans snap up and carry EV-DO phones, mobile operators revenue will soar on the strength of non-voice service revenues,'' Jung predicted.
Wireless data services have buoyed Korean mobile outfits over the past years.
For example, the nation's biggest player SK Telecom earned 1.32 trillion won last year from the segment, carving out 13.9 percent of the total sales of 9.52 trillion won, and looks to extend the portion to around 20 percent this year.
Rival KTF also cashed in 380 billion won from the new-found source of growth on 4.3 trillion won in turnover throughout 2003.
In contrast, the EV-DO chip shortage and high royalty payments weigh on Korean cell phone makers, according to Daishin Securities telecom analyst Lee Young-joo.
``As long as CDMA phone production is concerned including EV-DO models, the baseband chip is always a major concern for handset makers,'' Lee said.
Earlier last week, Korean handset makers pointed their fingers at Qualcomm, the firm which retains a strong lock on the CDMA equipment market, for the shortage of CDMA chips.
They claimed Qualcomm has offered only 70~80 percent of baseband chips from among the original orders with lead times sometimes stretching to well over 15 weeks.
It was not the first time for Qualcomm to come under fire here as the U.S.-based giant levies a royalty of 5.25 percent based on the total handset price excluding packing and batteries instead of the chip and related software prices.
``As Korean handset makers swell up production of pricey EV-DO phones, which casually contain cameras and other expensive peripherals, their royalty burden will increase under the current royalty system,'' Lee said.
Qualcomm has declined to unveil its total royalty revenue but Korea's parliamentary data showed last year that the nation's firms have paid over 1.5 trillion won in technology usage fees to Qualcomm since 1995.
KTF to develop W-CDMA tech with Samsung, LG
http://www.koreaherald.co.kr/SITE/data/html_dir/2004/03/17/200403170021.asp
Wireless service provider KTF Co. will collaborate with local cellular phone manufacturers to develop technologies related to wideband CDMA, or W-CDMA, in an attempt to save its struggling third-generation mobile platform from further commercial failure.
The country's second-largest mobile carrier said yesterday that it will launch a technical development team with 16 other companies in the wireless industry, including the two major handset makers - Samsung Electronics Co. and LG Electronics Inc.
The team is expected to focus on building a stronger core network for W-CDMA operations, thus providing flexibility in both circuit and packet switching, and enhancing coverage and receiver technologies.
KTF officials hope that possible technology advancements will provide a breakthrough for the company's W-CDMA services, which have been largely ignored by the public due to the expensive handsets and lack of related content.
Only about 1,100 W-CDMA cell phones have been registered since KTF and SK Telecom, the country's largest wireless service provider, launched the services last December. By contrast, the country's mainstream third-generation mobile platform, CDMA2000 1x EV-DO, has more than five million subscribers.
"We expect the technical development team to provide a solution to the critical technical flaws that have kept the W-CDMA platform from realizing its commercial potential, while giving us a better chance to advance on foreign markets where W-CDMA is quickly becoming mainstream," said Kim Yeon-hak of KTF.
Although CDMA2000 is dominating the battle for a third-generation mobile standard here, Korean companies are reluctant to give up on W-CDMA, which is considered to have greater potential on foreign markets.
Most mobile service providers in Europe have adopt the W-CDMA platform, mainly to avoid surrendering their wireless markets to U.S. telecom developer Qualcomm, which owns the patents for CDMA2000 technology.
(thkim@heraldm.com)
By Kim Tong-hyung
2004.03.17
Taiwan On Global Track To 3G Success
http://www.3g.co.uk/PR/March2004/6779.htm
16th March , 2004
ASIA : Taiwan is poised to fully exploit the mass market potential of 3GSM, the global next generation wideband mobile multimedia standard, said the GSM Association the world trade association for mobile operators - at a press conference in Taipei today.
As part of a global wave of 3GSM launches in 2004, Taiwan is gearing up to deliver cost effective and compelling multimedia services on the 3GSM (W-CDMA) platform, an evolution of the world leading GSM system, which today serves more than one billion people worldwide.
“Around the world 3GSM momentum continues unabated, thirty-six networks have already launched, and a further 40 are expected to launch by end 2004,” said Craig Ehrlich, Chairman of the GSM Association.
“Massive operator investment and the supply of 3GSM handsets coming on stream from leading vendors, combined with a wealth of exciting mobile content and a fiercely competitive market are all key factors that will rapidly unlock Taiwan’s mass market,” he added.
Taiwan was an early mover in the world of GSM, the first networks launched in 1995, today it has an astonishing 113 percent market penetration – the highest in the world.
3GSM builds on GSM’s unique heritage of seamless international roaming – the ability to make and receive calls using one handset and one mobile number across more than 200 countries. Worldwide, GSM users make more than one billion roaming calls a month.
