Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Qualcomm's Outlook Boosted By 3G Adoption
David Ng, 09.08.05, 5:23 PM ET
http://www.forbes.com/markets/2005/09/08/qualcomm-wireless-earnings-0908markets16.html?partner=yahoo....
Credit Suisse First Boston reiterated an "outperform" rating on Qualcomm (nasdaq: QCOM - news - people ) and raised the target price to $50 from $45.
The research firm said Qualcomm's current valuation is "compelling," particularly relative to the stock's historical trading range.
"We therefore view this as an attractive entry point and would expect to see more evidence of a late 2005 3G ramp in Europe over the next few months," the research firm said.
CSFB raised the fiscal 2006 and 2007 earnings-per-share estimates on Qualcomm to $1.45 and $1.68, respectively, from $1.43 and $1.65. The research firm cited improving confidence in accelerating 3G adoption by 2006.
Qualcomm should receive comparable WCDMA royalty rates versus CDMA2000 royalty rates, according to CSFB. However, the research firm said there is some uncertainty around this related to the renegotiation of Qualcomm's licensing agreement with Nokia (nyse: NOK - news - people ).
Report: Mobile TV Unlocks Wireless Data Revenue Stream
Thursday September 8, 1:45 pm ET
The success of early mobile TV services opens the door for the integration of cellular with mobile broadcast networks, says Unstrung Insider
http://biz.yahoo.com/prnews/050908/nyth189.html?.v=13
NEW YORK, Sept. 8 /PRNewswire/ -- Mobile TV is set to become a breakthrough mass-market mobile data service, judging by feedback from pioneering services offered by major global operators such as Orange, Vodafone, and SK Telecom, finds a new report from the subscription research service Unstrung Insider (http://www.unstrung.com/insider).
The report, entitled Mobile TV: Switching on the Revenue Stream, identifies the introduction of mobile TV over 3G and satellite broadcast networks as a burgeoning success story, with monthly usage already at more than 1 million sessions per month at some operators.
"There's a lot of mileage in unicast mobile TV as a lure to attract high- value 3G subscriptions," says report author and Unstrung Insider Chief Analyst Gabriel Brown. "The power is its simplicity: Everyone already knows how to watch TV."
The report also covers the upcoming introduction of dedicated mobile broadcast networks based on DVB-H (Digital Video Broadcast-Handheld), DMB (Digital Multimedia Broadcast), and MediaFLO technologies, which make more efficient use of radio resources for mass-market, one-to-many media services.
Among the report's key findings:
* Sub-$10/month services will be essential to drive uptake of mobile TV,
but from there operators can increase data revenues from the technology-
indifferent user base.
* Multicast over 3G has many theoretical attractions for "clip-cast"
services, but it will take several years to gain significant momentum.
Look for enhanced multicast mechanisms in upcoming 3GPP and 3GPP2
specifications.
* Most operators currently take a technology-neutral stance with respect
to mobile broadcast technology -- even those that have tested DVB-H say
they are not yet committed to that roadmap.
* DVB-H has the momentum as today's leading contender for dedicated mobile
broadcast networks -- especially in Europe. But issues surrounding
spectrum allocation in many developed regions looks set to slow down the
commercialization of services.
* If Qualcomm's MediaFLO technology delivers what it claims, on the
timeline it claims, it could upset DVB-H as the automatic mobile
broadcast technology choice. Delays to mobile broadcast spectrum
allocation work to Qualcomm's advantage.
Mobile TV: Switching on the Revenue Stream, a 23-page report in PDF format, is available as part of an annual subscription (12 monthly issues) to Unstrung Insider, priced at $1,350. Individual reports are available for $900. To subscribe, please visit: http://www.unstrung.com/insider.
For additional information, to request a free executive summary of the report, or for details of multi-user licensing options, please contact:
Jeff Claudino
Sales Manager
Insider Research Services
619-229-9940
claudino@lightreading.com
For press inquiries, members of the media may contact Gabriel Brown at brown@unstrung.com.
stricklybiz, yes, his program is on CNBC. I do not have cable TV at home, I reposted the information from the Yahoo food fight Board only.
Nokia supplies WCDMA 3G network including HSDPA to Eurotel in the Czech Republic
Source : La Société
Actualité du 08/09/05 à 17:20
http://www.edubourse.com/finance/actualites.php?idActus=23175
Espoo, Finland - Nokia and Czech mobile operator Eurotel Praha, have signed an agreement for the supply of WCDMA 3G network including the Nokia High Speed Downlink Packet Access (HSDPA) solution, continuing Nokia's long-term role in the development of Eurotel's mobile network. The deal is Nokia's first 3G contract in the Czech Republic.
Under the agreement, Nokia delivers core and radio networks including the HSDPA solution and the Nokia IP Multimedia Subsystem (IMS). Nokia also provides the Nokia NetAct(TM) network management solution, and services for network planning and implementation, operation and maintenance, and training.
The Nokia HSDPA solution is a software upgrade to the 3G network with which data speeds will go up to 1-2 Mbps in the first phase.
"We see 3G as a crucial step in ensuring our market leadership, and fulfilling the demand of our customers", says Tomás David, Chief Strategy Officer of Eurotel Praha. "We are confident that Nokia's expertise in 3G WCDMA deployment and its ability to respond to our needs will ensure we are able to offer our customers the most advanced 3G services."
"Nokia is proud to collaborate with Eurotel on its initiative to make 3G services a reality in the Czech Republic," says Matti Palomäki, Country Director, Networks, Nokia. "Our high quality product portfolio makes a strong business case for Eurotel to provide competitive 3G services to its customers."
About Eurotel Praha, spol. s r.o.
Eurotel Praha, spol. s r. o., reported more than 4.4 million customers in its network at the end of June 2005. The mobile telephone networks of Eurotel 900/1800 MHz and 450 MHz cover a territory which has 99 percent of the population of the Czech Republic (more than 10 million people). Eurotel holds a UMTS license for the operation of 3rd generation mobile services.
As well as services for post-paid customers on billed tariffs, Eurotel offers prepaid cards under the brand name Go and a full range and content of multi-media services, including video, MMS, voice services, WAP and SMS. Eurotel is the only mobile operator in the Czech Republic which offers the two most advanced GSM (wireless) data transfer technologies. The high quality of Eurotel services includes SuperSound technology, which ensures a clean voice connection and 397 roaming partners in 160 countries around the world.
Eurotel Praha is a limited liability company (spol. s r. o.), and is owned (100%) by CESKÝ TELECOM, a. s.
About Nokia
Nokia is a world leader in mobile communications, driving the growth and sustainability of the broader mobility industry. Nokia connects people to each other and the information that matters to them with easy-to-use and innovative products like mobile phones, devices and solutions for imaging, games, media and businesses. Nokia provides equipment, solutions and services for network operators and corporations.
Media Enquiries:
Nokia, Networks
Communications
Tel. +358 7180 34379
Nokia
Communications
Tel. +358 7180 34900
E-mail: press.office@nokia.com
www.nokia.com
QCOM - New Position For Cramer
Courtesy of BONAN99 from Yahoo QCOM Board:
http://finance.messages.yahoo.com/bbs?.mm=FN&action=m&board=4686818&tid=qcom&sid=468...
by: BONAN99 09/08/05 10:14 am
Msg: 573340 of 573340
He will pump it up big tonight on his show:
Thursday, September 08, 2005 10:00 a.m. EDT
Dear ActionAlertsPLUS Subscriber,
I'm free to trade Qualcomm (QCOM:Nasdaq) this morning, and
am going to initiate a position after you read this alert.
I'm going to buy 1,500 shares; the stock is trading at
$40.90 as I write. I'll give you readers a more detailed
update later, but this company is no stranger to most
investors.
Qualcomm has barely budged this morning, despite receiving
multiple positive analyst comments overnight. This
purchase is in line with my thesis that the tech rally
will be based on who makes the hot products. Nothing is
hotter than mobile phone handsets these days, and the
company's 3G technology continues to be in high demand.