“Global roaming and interoperability, massive value and variety of products and services are the unique hallmarks of a global open standard, the fruits of which Taiwan, its people and its industry already enjoy with GSM,” said Rob Conway, CEO and member of the board of the GSM Association.
“GSM is the world’s biggest commercial cooperative – a mobile telephony eco-system,” added Conway. “The global reach and breadth of the GSM industry keeps handset, infrastructure and application costs down, benefiting Taiwan’s operators and their customers - these economies of scale help explain Taiwan’s massive level of market penetration.
“3GSM continues the seamless global roaming culture while sustaining scale cost benefits,” Conway concluded.
The GSM Association visit to Taipei this week includes a private meeting with Jen-Ter Chien, Director-General, Directorate General of Telecommunications and with the GSMA’s Taiwanese member operators.
ASIA : Alcatel and DoCoMo Engineering announced that they jointly host the "3G Indoor Coverage Forum" in Tokyo, Japan, on March 9th to 10th, 2004. This Forum gathers 24 international mobile operators from 18 countries.
http://www.3g.co.uk/PR/March2004/6766.htm
In the context of the current UMTS uptake, the main purpose of this Forum was to support 3G operators so that they can accurately address the right challenges (investments, traffic and revenue boost) of the 3G indoor coverage. Such enhancement is indeed essential as new services introduced by 3G, like visio-conference, will require high capacity and excellent end-user Quality of Service in indoor areas such as high-rise buildings, underground and shopping centers.
On one hand, DoCoMo Engineering Inc. is demonstrating to the international operators participating in the Forum, the reality of NTT DoCoMo's FOMA®, the world's first commercial 3G mobile communications service based on W-CDMA technology. During an operational tour in downtown Tokyo, each operator could experience key 3G FOMA® applications, including i-mode®, a high speed packet transmission service at speeds of up to 384 kbps, in
different indoor conditions. This illustrated some of the DoCoMo Engineering's technological advances and patterns applications.
On the other hand, leveraging its international reach and its deep knowledge of European and Asian mobile operators' deployment needs, Alcatel is proposing a process to adapt and integrate DoCoMo Engineering's know-how into 3G worldwide indoor implementations. This comes on top of Alcatel's well-established GSM experience, of its current partners' portfolio management, like RFS and LGC Wireless, and of its turnkey project capabilities for cost-effective configurations deployments.
Masami Yamamoto, President of DoCoMo Engineering Inc. said, "NTT DoCoMo has been building up relationships with worldwide operators in order to promote FOMA®, the world's first commercial 3G mobile communication service based on W-CDMA technology. DoCoMo Engineering contributes to such promotion of W-CDMA by supporting vendors around the globe, especially for indoor engineering." He added, "We consider that the global market now needs to be more seamless and wireless. This is why Alcatel and DoCoMo Engineering jointly hosted the 3G Indoor Coverage Forum in Tokyo as an activity for 3G indoor promotion. We expect Alcatel's global marketing know-how and experience and our 3G indoor field experience will contribute to the success of tomorrow's 3G global market."
Paolo Semenzato, director of mobile radio access systems, technology and engineering of TIM, the leading mobile operator in Italy, stated, "Even if European countries usually focus much more on outdoor coverage, the continually expanding and international business centers, shopping malls and train stations in Europe will require top level indoor service conditions from the very beginning." He added, "As such, the cooperation on 3G indoor coverage which was demonstrated during this Forum between Alcatel and the DoCoMo Group in Japan is of prime importance for 3G services implementation in Europe."
Cliff Woo, deputy managing director & wireless networks director of
Hutchison 3G Hong Kong, Ltd., stated, "Operating cellular networks in the highly dense metropolitan area of Hong Kong, we at Hutchison have been working in the past years for the provisioning of superb indoor coverage for both 2G and 3G." He added, "The combination of Alcatel's and DoCoMo's 3G indoor coverage skills and know-how shown during this Forum will surely help us to get the best compromise between technical constraints and economical advantage, which will result in a key differentiating position."
Marc Rouanne, chief operating officer of Alcatel's mobile communications activities said, "The 3G indoor engineering concept is a key initial step of Alcatel's larger vision for end-user indoor behavior. Our customers now expect intercontinental seamless, wireless, and broadband services. As such, this partnership between Alcatel and the DoCoMo Group, focusing on today's and tomorrow's fixed and mobile telecom visions, consolidates the transfer of experience which, for months, Alcatel has been promoting between Japan and the rest of the world."
FOMA and i-mode are registered trademarks of NTT DoCoMo, Inc. in Japan and other countries
Openwave WAP2.0 Software and Services Supports Over 12 Million Subscribers of KDDI's "au" 3G Mobile Phone Internet Services
Monday March 15, 9:02 am ET
Openwave Market Leading Technology Helps Perfect the User Experience and Strengthens Customer Loyalty
http://biz.yahoo.com/prnews/040315/sfm029_1.html
REDWOOD CITY, Calif., March 15 /PRNewswire-FirstCall/ -- Openwave Systems Inc. (Nasdaq: OPWV - News), the leading provider of open software products and services for the communications industry, today announced that over 12 million subscribers are now using Openwave's WAP 2.0 technology via KDDI's "au" branded 3G mobile phone services (CDMA 1X and CDMA 1X WIN) based on CDMA2000 1x and CDMA 2000 1x EV-DO technology.
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"Openwave technology has allowed us to provide our subscribers with the industry's most sophisticated mobile phone data solutions," said Takashi Tanaka, Vice President, Solution Product Development Division, Solution Business Sector, KDDI. "Openwave has been an essential partner throughout the development, launch, and expansion of our "au" 3G services. Providing mobile phone internet services over an open, standards-based network is an important strategy for KDDI going forward. Openwave's scaleable solutions have also been effective in handling high user usage rates for CDMA 1X WIN and other services. We look forward to working with Openwave to further expand our subscriber base."
The Openwave WAP 2.0 technology implemented at KDDI includes Openwave® WAP 2.0 Gateway (Enhanced Service Framework: ESF), Openwave Mobile Device Manager, and Openwave Mobile Browser. These technologies combine to form part of the infrastructure for KDDI's 3G CDMA 1X and CDMA 1XWIN data services. Openwave WAP 2.0 Gateway ESF uses modular architecture and enables high-speed exchange between a device and the appropriate content applications as well as content adaptation service.
In responding to current subscriber needs, Openwave WAP 2.0 Gateway ESF represents a substantial improvement compared to early WAP standards, and by providing a sophisticated user experience, it contributes to the successful development of a new business model and creation of a rich application environment. Openwave's emphasis on complying with industry standards enables interoperability with a variety of devices, and it has developed architecture capable of handling a wide range of content delivery methods, including push and browsing applications.
"Openwave is proud to partner with KDDI in order to enhance the user experience," said Paul Anderson, general manager and vice president, Asia Pacific, Openwave Systems. "We are striving to maintain and strengthen customer loyalty by continuing to help deliver the industry's preeminent user environment. Our contribution to KDDI demonstrates that Openwave can respond not only to current requirements, but also to potential future needs associated with building and expanding next generation networks."
About KDDI
Under its Designing The Future byline, KDDI is building infrastructure that will underpin the coming "ubiquitous-network society." KDDI is working to become Japan's premiere Ubiquitous Solutions Company by providing superbly convenient, high-quality solutions built on its vast array of technology and the know-how accumulated from years of experience in the field. With over 16 million mobile phone subscribers and some 10 million wireline contracts, KDDI is rapidly growing, providing customers with an information network that can be accessed anytime and from anywhere. For more information please visit www.kddi.com.
About Openwave
Openwave Systems Inc. is the leading independent provider of open software products and services for the communications industry. Openwave's breadth of products, including mobile phone software, multimedia messaging software (MMS), email, location and mobile gateways, along with its worldwide expertise enable its customers to deliver innovative and differentiated data services. Openwave is a global company headquartered in Redwood City, California. For more information please visit www.openwave.com.
Cautionary Note Regarding Forward Looking Statements
This release contains forward-looking statements relating to expectations, plans or prospects for Openwave Systems Inc. that are based upon the current expectations and beliefs of Openwave's management and are subject to certain risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. In particular, the following factors, among others, could cause actual results to differ materially from those described in the forward-looking statements: (a) the ability to realize our strategic objectives by taking advantage of market opportunities in the Americas, Europe, the Middle East, and Asia; (b) the ability to make changes in business strategy, development plans and product offerings to respond to the needs of our current, new and potential customers, suppliers and strategic partners; (c) risks associated with the development and licensing of software generally, including potential delays in software development and technical difficulties that may be encountered in the development or use of our software; (d) the effects of our restructurings and the ability to successfully support our operations; (e) the potential negative reaction by our customers to our reduced size and market capitalization; (f) the ability to recruit and retain qualified, experienced employees; (g) the willingness of communication service providers to invest and improve their data networks; (h) the ability to successfully partner with other companies; (i) the ability to acquire additional companies and technologies and integrate such acquisitions; (j) increased global competition; (k) technological changes and developments; (l) general risks of the Internet and wireless and wireline telecommunications sectors; and (m) the uncertain economic and political climate in the United States and throughout the rest of the world and the potential that such climate may deteriorate further.For a detailed discussion of these and other cautionary statements, please refer to the risk factors discussed in filings with the U.S. Securities and Exchange Commission ("SEC"), including but not limited to the Company's Annual Report on Form 10-K for the fiscal year ended June 30, 2002, the Company's Quarterly Report on Form 10-Q for the quarter ended March 31, 2003, and subsequently filed reports. All documents also are available through the SEC's Electronic Data Gathering Analysis and Retrieval system (EDGAR) at www.sec.gov or from Openwave's Web site at www.openwave.com. The Company assumes no obligation to update the forward-looking statements included in this document.