With that in mind, I believe Qualcomm shares can trade up
toward $50 in the coming quarters.
BREAKOUT CONFIRMED breakout above 40.81, no resistance in area just above.
Type: True breakout from double resistance.
Target: 43.14, 4.8% Stop: 40.37, Loss: 1.9%, Profit/Loss ratio: 2.5 : 1 - Good
http://quotes.nasdaq.com/quote.dll?&mode=stock&symbol=qcom&symbol=&symbol=&symbo...
then click on stock consultant.
3G to boost exports of telecom equipment
Telecom Paper (subscription), Netherlands - 26 minutes ago
http://www.telecom.paper.nl/newsalert/newslogin.asp?origin=http://www.telecom.paper.nl//site/news_ta....
... According to the executive of Qualcomm in Brazil Valerijonas Seivalos Junior in 2008 Brazil will have 1 million customers for the technology WCDMA.
Trends: Wireless Broadband Will Redefine The Network
September 08, 2005
http://www.mobilepipeline.com/showArticle.jhtml?articleId=170701383
By Peter Rysavy Courtesy of Network Computing
Things used to be simple with wide-area wireless networks. The network endpoints were mobile telephones or modems. The modems were inside PDAs or laptops. The endpoints were basically you and me--people. But that's changing, with companies like Netgear, which last week announced a wireless broadband router for Flash OFDM. Netgear's router has a wide-area connection using Flarion's (now owned by Qualcomm) Flash OFDM technology and local connections using Wi-Fi and Ethernet. Okay, so there are no Flash OFDM networks in the United States. But Cingular and Sprint have offers in this area, and Verizon is not far behind. The endpoint is no longer a person; it's a network. And just as we were going to press, we saw D-Link's August 30 announcement of its Wireless 3G Mobile Router.
The general idea is to terminate the wireless WAN connection at a device that routes to a network. I got a nice taste of this recently at an industry association meeting where an enterprising network engineer had a UMTS card in his laptop and distributed his Internet connection over Wi-Fi to willing recipients in the meeting. About a dozen of us enjoyed this ad hoc service, and it worked just fine. In this case, Microsoft Windows in the laptop was doing the routing, with each of us using a separate IP address provisioned from the laptop.
So should we all start using our UMTS (and forthcoming HSDPA) or EV-DO connections as an alternative to T1s or DSL connections and share that connection with multiple endpoints? However tempting that may sound for some scenarios, it's not the best application of the router technology. Wireless broadband speeds are on average lower than wired connections, latency is higher and, most importantly, monthly costs are higher. Furthermore, the unlimited usage service plans are likely to prohibit this type of usage. The application that does make a lot of sense, however, is backup connectivity, particularly for mission-critical situations. Rather than having a redundant wireline connection, you can use the wide-area wireless connection for backup. For applications such as metering and retail point-of-sale that don't transmit much data, the wireless connection might even be the primary application.
Cingular supports this type of connectivity with its Wireless WAN Connectivity service, which is accompanied by a router from Digi called Digi Connect WAN GSM. This router is a compact device that supports GPRS and EDGE. Sprint's offer in this area is its PCS Data Link service, which originally supports 1XRTT, and will be an obvious candidate for Sprint's forthcoming EV-DO service. Verizon does not yet have a formal plan. A number of routers support EV-DO; for example, the Kyocera KR1 router with Wi-Fi and the TopGlobal routers. Junxion makes a router that allows you to insert PC Card format modem cards and supposedly support EDGE, 1xRTT and EV-DO. The D-Link router also accepts modem cards for all the major 3G networks. Omniwav has an EV-DO router designed to be installed in vehicles. Every major router vendor is likely to follow suit. This market area is in its early days, but clearly coming alive.
If you're thinking about how to take advantage of wireless WAN network-to-network connectivity, here are some considerations. First and foremost, make sure the service plans allow this kind of usage. Then make sure the wireless WAN connection has the horsepower for your application. Realize that wireless speeds vary according to signal quality and network loading, so test the application in both best-case and worst-case scenarios. Then investigate pricing. Even though operators have unlimited usage plans, these are designed for end users and are not intended for transmitting large numbers of gigabytes of data every month.
As impressive as the capabilities are of new wireless networking technologies, I have previously commented on their relatively low capacity, meaning it doesn't take very many endpoints communicating continuously to swamp the capacity of the local cell site. Operators are very sensitive to this, and it is reflected in their pricing plans. For instance, Cingular offers usage based plans from 5 MB for $19.99 per month to 50 MB for $49.99 per month and also allows multiple devices to be pooled together to determine total monthly usage, which can be useful as it can be hard to predict the amount of traffic at any one node. Sprint's pricing is at a similar level, with 40 MB costing $40 per month. You'll also need to estimate how much traffic may go over your backup connection so you don't get nailed with overage charges.
You'll still have to do your network planning, such as designing routing approaches. The Digi product, for example, supports GRE encapsulation, which allows the remote network to have IP addresses assigned via the home network.
With the higher networking speeds of technologies such as EV-DO, HSDPA, Flash OFDM and WiMAX, the wireless broadband router market makes a lot of sense, and it is likely to become one more tool in your networking toolkit.
Peter Rysavy is the president of Rysavy Research, a consulting firm that specializes in wireless technology assessment and integration.
Intel, Texas Instruments May Say Quarterly Sales Are Surging
http://www.bloomberg.com/apps/news?pid=10000103&sid=a8GH5g70jv8A
Sept. 8 (Bloomberg) -- Intel Corp. and Texas Instruments Inc., the two biggest U.S. semiconductor makers, may say today that third-quarter sales are surging on laptop and mobile phone purchases during the back-to-school season.
Santa Clara, California-based Intel's sales will likely rise 17 percent to a record $9.92 billion, meeting the company's previous forecast, according to the average estimate of 35 analysts surveyed by Thomson Financial. Texas Instruments' sales may increase 6.1 percent to $3.45 billion, the highest in 10 years, according to the average of 33 estimates.
The mid-quarter forecasts, to be released after the close of trading today, may spark optimism about demand for consumer electronics going into the holiday season and damp concerns about the effect of rising gas prices on consumer budgets. The fastest- growing chip markets are overseas, limiting any pause in spending in the U.S. after Hurricane Katrina prompted a surge in oil prices last week.
``Demand is very strong and it will be a great back-to-school season, especially for Intel,'' said Matt Kelmon, who helps manage $750 million at Palo Alto, California-based Kelmoore Investment Co., which owns shares of both chipmakers. ``Semiconductors are really clicking on all cylinders.''
Intel, the world's biggest computer-chip maker, said July 19 that sales would be $9.6 billion to $10.2 billion this quarter on demand for laptops with wireless Internet connections. Dallas- based Texas Instruments, the top seller of chips that run mobile phones, predicted revenue of $3.29 billion to $3.56 billion as handset makers add functions to play videos.
Shares of Intel, which have gained 9.7 percent this year, fell 4 cents to $25.66 yesterday in Nasdaq Stock Market composite trading. Texas Instruments, up 35 percent this year, rose 13 cents to $33.30 on the New York Stock Exchange.
The Optimism Game
Intel received a boost from notebook orders. Laptop shipments of notebooks out of Taiwan, which accounts for more than three- quarters of worldwide production, have exceeded early predictions.
``We expect Intel to say that emerging-market PCs are strong,'' said Cody Acree, an analyst at Legg Mason Wood Walker in Dallas. He has ``buy'' ratings on both of the stocks, which he said he doesn't own. ``It's not the U.S. corporate side that is doing it.''
Shipments may rise 37 percent this quarter from a year earlier to 12 million units, Jefferies & Co. analyst John Lau in New York said. He initially expected 11.7 million.
Concerns about inventory piling up this time last year have abated, and Intel now can't build enough of some chipsets to satisfy demand, analysts said.
Name of the Game
``This year seems better, and optimism seems to be the name of the game,'' said Daniel Morgan, who helps manage $5.45 billion at Synovus Investment Advisors in St. Petersburg, Florida.