NOTE: Openwave and the Openwave logo are trademarks and or registered trademarks of Openwave Systems Inc. All other trademarks are the properties of their respective owners.
CONTACT:
Openwave Systems Inc. Openwave Systems Japan K.K.
Michele Landry Emi Inoue/Hiroaki Tsuneyama
+1-650-480 4622 Tel: +81 3 5909 6175
michele.landry@openwave.com emi.inoue@openwave.com
hiroaki.tsuneyama@openwave.com
QUALCOMM Announces Professional Services Team for Truckload and Private Fleet
Monday March 15, 7:30 am ET
- Group Delivers Value-Added Solutions for QUALCOMM Customers -
http://biz.yahoo.com/prnews/040315/lam069_1.html
SAN DIEGO, March 15 /PRNewswire-FirstCall/ -- QUALCOMM Incorporated (Nasdaq: QCOM - News), the leader in mobile communications for the transportation industry, today announced the formation of the QUALCOMM Professional Services team to offer enhanced, value-added services and solutions for QUALCOMM truckload and private fleet customers. The Professional Services team will provide application installation, systems integration, testing, phased implementation training and complete project management, enabling QUALCOMM customers to achieve maximum value for their investment.
"We are pleased to announce the QUALCOMM Professional Services team, which is backed by more than 15 years of extensive fleet management experience and professional services with 2,000 enterprises," said Glynn Spangenberg, vice president and general manager, QUALCOMM Wireless Business Solutions. "The team will specialize in providing advanced mobile and IT service offerings that help customers achieve superior productivity and operational savings in their organization."
The QUALCOMM Professional Services team recently implemented enhancements and expanded offerings for its truckload and private fleet customers. These enhancements include the Activity Base Pay(TM) and Management Advisor(TM) solutions for the FleetAdvisor® system; the Message Abbreviator(TM) tool for QUALCOMM's OmniTRACS® and OmniExpress® mobile communications systems; and the Stop Management(TM) system for the OmniTRACS system.
QUALCOMM's Activity Base Pay solution provides an integrated set of business rules for customer-defined operations activities and determines driver pay based on those activities. An activity-based pay system enables motor carriers to pay or reward drivers based on achieving objectives related to idling, overspeeds and over-revs, which links driver compensation to improved profitability. The payroll module includes automated drivers' reimbursements for approved cash-based transactions.
QUALCOMM's Management Advisor is a business process with system tools that enable motor carriers to accurately retain, track and report on customer- defined performance metrics such as asset utilization and measure financial returns in real dollars.
QUALCOMM's Message Abbreviator is an integrated system tool that enables companies to create and utilize abbreviated words and terms for outbound messages, which reduces character counts and standardizes company-approved messaging to help fleets reduce overall messaging costs. Message Abbreviator works on all free form outbound messages, provides instant feedback on character reduction and functions in custom integration programs designed to deliver additional savings.
QUALCOMM's Stop Management system is a business process and integrated system tool that identifies begin-of-trip and end-of-trip events and assists in the exception management and reporting of planned and unplanned stops. These tools are designed to improve driver and asset utilization by notifying operations personnel of activity that is outside of company-defined parameters.
All Professional Services include application installation, systems integration, testing, phased implementation training and complete project management. Fees vary by job.
QUALCOMM has helped the transportation industry become more efficient since 1988 when the introduction of the OmniTRACS mobile communications system provided transportation companies with an innovative and effective way of managing logistics. Today, QUALCOMM's fleet management solutions continue to set the standard by offering products and services that meet and exceed the demands of a constantly changing marketplace. Now with FleetAdvisor®, a paperless solution to ensure DOT and IFTA regulatory compliance; GlobalTRACS®, an equipment management system for the construction equipment industry; OmniExpress®, a CDMA-based wireless communications system; and other industry-leading technologies, QUALCOMM continues to expand into new mobile markets.
QUALCOMM is the industry's global leader in providing high-value wireless data solutions with a Network Management Center that processes more than seven million transactions each day. QUALCOMM has shipped nearly 500,000 QUALCOMM mobile systems to businesses in more than 39 countries on four continents.
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 the S&P 500 Index and is a 2003 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 extent and speed to which FleetAdvisor, OmniTRACS and OmniExpress systems are 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 28, 2003, and most recent Form 10-Q.
QUALCOMM, FleetAdvisor, GlobalTRACS, OmniExpress and OmniTRACS are registered trademarks of QUALCOMM Incorporated. Activity Base Pay, Management Advisor, Message Abbreviator and Stop Management are trademarks of QUALCOMM Incorporated. All other trademarks are the property of their respective owners.
For further information, please contact Jennifer Briscoe of QUALCOMM Wireless Business Solutions, +1-858-658-5715, jbriscoe@qualcomm.com, or Emily Gin, Corporate Public Relations, +1-858-651-4084, publicrelations@qualcomm.com, or Bill Davidson, Investor Relations, +1-858-658-4813, ir@qualcomm.com, all of QUALCOMM Incorporated.
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Source: QUALCOMM Incorporated
Mobile re-charge made easier
Ex-Chief of Motorola India has formed a JV with a South African firm to make pre-paid recharge for mobile service more accessible and virtual.
Monday, March 15, 2004
http://www.ciol.com/content/news/2004/104031503.asp
BANGALORE: One of the most favored services in the booming mobile sector in India is the pre-paid service. Reliance foray in to the pre-paid service for its CDMA service last month found four lakh new users in less than 30 days. However big the market is, according to a study, 30 per cent of India's prepaid customers leave outlets, disappointed as recharge cards of their choice of operator or the denomination they prefer is not available resulting in customer churn. The virtual prepaid airtime system aims to address this issue and help operators retain their customers.
Cashing in on this service is the newly launched India Pre-Paid Services, the country's first company to offer virtual prepaid airtime. The company has currently tied up with Bharti and Hutchinson to introduce its service of virtual airtime recharge.
India Pre-Paid Services is a 50:50 joint venture between The Pre-Paid Company, South Africa and Indian promoters ex-chief of Motorola India operations, Pramod Saxena and Sanjiv Lamba - a businessman with interests in the hospitality and office infrastructure sector. The Pre-Paid Company is South Africa's largest distributor of pre-paid airtime in both the physical and virtual arena.
Initially, the company will only offer virtual prepaid airtime services in Delhi and Mumbai, the country’s two largest markets for mobile prepaid cards. Trial operations with the operators in these cities for offering virtual services will begin later this month. In the trial phase, it will offer virtual prepaid airtime services through 200 retailers in Delhi and Mumbai which will go up to 2000 retailers by the year end.
Over the next 12-18 months, India Prepaid Services plans to tie up with all Indian operators and have a nationwide network for offering virtual prepaid services to the consumers across the country. The company is planning a network of third party retailers such as banks, big retailers, petrol companies and large shopping malls among others, to make pre-paid recharge accessible.
"Globally, the prepaid segment forms a significant portion of the subscriber base and revenues of operators. Today, the prepaid recharge market is heading to a virtual/electronic environment from the physical distribution state. As part of our next stage of growth, we are targeting exciting developing markets such as India," said Brett Levy, founder and executive Chairman of The Prepaid Company.
"India's prepaid market is set for phenomenal growth with the entry of CDMA operators as well. All operators are focusing on strengthening their prepaid propositions through flexible tariff options and a growing channel. The physical distribution process is getting increasingly complex which is why we believe that the virtual prepaid recharge airtime concept will benefit operators, retailers and end consumers in a market like India," said, Pramod Saxena, Co-Promoter, India Prepaid Services. "India Prepaid Services will create an application service platform that will connect the operators with the retailers across the country. At a later stage, this virtual service platform can be used by non telecom companies to deliver all kinds of payments services to the end consumers."
This new concept will allow consumers to recharge their prepaid airtime of any mobile operator and of any denomination from third party retailers. Retailers too will benefit hugely from this service as they will no longer be required to hold airtime stock in physical form of cards and will have a fully integrated virtual ordering and delivery system available 24 hours a day. For mobile operators, India Pre-Paid Services will help streamline their distribution system through a single network built on India Pre-Paid Services' proprietary software application. Operators will also be in a position to track sales of their prepaid connections through data on customer buying patterns.
"After having spent over five years with Motorola and several more in the telecom industry, it was important that I used this experience in being part of something as exciting as this new venture. I will play an advisory role at India Prepaid Services helping them establish their operations and market their services." added, Saxena.
CIOL Bureau
China telecom profits seen up, but growth slowing
Reuters, 03.15.04, 3:48 AM ET
http://www.forbes.com/technology/newswire/2004/03/15/rtr1298274.html
By Doug Young
HONG KONG, March 15 (Reuters) - China's three biggest listed telecoms firms are expected to report that earnings rose 12-24 percent in late 2003, but all three face declining growth as their markets mature and acquisition opportunities run out.
Both China Mobile (Hong Kong) Ltd <0941.HK> and China Telecom Corp <0728.HK>, the country's largest mobile and fixed carriers respectively, have said they will buy network assets form their state-owned parent firms, although neither has provided details.
At number-two cellular carrier China Unicom Ltd <0762.HK>, investors will focus on the performance of its CDMA (Code Division Multiple Access) network, which recently became profitable after a sluggish launch two years ago alongside Unicom's GSM (Global System for Mobile Communications) network. China Mobile also uses GSM. Each is under pressure to find new avenues for growth as the addition of new customers slows in the world's largest mobile market by subscribers. Having signed up the biggest spending, most profitable customers, all three now compete for lower-spending callers who form the bulk of China's population.