About 31 of the 48 analysts who follow Intel suggest buying the shares, 15 recommend holding them and 2 have ``sell'' ratings. Of the 42 analysts covering Texas Instruments, 21 suggest buying the stock.
Both companies have exceeded analysts' profit estimates in the past three quarters.
The concern may be how profitable orders are going forward as more revenue comes from cheaper systems sold overseas, analysts including Needham & Co.'s Charles Glavin in San Francisco said.
Intel Chief Executive Officer Paul Otellini and his predecessor, Craig Barrett, expanded the company's reach overseas. The company won 51 percent of its sales from Asia last quarter, the first time more than half of revenue came from the region. The U.S. accounted for 22 percent of sales, down 24 percent a year earlier.
The company in July forecast a gross margin, the percentage of sales left after production costs, of about 60 percent this quarter -- less than some analysts expected. The margin reflects the trend toward winning more sales of less-expensive chips overseas and a pickup in orders of cheaper processors used in the Xbox video-game machine, analysts said.
Seeping In
``This has been something that eventually had to seep in,'' Needham's Glavin said. He rates shares of both Intel and Texas Instruments ``buy'' and said he doesn't own them. ``It's a structural change.''
Texas Instruments also expanded into new markets.
Nokia Oyj, the world's biggest handset maker and Texas Instruments' biggest customer, said in July that its operating margin narrowed even as sales surged. Competition drove its prices down as the company sought customers in new regions.
Pushing its chips into new, more expensive handsets that surf the Internet and play music may help Texas Instruments counter the effects of the lower-priced products on profit, Glavin said.
``TI we think will be fairly bullish,'' said Hans Mosesmann, an analyst at Moors & Cabot Inc. in New York. He is recommending investors buy both stocks. ``We look to hear positive data points from them, particularly in handsets.''
Increased Competition
Both companies also face heightened competition in key areas. Intel lowered prices to compete in chips for server computers that run networks, a market Otellini described as ``tough'' on the last earnings conference call in July.
Intel's market share in servers fell to less than 90 percent for the first time in the second quarter as Advanced Micro Devices Inc. took customers with a new design.
Texas Instruments CEO Rich Templeton is squaring off against Qualcomm Inc., which is targeting the Nokia account as one of its top priorities to bolster sales of new chips for the latest handsets.
Intel said in July that an unidentified large customer will announced this month that it is using Intel's baseband chip, the main chip in a cell phone. Intel so far has failed to secure a top six handset maker as customer for those processors.
To contact the reporter on this story:
Ian King in San Francisco at ianking@bloomberg.net;
Jason Kelly in Atlanta at jkelly14@bloomberg.net.
Last Updated: September 8, 2005 01:03 EDT
GSM slump will boost CDMA : Qualcomm
Sanjiv Shankaran / Chennai September 07, 2005
http://www.business-standard.com/common/storypage.php?storyflag=y&leftnm=lmnu1&leftindx=1&am....
The fall in revenue from Global System for Mobile Communication (GSM) users will soon push the entire mobile phone market towards Code Division Multiple Access (CDMA) technology, said Kanwalinder Singh, president, Qualcomm, India and Saarc. Qualcomm is a pioneer in CDMA technology.
Singh said GSM companies in India would mimic those in Europe and evolve towards WCDMA (wide-band CDMA), at a workshop in Chennai. In a year or so, the debate about the respective merits of CDMA and GSM will become irrelevant, he forecast.
The trigger in India will be the falling trend in average revenue per user (ARPU), he said. The telecom industry’s ARPU in March 2005 was Rs 407, as compared to an ARPU of Rs 634 two years ago.
The only way to reverse the trend is to provide more value added services, which would mean a shift to CDMA technology because it offers both data and voice services on the same spectrum.
Singh said that in Europe, a big GSM market like India, companies such as Vodafone and France Telecom had already begun to make the transition to WCDMA.
WDCMA equipment is placed on top of GSM to make the transition.
Singh said the GSM companies’ cost of making the transition was not trivial, but remained manageable.
Though European telecom companies are evolving towards WCDMA, a similar evolution in India depends on the government’s decisions on spectrum policy. “Without spectrum decision nobody is going anywhere,” said Singh.
Qualcomm is in talks with the government on the issue and pushing for a quick decision, he added. The problem is that in metros some GSM service providers have 10 Mhz of spectrum as against about 5 Mhz of spectrum that CDMA players have.
Singh said Qualcomm was pushing for equal spectrum allocation among different technologies. If that were to happen quickly, it would catalyse the next phase of growth in mobile telecommunications, he added.
JeffreyHF: Thank you for pointing out the fact that Qualcomm will get royalties on all 3G devices equipped with TI chips and Intel chip.
TI, Qualcomm spar over 3G phones
09:08 AM CDT on Tuesday, September 6, 2005
Bloomberg News
http://www.dallasnews.com/sharedcontent/dws/bus/stories/090605dnbusti.2ee9edc0.html
Texas Instruments Inc.'s Christophe Jouin won't take his staff for a working lunch to the House of Kabobs or the Tiki Hut Grill or any restaurant in the Sorrento food court a five-minute walk from their suburban San Diego office. His enemies could be sitting at the next table.
Jouin, 39, is the ranking manager at the 200-person West Coast outpost of Dallas-based Texas Instruments, whose semiconductors run more than half of the world's mobile phones. His closest rival, Qualcomm Inc., has headquarters around the corner on Morehouse Drive.
“We have to be careful what we say over lunch,” says Jouin, after dining at Harry's Bar and American Grill, a 10- minute drive from his office and a safer place to discuss the competition.
The battle between the two biggest makers of semiconductors for mobile telephones is intensifying as phone sellers and service providers roll out the next generation of handsets -- and try to persuade consumers to cough up more than $200 for them.
In the works for almost a decade, the so-called 3G phones use double or triple the number of chips found in current models, providing a potential bonanza for semiconductor companies. Getting the phones right -- from the half-inch width to a battery that won't die after 15 minutes -- may translate to a $40 billion market by 2009, Boston-based research firm Yankee Group Research predicts.
Investors' Bets
Investors are betting Texas Instruments can parlay its lead in so-called 2G and 2.5G models to dominate the new market. The company gets more than $1 billion in annual chip sales -- about one-tenth of its revenue -- from Espoo, Finland-based Nokia Oyj, the world's biggest handset maker.
Texas Instruments' shares have surged 32 percent this year to $32.50 on Sept. 2. Qualcomm's stock fell 5.7 percent during the same period after outpacing Texas Instruments in 2004.
Qualcomm twice slashed its forecast this year for worldwide shipments of the main type of 3G phones, which are known as Wideband Code-Division Multiple Access models. Qualcomm Chief Executive Officer Paul Jacobs now predicts manufacturers will ship 45 million WCDMA phones globally this year, down from a January forecast of 55 million.
Jacobs has said he wants to control half of the WCDMA market. Yet he hasn't managed to wrap up deals for 3G chips with either Nokia or Schaumburg, Illinois-based Motorola Inc., the world's No. 2 cell-phone maker, says Cody Acree, a Dallas-based analyst at Legg Mason Wood Walker Inc.
'Hard-Pressed'
“I'm hard-pressed to see how he gets there without getting one of them,” says Acree, who rates Texas Instruments shares “buy” and Qualcomm “hold” and says he owns neither stock.
Both Texas Instruments and Qualcomm may stall as they wait for customers to determine the magic combination of bells and whistles that will entice them to trade up to 3G models.
Earlier this year, Nokia installed a program on some phones to track what customers did with them. The callers used an average of 15 separate applications each week, such as watching videos and working on documents. They downloaded five new programs a month.
Pertti Korhonen, Nokia's chief technology officer, says no one feature emerged as a clear favorite. “There has to be the right device for the preference of the individual,” Korhonen says. “And those preferences are different.”
A killer application -- if it does arise -- may surprise even seasoned observers. Motorola and other handset makers failed to predict the popularity of built-in cameras in 2003. And users unexpectedly embraced ring tones to personalize their phones, downloading $217 million worth last year in the U.S., according to New York-based research firm Jupiter Research.
Bubble Burst
U.S. carriers are wary of rushing headlong into 3G after their European counterparts got burned by paying about $100 billion for fast-data licenses.
Instead of ushering in a new telephone age -- where mobile phone users could watch movies or challenge each other in video games -- the spending by Newbury, England-based Vodafone Group Plc, Bonn-based Deutsche Telekom AG and Milan-based Telecom Italia Mobile SpA peaked as the Internet bubble burst in 2000. Vodafone and others delayed services such as video calls that would have run on the new networks, sending shares plunging.
'Chip on Their Shoulders'
“The service providers still have a chip on their shoulders because they don't think they've been fully compensated for the buildouts they did in the 1990s,” says Daniel Morgan, who helps manage $5.45 billion, including shares of Qualcomm and Nokia, at St. Petersburg, Florida-based Synovus Investment Advisors.
This time around, companies are betting the question is when -- not if -- 3G will take off. Customers have gotten used to camera phones and on-screen games, and doing anything more requires faster speeds.
For carriers, networks updated for 3G have the added advantage of handling 25 percent to 30 percent more voice traffic and reducing dropped calls, says Kris Rinne, chief technology officer of Cingular Wireless LLC, the biggest U.S. mobile-phone carrier.
“By going to 3G, I increase my capacity and I reduce my costs,” Rinne says, noting that users who aren't sold on the gee-whiz aspects of 3G will see an improvement in the quality of a simple phone call.
Intel as Spoiler?
Intel Corp., the world's biggest semiconductor company, may emerge as the spoiler in the 3G chip wars. The Santa Clara, California-based company is jumping into cell phone chips as its main market -- personal computer semiconductors -- slows. Intel's sales growth will fall to 8 percent next year from 15 percent in 2005, according to Thomson Financial.
To counter the drop-off, Intel CEO Paul Otellini, 54, is pushing a new 3G processor called Hermon, which puts the communications capabilities and the software that runs a cell phone's video, sound or games on a single chip.
For Texas Instruments, Qualcomm and the other 3G hopefuls to win in the projected $40 billion new market, they'll have to produce phones that do a lot of cool things, even if no one's quite sure which of those things will lure consumers.
And they'll have to persuade investors, who have been burned before, that this time around 3G is coming -- even though it's not the prevailing standard yet. With hurdles like those to conquer, it's a wonder anybody at Texas Instruments or Qualcomm has time for lunch at all.
CDMA cell phone to navigate auto driving
UPDATED: 16:54, September 06, 2005
http://english.people.com.cn/200509/06/eng20050906_206913.html
A new model of CDMA cell phone with a positioning system will embed its speech sound telecommunications and map navigation services into the navigation business of automobiles. The new telecommunications business will be on offer nationwide by the end of this month at the soonest, which was announced by China United Telecommunications Corporation (China Unicom) and Qualcomm on Sept. 5 in Beijing, according to the Beijing Times published on September 6.
China Unicom has started trial operation of the business, which is expected to be available for commercial use before the coming National Day (October 1), disclosed Zhai Yibing, deputy general manager of China Unicom's Value-added Service Department.
According to its initial planning, the phone charges will be composed of two parts: one part will be paid monthly, which will be fixed at 18 yuan per month; another part will be for Internet charges. Take Beijing for example, packaged Internet Internet use costs 35 yuan a month now.
However, the price for mobiles backing up auto navigation is still comparatively high. Zhai introduced that China Unicom has already reached an agreement with Samsung to purchase its Model W219 phone as China Unicom's first batch phones to be sold on China's domestic market and the price is fixed at about 4,000 yuan.
In addition, China Unicom has started cooperation with many Sino-foreign cell phone firms and enterprises, including LG and TCL in order to accelerate the testing of auto navigation phones. It is scheduled that new medium- and low-end navigation phone models will arrive at the market in one or two months.
In Japan and the United States, the mobile phone navigation business has begun to have an impact on traditional satellite navigators. According to the statistics released by global authoritative organizations, the number of vehicles equipped with navigators in China is expected to reach 100,000 sets valued 7.5 to 15 billion yuan. Cell phone navigation will hopefully become a new and major growth point for the data business of telecom operators.
By People's Daily Online
Mobile TV: Qualcomm's banking on content
And video and audio 'clipcasts'...
By Reuters
Published: Monday 5 September 2005
http://networks.silicon.com/mobile/0,39024665,39151921,00.htm
Efforts are afoot to broadcast TV programming to a new generation of mobile phones that can tune in, just like an at-home TV.
Despite the billions of dollars US wireless operators have spent upgrading their networks to offer such multimedia content as videos and music, they are insufficient for the job.
The problem is that they are designed for two-way, on-demand access. To broadcast programming on such networks would require that each show be sent to each subscriber separately - an impossibly time-consuming and expensive proposition.
Andrew Cole, an analyst with AT Kearney, said: "It's very difficult to offer high-definition TV on a handset through existing networks. You have to offload that through a separate network."
Several initiatives are under way to achieve just that: a separate wireless network built specifically for one-way multimedia broadcasting.
Leading the charge in the United States is wireless kingpin Qualcomm, which has invested $800m to date in its vision for mobile broadcast TV.
Called MediaFLO, this effort requires Qualcomm to act much like a cable company, such as Comcast. It must build its own content-delivery system, consisting of an entirely new network of wireless transmitters, on airwaves paid for by the company. Additionally, it requires a new receiver - also built by Qualcomm - which manufacturers will have to incorporate into future phone models if they want their customers to be able to receive such broadcasts. Finally, the company is negotiating airing rights to programmes from major media outlets.
Once MediaFLO is operational, Qualcomm hopes to sell the service on a wholesale basis to wireless operators, who would provide it to their subscribers as a complement to their own mobile video services.
The result is a service that offers 15 to 20 channels of real-time broadcast TV displayed on a mobile phone at 30 frames per second in HD resolution, on par with standard TV. That is twice the frame rate of Verizon's current VCast high-speed video service, with three times the picture quality.
In addition to the broadcast programming, the MediaFLO system supports a feature called "clipcasting". Users can select content they would like pushed automatically to their phone and replaced when new instalments are created, much like a podcast. Content can be refreshed hourly, daily or weekly, and can consist of video and audio programming.
Qualcomm is positioning MediaFLO as a service for all carriers; wireless subscribers, regardless of their carrier, will have access to the same MediaFLO programming.
Carriers could then offer exclusive, on-demand, premium programming of their own to set themselves apart. In addition, carriers could incorporate the MediaFLO stream with such applications as a music or ringtone store. So a user listening to or watching a music channel via MediaFLO can use the carrier network to buy the ringtone or full-song download of any given track.
Jeff Lorbeck, VP and general manager of Qualcomm's MediaFLO division, said: "It's like gluing your TV and internet together."
As usual, the testing ground for such a dedicated multimedia system is in Asia. Korean operator SK Telekom currently offers a wireless multimedia service using a satellite-based adjunct delivery system called Digital Media Broadcasting (DMB). Since its April launch, the DMB service has attracted more than 100,000 subscribers with seven channels of video and 20 of audio. A similar system has been operational in Japan for years.
Also making a play is another wireless giant - Nokia. Its Digital Video Broadcast-Handheld technology is being tested across Europe by several wireless carriers and in the United States by partner Crown Castle Mobile Media.
But like any new technology initiative, the success depends on programming. With this in mind, Qualcomm is aggressively lobbying such well-known brands as ESPN, CNN, Comedy Central and MTV to include their content in the MediaFLO service.
Qualcomm does not expect commercial implementations until next autumn but it already has the support of several content providers.
Big bucks back next mobile frontier Broadcast TV
(Reuters/Billboard)
3 September 2005
http://www.khaleejtimes.com/DisplayArticle.asp?xfile=data/todaysfeatures/2005/September/todaysfeatur....
SAN FRANCISCO - Want to watch TV on your mobile phone? The wireless industry is betting billions that you do.