China's 277 million mobile subscribers gives it a penetration rate of about 20 percent. Some 60 percent of China's population are classified as rural and most cannot afford a mobile phone.
"There will be growth," said Nomura International analyst Kelvin Ho. "But you always have a trade-off between subscriber growth and profitability."
China Telecom will kick off the earnings season when it reports on Wednesday. Analysts expect the company's second half earnings to grow 12 percent to 9.47 billion yuan (US$1.1 billion), according to a survey by Reuters Research.
China Mobile will follow on Thursday, with fourth-quarter earnings expected to climb 25 percent to 9.52 billion yuan.
Both China Telecom and China Mobile are expected to discuss their acquisition plans when they announce results. China Mobile is expected to buy the remaining 10 provincial phone networks it does not already own from its state-owned parent, while China Telecom is expected to buy up to 11 networks from its parent.
Such acquisitions have been the norm for China's listed phone companies, which have gone public with their parents' most profitable networks first, then bought the less profitable ones over time, usually at a discount.
"For China Mobile, the biggest issue in 2004 will be the acquisition -- the price and whether it's value-enhancing," said UOB Kay Hian analyst Edward Fong.
"For China Telecom, it's again the acquisition...If you look at the company's balance sheet, it's pretty much stretched, so they may have to (issue new shares)."
Analysts are not expecting the acquisitions or the share issues to fund them to be announced with the results.
Concern over such a new issue -- which would dilute the earnings from current shares -- has weighed heavily on China Telecom's shares, which are down 22 percent from a record high of HK$3.50 in January this year. China Mobile shares are up 3.5 percent so far this year, in line with the Hong Kong market's 2.9 percent gain.
After the upcoming round of acquisitions, all three carriers will be close to exhausting this method as a means of future growth. As new growth prospects slow, the companies are starting to behave more like utilities that entice investors with steady income and regular dividends.
EYES ON CDMA
When Unicom reports results next week, investors will look for signs that its CDMA wireless network, with 20 million users at the end of January, can be significantly profitable this year.
Analysts expect Unicom's second-half profit to rise nearly 17 percent to 2.81 billion yuan, according to Reuters Research. Shares of Unicom are up 28 percent this year.
Investors will also be looking for the impact from "little smart". The heavily promoted low-end wireless service from China Telecom and China's other top fixed-line carrier, China Netcom, has been stealing market share from the two wireless carriers.
And the market will look for clues on China's plans to issue licences for third-generation (3G) mobile services.
Beijing is expected to license its top two fixed-line phone companies, China Telecom and China Netcom, to enter the wireless arena at the 3G level, providing new competition for incumbent carriers China Mobile and Unicom.
China Netcom is planning an initial public offering to raise up to $3 billion later this year.
But analysts do not believe new licenses will be issued until the end of this year at the earliest.
Copyright 2004, Reuters News Service
Nortel Networks Unveils CDMA 450 Portfolio, Deployment Strategy; Commercial Deployments Underway to Enable Next Generation Service on 450 MHz
http://home.businesswire.com/portal/site/google/index.jsp?ndmViewId=news_view&newsId=20040315005...
DALLAS--(BUSINESS WIRE)--March 15, 2004--Nortel Networks (NYSE:NT)(TSX:NT) has unveiled its line of CDMA products that it has developed and tested for the CDMA 450 MHz radio spectrum, and has begun commercial deployments in Europe.
Nortel Networks CDMA 450 product portfolio is designed to help customers reduce network capital expenditures and operating costs while maximize existing network investments. The CDMA 450 products, built on Nortel Networks Metro Cell base station solution, are designed to be the most flexible available in the industry today.
CDMA 450 is a standard for use in countries transitioning to digital wireless service from Nordic Mobile Telephone (NMT) 450 analogue service and in countries advocating universal access to voice and data. Because of the lower radio spectrum, CDMA 450 has the advantage of covering a significantly larger geographical footprint compared to traditional cellular systems. This means fewer cell sites, lower capital expenditures and no need for licensed operators to acquire additional spectrum.
"We have been testing and deploying CDMA 450 over the past year and, based on the successes of these networks, we have brought to market what we believe is the most robust, cost-efficient solution available to operators today," said Steve Searles, vice president, marketing, CDMA/TDMA, Nortel Networks. "CDMA 450 is gathering momentum and attention across Eastern Europe, Asia and Latin America because it is relatively inexpensive to deploy and is ideal for covering vast regions and less densely populated areas."
Leveraging its experience in deploying large CDMA-based networks globally and its existing product portfolio, Nortel Networks has designed its CDMA 450 products as dedicated, standalone radios. This provides operators with a cost-effective means of building on existing NMT450 infrastructure to expand and digitize voice and data services in both rural and urban environments.
Nortel Networks native radio solution reduces site power requirements by as much at 25 percent and eliminates the need for frequency shifter hardware, which can significantly decrease site deployments costs. Each radio can support three carriers, which can be easily activated individually via software. CDMA2000 1X and CDMA 1xEV-DO are also integrated in the same base station to enable operators to customize their mix of coverage and costs, and reduce site acquisition costs.