And they’re not talking about just downloading or streaming on-demand videoclips to your phone. Efforts are afoot to broadcast TV programming nationwide to a new generation of mobile phones that can tune in, just like an at-home TV.
Despite the billions of dollars US wireless operators have spent upgrading their networks to offer such multimedia content as videos and music, they are insufficient for the job.
The problem is that they are designed for two-way, on-demand access. To broadcast programming on such networks would require that each show be sent to each subscriber separately - an impossibly time-consuming and expensive proposition.
“It’s very difficult to offer high-definition TV on a handset through existing networks,” says Andrew Cole, an analyst with A.T. Kearney. “You have to offload that through a separate network.”
Several initiatives are under way to achieve just that, a separate wireless network built specifically for one-way multimedia broadcasting.
Building the network
Leading the charge in the United States is wireless bellwether Qualcomm, which has invested $800 million to date in its vision for mobile broadcast TV.
Called MediaFLO, this effort requires Qualcomm to act much like a cable company, such as Comcast. It must build its own content-delivery system, consisting of an entirely new network of wireless transmitters, on airwaves paid for by the company. Additionally, it requires a new receiver - also built by Qualcomm - that manufacturers will have to incorporate into future phone models if they want their customers to be able to receive such broadcasts. Finally, the company is negotiating airing rights to programs from major media outlets.
Once MediaFLO is operational, Qualcomm hopes to sell the service on a wholesale basis to wireless operators, who would provide it to their subscribers as a complement to their own mobile video services.
The result is a service that offers 15-20 channels of real-time broadcast TV displayed on a mobile phone at 30 frames per second in HD resolution, on par with standard TV. That is twice the frame rate of Verizon’s current VCast high-speed video service, with three times the picture quality.
In addition to the broadcast programming, the MediaFLO system supports a feature called “clipcasting.” Users can select content they would like pushed automatically to their phone and replaced when new installments are created, much like a podcast. Content can be refreshed hourly, daily or weekly, and can consist of video and audio programming.
Universal service
Qualcomm is positioning MediaFLO as a service for all carriers; wireless subscribers, regardless of their carrier, will have access to the same MediaFLO programming.
Carriers could then offer exclusive, on-demand, premium programming of their own to set themselves apart. In addition, carriers could incorporate the MediaFLO stream with such applications as a music store or ringtone store. So a user listening to or watching a music channel via MediaFLO can use the carrier network to buy the ringtone or full-song download of any given track.
“It’s like gluing your TV and Internet together,” says Jeff Lorbeck, VP and general manager of Qualcomm’s MediaFLO division.
As usual, the testing ground for such a dedicated multimedia system is in Asia. Korean operator SK Telekom currently offers a wireless multimedia service using a satellite-based adjunct delivery system called Digital Media Broadcasting. Since its April launch, the DMB service has attracted more than 100,000 subscribers with seven channels of video and 20 of audio. A similar system has been operational in Japan for years.
Also making a play is another wireless giant - Nokia. Its Digital Video Broadcast-Handheld technology is being tested across Europe by several wireless carriers and in the United States by partner Crown Castle Mobile Media.
But like any new technology initiative, the success depends on programming. With this in mind, Qualcomm is aggressively lobbying such well-known brands as ESPN, MTV, Comedy Central and CNN to include their content in the MediaFLO service.
Qualcomm does not expect commercial implementations until next fall, but it already has the support of several content providers
WiMax won't beat 3G
Mobile operators and fixed-line players will use WiMax to add to what they've got.
By Stephen Lawson, IDG News Service
August 31, 05
http://www.techworld.com/mobility/features/index.cfm?featureid=1719&inkc=0
For fans of 3G who are eyeing the impact of emerging wireless broadband technology, the news is good: In a few years, you'll probably have a choice.
The emerging mobile WiMax standard and other networks that follow you around will probably be sharing the air in the next few years, but they aren't likely to displace the technologies that big cellular operators are deploying now and planning to upgrade, according to carriers, vendors and industry analysts. Instead, look for wireless broadband to be deployed by mobile newcomers, such as cable operators and smaller carriers, and as a supplement to a few big carriers' 3G networks.
Different foundations
Both 3G and mobile wireless broadband systems are designed to deliver high-speed services to users on the move, but they have different technical foundations. Whereas 3G is the latest generation of cellular technology, wireless broadband systems are the first generation of new types of networks. The two paths may converge in a future "4G" system, but that is still years away from being defined, according to Michael Cai, an analyst at Parks Associates, in Dallas.
Today, carriers and analysts view wireless broadband as well suited to rich multimedia and enterprise applications that are more likely to be used on notebook PCs than on handsets. Meanwhile, cellular systems such as 3G can keep doing what they do now, serving many users over a larger area using smaller devices.
WiMax goes mobile in 2007
Much attention has been focused on WiMax, which should be out this year in fixed systems but around 2007 is expected to go mobile with the still-developing IEEE 802.16e standard. The WiMax Forum foresees mobile users getting at least 1 Mbit/s and being able to do real-time applications such as VOIP (voice over Internet Protocol) calls. That compares with average data speeds of about 400 kbit/s to 700 kbit/s on the major 3G systems.
Could Flash-OFDM backed by Qualcomm trash WiMax?
There are other wireless broadband technologies, namely FLASH-OFDM (Fast Low-latency Access with Seamless Handoff-Orthogonal Frequency-Division Multiplexing) from Flarion and UMTS TD-CDMA (Universal Mobile Telecommunications System Time-Division Code Division Multiple Access) gear from IPWireless. Both are available now.
CDMA powerhouse Qualcomm's acquisition of Flarion earlier this month could make FLASH-OFDM a formidable competitor to WiMax. Qualcomm said it sees wireless broadband based on OFDM as one of a range of technologies that cellular operators may deploy. But the potential for standards-based economies of scale - even though a mobile standard isn't expected until at least late this year - has put WiMax in the center of the picture for many in the industry.
3G has a five year lead
WiMax can't outrun 3G in the next five years because it will take about that long to get established, in the view of IDC analyst Shiv Bakhshi.
"In the short-to-medium term, it is going to disrupt nothing, because I don't think it'll even find itself a very strong footing in that time," Bakhshi said. "By the time it comes to market ... the cellular world would have progressed, too," he added.
The roadmaps of major mobile operators in both of the world's major cellular technologies, GSM (Global System for Mobile Communications) and CDMA, are pretty solid, said Cai of Parks Associates. This is largely true even in China, a relatively young mobile market, he said.
Mobile operators can use WiMax to extend 3G
However, cellular operators may embrace wireless broadband technologies to supplement their 3G offerings. One such service provider is Sprint, which plans to have 3G in 200 markets by early next year in the form of CDMA2000-1x EV-DO (Evolution-Data Optimized). Its next step after that will be an upgrade called EV-DO Revision A, with a bit more downstream bandwidth than current 3G technologies but probably much faster upstream connections from the end user to the Internet, said Len Barlik, vice president of technology development at Sprint.
Even with that speed boost, Sprint is studying other high-speed wireless technologies, such as WiMax. The carrier has announced partnerships with Intel and Motorola to foster the development of mobile WiMax. However, the carrier sees that technology operating alongside 3G. Wireless broadband might complement 3G in areas where there is high demand for wireless data, such as city centres, Barlik said.
Sprint envisions customers using that type of service for what Barlik called wireless interactive multimedia services, which would recreate a "desktop experience" for customers on the move. Uses might include interactive gaming, downloadable video and audio content, videoconferencing and other applications not yet imagined, he said. WiMax might be a less expensive way for Sprint to deliver high bandwidth to customers with those demands, Barlik said. But the carrier is still studying other wireless broadband options.
"We're really trying to explore [the question], Will the technology meet what's being touted at this point?" he said.
In the US, Sprint has the advantage of holding radio spectrum in the 2.5GHz range, apart from its cellular frequencies, where it might be able to use wireless broadband. But even Cingular, the largest mobile operator in the US, is considering whether to use such technologies to complement its 3G UMTS HSDPA (High-Speed Downlink Packet Access) network, spokesman Ritch Blasi said.
Fixed-line players can use WiMax to get mobile
However, wireless broadband may be more important to new rivals of the big mobile operators.
"Fixed-line players who have been kept out of the wireless market because of regulatory fiat are likely to be more enthused about it than the cellular guys," IDC's Bakhshi said. Those players could include cable operators that want to compete with telecommunications carriers by offering a suite of TV, Internet access, wireline phone and mobile voice and data, analysts said.
WiMax will help developing countries
Though some current mobile operators will add wireless broadband to their services, they will be in the minority, said Mark Whitton, vice president and general manager of WiMax and wireless mesh networks at Nortel Networks. Nortel, a major provider of 3G gear, plans to add mobile WiMax to its lineup. In addition to new mobile providers in developed countries - potentially including cable operators, Internet service providers and even media companies - WiMax could present an attractive opportunity to service providers in less-developed countries where current communications options are more limited, he said.
In a large, developing economy such as China or India, "if they decided they wanted to give WiMax a place of prominence, it could accelerate the industry quite a bit," Whitton said.
Multiple networks - one bill
Operators such as Sprint and Cingular would be doing the right thing if they offered subscribers access to multiple types of networks for different uses in different places, all appearing on one bill, IDC's Bakhshi said. Wireless data users are looking for the best experience wherever they are, he said.
"It's not the killer application, it's a killer environment," Bakhshi said.
'Capital' gains in technology
Commentary: Newsletters tout tech at Washington conference
By Steve Halpern, The Money Show Digest
Last Update: 11:48 AM ET Aug. 29, 2005
http://www.marketwatch.com/news/story.asp?guid=%7B43472A82-DD45-4677-BE64-B14B7A161499%7D&siteid....
Excerpt from above link:
"Technology is the heart of the U.S. economy," said George Gilder, editor of the Gilder Technology Report. One favorite is Microvision (MVIS: news, chart, profile) , which aims to replace computer screens with an image that is reflected on your retina. He notes, "This high-resolution image is good enough to fly a fighter plane by viewing an image in goggles, which contains manuals, and images." He also notes that "the merger of silicon and biotechnology is the most fertile crescent of growth in technology." His top pick in that area is Cepheid (CPHD: news, chart, profile) , whose GeneExpert technology won the post office contract for identifying anthrax. His favorite stock, which has been his top pick for over a decade, is Qualcomm (QCOM: news, chart, profile) , a leader in intellectual property for the next generation of wireless, which he feels should still be a "leading part of any technology portfolio."
QUALCOMM "overweight" target $48.
Monday, August 29, 2005 10:07:54 AM ET
Prudential Financial
http://www.newratings.com/analyst_news/article_990556.html
NEW YORK, August 29 (newratings.com) - Analyst Inder M Singh of Prudential Financial maintains his "overweight" rating on QUALCOMM Inc (QCOM.NAS). The target price is set to $48.
In a research note published this morning, the analyst mentions that Verizon Wireless has announced the reduction of the fees for its CDMA2000 EV-DO service from $79.99 per month to $59.99 per month. The reduction is likely to lead to increased sales volumes for the devices using QUALCOMM’s proprietary technology and chipsets, the analyst says.
WiMax Keeps Gathering Momentum
The "ultimate complement to Wi-Fi," it's expected to be widely available commercially in 2006, with Intel likely leading the way
By Kenneth M. Leon
http://www.businessweek.com/investor/content/aug2005/pi20050826_9926_pi044.htm
A number of recent developments since my last column (see BW Online, 6/20/05, "Here Comes WiMax World") indicate that all of the pieces are coming together for WiMax service.
We at Standard & Poor's Equity Research feel confident that WiMax service will be commercially available in 2006. Trials by telecommunications carriers around the world are already under way.
TESTING IN SUNNY SPAIN. We believe WiMax is the ultimate complement to Wi-Fi, capable of back-hauling wireless hot spots and wireless LANs (local area networks) to the Internet, providing campus connectivity, and offering a wireless alternative to cable and DSL for last-mile broadband access. It has a service range of up to 50 kilometers and provides data rates of up to 280 megabits per second per base station.
Just as a refresher, WiMax stands for worldwide interoperability for microwave access. It's a wireless technology that has been updated from IEEE 802.16 to the 802.16-2004 specifications for fixed wireless services.
Many vendors are beginning to submit their WiMax base-station and customer-premises equipment for network interoperability testing at Cenecom, the WiMax Forum Certification Laboratory, which opened in early August in Malaga, Spain. This means all WiMax products must comply with 802.16-2004 and be certified by Cenecom in Spain.
CORPORATE DONATIONS. Intel (INTC ; ranked hold; recent price: $26) plans to begin shipping its new WiMax chip, known as Rosedale, to customers in late 2005. It has entered into nonexclusive alliances with Alcatel (ALA ; hold; $12) and Nokia (NOK ; hold; $16) to deliver WiMax equipment in the second half of 2005.
This month, Intel said it's already helping 13 communities in the U.S. and internationally in varied wireless projects like Wi-Fi, and we expect it to expand to broader WiMax networks in the coming months. According to Reuters, Intel expects to work with more than 100 cities around the globe to improve public services via WiMax use.
Many cities are planning Wi-Fi and WiMax networks to bring affordable broadband wireless Internet service to all their residents within a year. Intel has donated capital to projects in several cities, including Philadelphia, Cleveland, Corpus Christi, Tex., and Portland, Ore.
SERVICE-PROVIDER QUESTIONS. Recently, Philadelphia selected EarthLink (ELNK ; hold; $9) and Hewlett-Packard (HPQ ; hold; $27) as finalists in a bidding process for the construction of a citywide wireless broadband network.
While the equipment suppliers and chipmakers see win-win scenarios for deploying WiMax, the picture is far from clear on the service-provider side of the business. Right now, there's no authorized radio frequency spectrum from the Federal Communications Commission for the issuance of WiMax licenses.
Conventional thinking would suggest, in our view, that licenses are needed for startups to get funded from the capital markets in addition to private-equity firms. So for the major wireless carriers, which paid billions of dollars to the FCC for authorized 3G licenses or additional radio frequency spectrum, how can WiMax be a good thing for their broadband wireless business or return on invested capital?
ROOFTOPS KEY. The U.S. has several emerging fixed wireless carriers, including AirBand, Clearwire, and TowerStream. These carriers believe bandwidth is adequate within 50 megahertz to 500 megahertz bands for Wi-Fi and WiMax without seeking radio frequency licenses from the FCC.
TowerStream will be able to provide quick installation times, with 48-hour guarantees for new equipment that will be SIP-enabled, a stantard that allows for Internet voice service. In early August, TowerStream announced an alliance with Vonage Marketing, a subsidiary of Vonage Holdings, so its customers can choose Vonage's small-business Net telephone services with low-rate billing.
The barriers to entry may be weak for WiMax from a license regulatory perspective, but some startups believe the value proposition is tied more to building rooftops.
PRICE DROPPING. If a WiMax provider is able to secure "last interference rights" through long-term lease contracts for the tallest buildings' rooftops, these companies may gain a strong advantage over late entrants or incumbent service providers that lack the optimum line-of-sight to the target customers or office buildings in metropolitan markets.
Some of these companies don't believe you need a uniformed radio frequency in the U.S. market. In our view, vendors can make adjustments in the radio frequency used by the base-station equipment and customer-premises equipment, but the economies of scale that lead to lower WiMax equipment pricing may be problematic.
Nonetheless, TowerStream sees base-station equipment in the $30,000 to $40,000 range in 2006 and self-installed customer gear priced at $400 to $500 per unit initially, then coming down to around $250 in 18 months.
QUALCOMM'S PLAN. OFDMA, which stands for Orthogonal frequency division multiplex access, is the preferred radio air frequency for WiMax. This radio frequency technology has many developers but, in our view, it remains uncertain whether any single one has the OFDMA intellectual-property rights as they relate to WiMax.