Nortel Networks also announced today a CDMA2000 450 MHz contract with Telekom Baltija in Latvia. In addition, Nortel Networks is conducting CDMA 450 trials with a number of operators across Eastern Europe, and has just completed a CDMA 450 trial with UralWestcom, a joint venture between Russian Telecommunications Development Corporation (RTDC) and Ural Svyaz Inform.
A leader in CDMA since 1995, Nortel Networks has designed and deployed CDMA networks over varying terrain and population densities for more than 65 operators across 17 countries. Nortel Networks CDMA technology supports multiple frequencies including 450, 800, 1900 and 2100 MHz, and is the only vendor capable of supporting multiple frequencies in one base station frame simultaneously. Nortel Networks is a leader in development, deployment and evolution of all major air interfaces including GSM, GPRS, EDGE, UMTS, TDMA, AMPS and WLAN.
Nortel Networks is an industry leader and innovator focused on transforming how the world communicates and exchanges information. The Company is supplying its service provider and enterprise customers with communications technology and infrastructure to enable value-added IP data, voice and multimedia services spanning Wireless Networks, Wireline Networks, Enterprise Networks, and Optical Networks. As a global company, Nortel Networks does business in more than 150 countries. More information about Nortel Networks can be found on the Web at www.nortelnetworks.com.
Certain information included in this press release is forward-looking and is subject to important risks and uncertainties. The results or events predicted in these statements may differ materially from actual results or events. Factors which could cause results or events to differ from current expectations include, among other things: the outcome of our independent review and any further restatement of our previously announced or filed financial results; the impact of the inability to meet our filing obligations on our credit and support facilities and public debt obligations; the sufficiency of our restructuring activities, including the potential for higher actual costs to be incurred in connection with restructuring actions compared to the estimated costs of such actions; continued reductions in spending by our customers; fluctuations in operating results and general industry, economic and market conditions and growth rates; the communication by our auditors of the existence of material weaknesses in internal control; the ability to recruit and retain qualified employees; fluctuations in cash flow, the level of outstanding debt and our current debt ratings; the ability to meet the financial covenant in our credit facilities; the use of cash collateral to support our normal course business activities; the dependence on our subsidiaries for funding; the impact of our defined benefit plans and our deferred tax assets on our results of operations, cash flows and compliance with our financial covenant; the dependence on new product development and our ability to predict market demand for particular products; the ability to integrate the operations and technologies of acquired businesses in an effective manner; the impact of rapid technological and market change; the impact of price and product competition; barriers to international growth and global economic conditions, particularly in emerging markets and including interest rate and currency exchange rate fluctuations; the impact of rationalization in the telecommunications industry; changes in regulation of the Internet; the impact of the credit risks of our customers and the impact of customer financing and commitments; stock market volatility generally and as a result of acceleration of the settlement date or early settlement of our purchase contracts; risks associated with a consolidation of our common shares; the impact of supply and outsourcing contracts that contain delivery and installation provisions, which, if not met, could result in the payment of substantial penalties or liquidated damages; the future success of our strategic alliances; and the adverse resolution of litigation, intellectual property disputes and similar matters. For additional information with respect to certain of these and other factors, see the most recent Form 10-Q/A and Form 10-K/A filed by Nortel Networks with the United States Securities and Exchange Commission. Unless otherwise required by applicable securities laws, Nortel Networks disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Nortel Networks, the Nortel Networks logo, the Globemark and Business Without Boundaries are trademarks of Nortel Networks
Qualcomm Phone Chip Shortfall Hits Koreans
http://www.reed-electronics.com/electronicnews/article/CA403370?spacedesc=news
By David Manners -- Electronics Weekly, 3/12/2004
Korean mobile handset makers are complaining about a lack of baseband chips from fabless semiconductor company Qualcomm, according to the Korea Times.
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According to the report, Qualcomm can supply only 70 percent to 80 percent of orders for its CDMA chips.
Samsung fell short of its mobile handset production targets in January and February because of the chip shortage. For smaller manufacturers, with less buying power, the situation is worse, says the report.
Last year Aldo Romano, head of the STMicroelectronics division that sells a CDMA baseband chip in conjunction with Texas Instruments, pointed out that, because Qualcomm does not have its own manufacturing facilities, it could fall into supply problems when the foundries are full, as they are now.
Both ST and TI have their own manufacturing facilities
Hopland cell tower upgrade approved
By PEIJEAN TSAI/The Daily Journal
http://www.ukiahdailyjournal.com/Stories/0,1413,91~3089~2013635,00.html
Emergency calls to 9-1-1 operators will soon be improved for U.S. Cellular customers.