Qualcomm (QCOM ; buy; $40), however, a leading developer and innovator of code division multiple access (CDMA) and other advanced wireless technologies, announced in August that it plans to acquire Flarion Technologies, a pioneer and leading developer of OFDMA technology and the inventor of FLASH-OFDM technology for mobile broadband Internet protocol services.
Flarion, with an expansive portfolio of OFDMA intellectual property, has worked closely with several operators worldwide in developing and demonstrating OFDMA technology and products. Qualcomm plans to pay approximately $600 million net of Flarion's projected cash at closing, in Qualcomm stock and cash, including the assumption of options and warrants at fair value.
LAPTOP PLANS. Upon the satisfaction of certain milestones over the next few years, Qualcomm may also pay an additional $205 million in the form of cash and Qualcomm stock. Completion of the acquisition, which is subject to necessary approvals, is expected later this year.
It's worth noting that the first WiMax Forum-certified products are targeted for fixed WiMax services, not mobile. The initial certifications will cover equipment in the 3.5-gigahertz frequency band. The forum will make sure all future enhancements to the baseline profiles will support backward compatibility.
Probably by early 2007, the WiMax Forum plans to certify IEEE 802.16e for mobile wireless access from laptops and handhelds. We believe Dell (DELL ; strong buy; $36) and other major PC makers are already talking with Intel and other chipmakers about their design requirements for WiMax inside a laptop.
Other WiMax vendors are busy. In addition to Intel, Japanese chipmaker Fujitsu announced in early 2005 that it had begun developing a chip similar to Rosedale, which it hoped to launch in 2006. Select members of the WiMax Forum -- including Airspan Networks (AIRN ; buy; $5), Alvarion (ALVR ; buy; $9), Aperto Networks, Ensemble Communications, Navini Networks, Nokia, Proxim, and Wi-LAN -- plan to start shipping products in late 2005 or 2006. We would expect Cisco Systems' (CSCO ; buy; $18) Linksys division, Netgear (NTGR ; strong buy; $22), and others to be very active through consumer-electronics channels with WiMax products.
Required Disclosures
In the U.S.
As of June 30, 2005, research analysts at Standard & Poor's Equity Research Services U.S. have recommended 30.2% of issuers with buy recommendations, 57.5% with hold recommendations and 12.3% with sell recommendations.
In Europe
As of June 30, 2005, research analysts at Standard & Poor's Equity Research Services Europe have recommended 34.4% of issuers with buy recommendations, 46.8% with hold recommendations and 18.8% with sell recommendations.
In Asia
As of June 30, 2005, research analysts at Standard & Poor's Equity Research Services Asia have recommended 33.3% of issuers with buy recommendations, 47.2% with hold recommendations and 19.5% with sell recommendations.
Globally
As of June 30, 2005, research analysts at Standard & Poor's Equity Research Services globally have recommended 31.0% of issuers with buy recommendations, 55.4% with hold recommendations and 13.6% with sell recommendations.
5-STARS (Strong Buy): Total return is expected to outperform the total return of a relevant benchmark, by a wide margin over the coming 12 months, with shares rising in price on an absolute basis.
4-STARS (Buy): Total return is expected to outperform the total return of a relevant benchmark over the coming 12 months, with shares rising in price on an absolute basis.
3-STARS (Hold): Total return is expected to closely approximate the total return of a relevant benchmark over the coming 12 months, with shares generally rising in price on an absolute basis.
2-STARS (Sell): Total return is expected to underperform the total return of a relevant benchmark over the coming 12 months, and the share price is not anticipated to show a gain.
1-STARS (Strong Sell): Total return is expected to underperform the total return of a relevant benchmark by a wide margin over the coming 12 months, with shares falling in price on an absolute basis.
Relevant benchmarks: in the U.S. the relevant benchmark is the S&P 500 Index, in Europe the S&P Europe 350 Index, in Asia the S&P Asia 50 Index, and in Malaysia the KLCI or KL Emas Index.
For All Regions:
All of the views expressed in this research report accurately reflect the research analyst's personal views regarding any and all of the subject securities or issuers. No part of analyst compensation was, is, or will be, directly or indirectly, related to the specific recommendations or views expressed in this research report.
Additional information is available upon request.
Other Disclosures
This report has been prepared and issued by Standard & Poor's and/or one of its affiliates. In the United States, research reports are prepared by Standard & Poor's Investment Advisory Services LLC ("SPIAS"). In the United States, research reports are issued by Standard & Poor's ("S&P"), in the United Kingdom by Standard & Poor's LLC ("S&P LLC"), which is authorized and regulated by the Financial Services Authority; in Hong Kong by Standard & Poor's LLC which is regulated by the Hong Kong Securities Futures Commission, in Singapore by Standard & Poor's LLC, which is regulated by the Monetary Authority of Singapore; in Japan by Standard & Poor's LLC, which is regulated by the Kanto Financial Bureau; in Sweden by Standard & Poor's AB ("S&P AB"), in Malaysia by Standard & Poor's Malaysia Sdn Bhd ("S&PM") which is regulated by the Securities Commission and in Australia by Standard & Poor's Information Services (Australia) Pty Ltd ("SPIS") which is regulated by the Australian Securities & Investments Commission.
The research and analytical services performed by SPIAS, S&P LLC, S&P AB, S&PM and SPIS are each conducted separately from any other analytical activity of Standard & Poor's.
S&P and/or one of its affiliates has performed services for and received compensation from INTC, ALA, NOK, HPQ, QCOM, DELL and CSCO during the past 12 months.
ELNK, AIRN, ALVR and NTGR are not customers of S&P or its affiliates.
Disclaimers
This material is based upon information that we consider to be reliable, but neither S&P nor its affiliates warrant its completeness, accuracy or adequacy and it should not be relied upon as such. With respect to reports issued by S&P LLC-Japan and in the case of inconsistencies between the English and Japanese version of a report, the English version prevails. Neither S&P LLC nor S&P guarantees the accuracy of the translation. Assumptions, opinions and estimates constitute our judgment as of the date of this material and are subject to change without notice. Neither S&P nor its affiliates are responsible for any errors or omissions or for results obtained from the use of this information. Past performance is not necessarily indicative of future results.
This material is not intended as an offer or solicitation for the purchase or sale of any security or other financial instrument. Securities, financial instruments or strategies mentioned herein may not be suitable for all investors. Any opinions expressed herein are given in good faith, are subject to change without notice, and are only correct as of the stated date of their issue. Prices, values, or income from any securities or investments mentioned in this report may fall against the interests of the investor and the investor may get back less than the amount invested. Where an investment is described as being likely to yield income, please note that the amount of income that the investor will receive from such an investment may fluctuate. Where an investment or security is denominated in a different currency to the investor's currency of reference, changes in rates of exchange may have an adverse effect on the value, price or income of or from that investment to the investor. The information contained in this report does not constitute advice on the tax consequences of making any particular investment decision. This material does not take into account your particular investment objectives, financial situations or needs and is not intended as a recommendation of particular securities, financial instruments or strategies to you. Before acting on any recommendation in this material, you should consider whether it is suitable for your particular circumstances and, if necessary, seek professional advice.
NETGEAR(R) and Flarion Announce Availability of Jointly Developed Mobile Broadband Router for Mobile Operators
http://home.businesswire.com/portal/site/google/index.jsp?ndmViewId=news_view&newsId=20050823005....
SANTA CLARA, Calif. & BEDMINSTER, N.J.--(BUSINESS WIRE)--Aug. 23, 2005--
World's First Mobile Broadband Router (MBR814) Offers FLASH-OFDM(R) for Access and Wi-Fi for Shared Access, Removing the Need for DSL or Cable Modems
NETGEAR, Inc., (Nasdaq: NTGR), a worldwide provider of technologically advanced, branded networking products, and Flarion Technologies, the architect of FLASH-OFDM(R) for mobile broadband, today announced the worldwide availability of a jointly developed product for mobile operators: the NETGEAR Mobile Broadband Router 814 (MBR814). The MBR814 enables an operator's customers to share FLASH-OFDM mobile broadband access with Wi-Fi and Ethernet.