On Thursday, the county's planning department quickly approved a permit request to add special technology antennas to an existing U.S. Cellular tower three miles southwest of Hopland, moving forward a series of projects the wireless communication company is undertaking to meet new Federal Communications Commission 9-1-1 mandates.
The additions will mount nine 8-foot-tall-by-1-foot-wide antennas to the top of the 150-foot tower located on a county road approximately 1 mile south of Duncan Peak. Tower height would increase by about 3 feet, as the new antennas would be mounted parallel to the existing three panel antennas.
The new antennas utilize the digital technology CDMA, or Code Division Multiple Access, which will help 9-1-1 operators better pinpoint callers, said Heinz Lumpp, a Rancho Cucamonga consultant representing U.S. Cellular for the expansion project.
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"It means if (U.S. Cellular customers) dial 9-1-1, the operators on emergency service can locate them better," Lumpp said.
New FCC requirements mandate that cellular providers install the technology in existing towers by next year.
Lumpp said the existing tower facilities in the county do not meet the new mandates. The tower near Hopland is one of 14 in Mendocino County operated by U.S. Cellular which will undergo the addition of new antennas. In the past few weeks, U.S. Cellular received county approval to update four towers. Each tower will receive similar treatment: nine new CDMA antennas.
Construction had not begun on any of the 14 towers in county limits as of Thursday afternoon.
The county planning department did not receive any letters or correspondence objecting to the new antennas, said Chief Planner Frank Lynch.
No earthmoving or grading was proposed for the project near Hopland, and electrical service exists on the site, a 400-acre agricultural preserve where Verizon Wireless and Edge Wireless also operate. According to a staff report, the new antennas would not have a significant impact on wildlife or produce noise other than during their construction.
At the March 4 county Planning Commission meeting, planners unanimously approved the same modifications to a 60-foot U.S. Cellular tower approximately two miles south of Boonville.
At the same meeting, county planners reviewed a request by Verizon Wireless to build a 125-foot tall wireless communication tower on a 40-acre parcel about 10 miles north of Willits in the Longvale area. That proposal was tabled to a May 6 meeting.
Industry leaders push for a mobile-specific Net domain, one carrier fudges subscriber numbers while another doesn't need to, CDMA 1x gets another speed boost, and more.
http://www.thefeature.com/article?articleid=100455&ref=563821
Nine top mobile companies said this week they'd apply for a mobile-specific top-level domain, so that mobile Net URLS could end in .mobile or something similar. While the new domain could make it easier for users to locate mobilized versions of sites, it could drive the mobile and wired Webs further apart, rather than integrating them more closely, and still won't solve the problem of the number of different formats used to code mobile content.
The 3GPP this week approved the latest revision of the CDMA2000 1x EV-DV standard, widening the speed chasm between it and WCDMA. The new revision has a theoretical downstream speed of 3.1 Mbps and upstream at 1.8 Mbps, and also features simultaneous voice and data transmission. The CDMA Development Group says EV-DV will be commercially available next year.
While EV-DV is in its infancy, one EV-DO carrier is already going out of business. US carrier Monet, a data-only operator that was the first in the US to launch and EV-DO network, said this week it was shutting down next month after being unable to attract enough subscribers. Monet's failure asks some interesting questions about US mobile data, but seems to be more a condemnation of standalone mobile data rather than in tandem with voice service.
The were some red faces at NTT DoCoMo this week when it emerged that employees at its Kyushu unit had in February signed up for 800 accounts to avoid being the first subsidiary to have a net loss of monthly subscribers. The employees got caught when they cancelled the accounts shortly after the beginning of the month, raising red flags in DoCoMo's computer system.
One carrier not needing to fudge its numbers is T-Mobile, which said this week that it saw growth in 2003 in all its markets. Its US unit lead the way, increasing subscribers by a third and service revenues by a half and tripling EBITDA. T-Mobile parent Deutsche Telekom also said it had no plans for a T-Mobile IPO, and that it saw no need for T-Mobile to consolidate with another US carrier.
Sony Ericsson announced several new handsets this week, playing up the devices' camera functions and hoping to use Sony's reputation in digital cameras to help sell handsets. It's an interesting idea and one that may become more prevalent as the quality of cameras in mobile devices grows. It may also show digital camera manufacturers a way to gain back some of the ground they'll lose to the devices by working with phone vendors to integrate their cameras and co-brand the devices.
There are a few applications on the horizon that promise to make blogging simpler, and an automatic extension of our mobile life, with details of Nokia's Lifeblog project emerging this week. Lifeblog is a Windows app that takes SMS, MMS, photos and notes from forthcoming Series 60 devices and creates a timeline-based diary. While Lifeblog itself doesn't have an online component, its output can be easily funneled to the Web.
Elsewhere on the site this week, Eric Lin says music is coming back to wireless -- wireless data, Howard Rheingold wonders who's doing what and where, Douglas Rushkoff speaks of his struggles to set up a mobile-development course, and Peggy Salz fills us in on some mobile usability enhancements