"Our strategic relationship has brought to market a unique broadband access solution," said Patrick Lo, NETGEAR's chairman and chief executive officer. "Customers welcome the MBR814 for shared broadband access within small offices, homes and anywhere FLASH-OFDM access is available."
Mobile operators who have deployed FLASH-OFDM can offer the NETGEAR MBR814 to customers as early as August 2005.
"The new MBR 814 will meet our customer needs for fixed-mobile broadband access for home and office; we are thrilled to have the new device from NETGEAR and Flarion," said Danny McWhorter, vice president of Cellular One of Amarillo.
Cellular One of Amarillo, Texas, and Citizens Telecom in Virginia will soon receive early deliveries of the new product with European customers to follow such as Digita of Finland, who chose FLASH-OFDM for a countrywide deployment in the 450MHz band and RETEL, who chose Arbital and Flarion for a new network in Croatia.
"Just nine months after NETGEAR and Flarion entered into a strategic partnership to productize and deliver integrated FLASH-OFDM(R) and Wi-Fi functionality, the two companies are shipping a fully integrated product to mobile operators," said Michael Gallagher, president of Flarion Technologies. "Converged networks will continue to shape the industry and it's our responsibility to deliver product solutions to help customers connect from anywhere, at any time."
About the NETGEAR(R) Mobile Broadband Router 814
-- LAN Ports: Four (4) 10/100 Mbps auto-sensing, RJ-45 ports
-- Wireless Interfaces: WLAN built-in 802.11g and mobile broadband access with FLASH-OFDM (R)
-- Security: Firewall: Stateful Packet Inspection (SPI) to prevent Denial of Service (DoS) attacks. Intrusion Detection System (IDS) including logging, reporting, and e-mail alerts, web URL content filtering. VPN Functionality: VPN pass-through (IPSec, PPTP, and L2TP)
-- Dimensions (H x W x D): 1.2 x 8.75 x 6 in. (30 x 224 x 153 mm)
-- See product data sheet and photo at: www.flarion.com/mbr814 and www.netgear.com/products/details/MBR814XF.php.
The average speed of a FLASH-OFDM network is 1 to 1.5 Mbps in the downlink, with peak rates of 3.2Mbps, and 300-500 Kbps in the uplink. With Flarion's IP-friendly FLASH-OFDM(R) technology, mobile operators can seamlessly connect corporate LANs with a wireless Wide Area Network with the speed and low packet latency that exceeds stringent corporate network requirements.
On August 11, QUALCOMM announced its intentions to acquire Flarion Technologies. The deal is expected to close before end of 2005.
About NETGEAR, Inc.
NETGEAR (Nasdaq: NTGR) designs technologically advanced, branded networking products that address the specific needs of small and medium business and home users. The Company's product offerings enables users to share Internet access, peripherals, files, digital multimedia content and applications among multiple personal computers and other Internet-enabled devices. NETGEAR is headquartered in Santa Clara, Calif. For more information, visit the company's Web site at www.netgear.com or call (408) 907-8000.
(C)2005 NETGEAR, Inc. NETGEAR and the NETGEAR Logo are trademarks or registered trademarks of (C)2005 NETGEAR, Inc. NETGEAR and the NETGEAR Logo are trademarks or registered trademarks of NETGEAR, Inc. in the United States and/or other countries. Other brand and product names are trademarks or registered trademarks of their respective holders. Information is subject to change without notice. All rights reserved.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995 for NETGEAR, Inc.:
This press release contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Specifically, statements concerning NETGEAR's mobile broadband router, and expected performance characteristics, specifications, market acceptance, market growth, specific uses, user feedback and market position of NETGEAR's products and technology are forward-looking statements within the meaning of the Safe Harbor. These statements are based on management's current expectations and are subject to certain risks and uncertainties, including, without limitation, the following: the actual price, performance and ease of use of NETGEAR's products, including the NETGEAR mobile broadband router, may not meet the price, performance and ease of use requirements of end-users; the performance of NETGEAR's products may be adversely affected by real world operating conditions; the ability of NETGEAR to market and sell its products and technology, including the mobile broadband router; the impact and pricing of competing products; and the introduction of alternative technological solutions. Further information on potential risk factors that could affect NETGEAR and its business are detailed in the Company's periodic filings with the Securities and Exchange Commission, including, but not limited to, those risks and uncertainties listed in the section entitled "Risk Factors Affecting Future Results", pages 19 through 28, in the Company's Quarterly Report on Form 10-Q for the fiscal quarter ended July 3, 2005, filed with the Securities and Exchange Commission on August 12, 2005. NETGEAR undertakes no obligation to release publicly any revisions to any forward-looking statements contained herein to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.
About Flarion Technologies
Flarion's FLASH-OFDM(R) technology enables licensed mobile operators to profitably offer voice and data broadband services. Flarion Technologies is based in Bedminster, New Jersey (USA). www.flarion.com
Note to editors: Flarion and Flexband are trademarks and FLASH-OFDM is a registered trademark of Flarion Technologies. Other trademarks and registered trademarks referenced herein remain the property of their respective owners.
Contacts
NETGEAR Inc.
Company:
Doug Hagan, 408-907-8053
doug.hagan@netgear.com
or
Media for NETGEAR
Integrity Public Relations
Ken Hagihara, 949-768-4423
ken@integritypr.net
or
Sterling Comm.
Lisa K. Hawes, 408-395-5500 x227
lhawes@sterlingpr.com
or
Flarion Technologies
Company:
Ronny A. Haraldsvik, 831-648-1214
ronny@flarion.com
or
Flarion Technologies, Europe
Joe Barrett, +44 7976 037327
j.barrett@flarion.com
or
Media for Flarion
Europe
AxiCom
Richard White
Richard.white@axicom.com
or
US
AccessPR
Chris Norris, 415-844-6285
cnorris@accesspr.com
Average price for 3G handset is $215
The average price of cell phones using next-generation wireless technology will creep up $3 during the next few months, cell phone chipmaker Qualcomm said this week.
http://www.52rd.com/S_Txt/2005_8/txt1591.htm
The increase, from $212 to $215, illuminates the cell phone industry''s failure so far to make an important piece of its future more affordable to the mass market. Industry observers consider lower prices for phones based on wCDMA (wideband code division multiple access) key to making the devices as ubiquitous as the cell phone industry would like.
Qualcomm this week lowered its estimate of the number of wCDMA handsets expected to ship this year from 50 million to about 45 million, although the company did not blame phone prices for the decreased shipments.
Nokia, the world''s No. 1 handset maker, also noted this week that wCDMA average selling prices are up, but executives addressing financial analysts didn''t disclose by how much.
"The wCDMA market in 2005 will either be in line, or slightly lower, than what we previously estimated," Nokia Chief Executive Officer Jorma Ollila said during a conference call with financial analysts this week.
wCDMA is just one of many standards to manage the digital bits that make up cell phone calls and wireless Internet sessions. But it''s perhaps the most important one because it''s at the finish line of a long and expensive effort to build networks that can accommodate billions of minutes of cell phone conversations and better compete against cable and landline phone providers by providing high-speed Internet service.
Hundreds of cell phone operators plan to build or lease wCDMA networks in order to increase calling capacity and generate more revenue by selling high-speed Internet access rivaling that available via cable or telephone lines. Along with that service, cell phone operators would market handsets with cutting-edge features such as video players or megapixel video cameras.
That makes wCDMA technology attractive but also increases pressure to keep handset prices as low as possible. Even slight increases can eat into the profits of operators, who typically subsidize a percentage of handset prices to help sell cell phone services to consumers. Nowadays, splurging on a cell phone means paying about $130 for an LG VX8100, a cutting-edge handset capable of playing videos or music stored as MP3 files. At full retail, the handset would cost at least $50 more. In the U.S., phones are often so heavily subsidized they are free to customers who buy phone service.
Qualcomm is facing pressure to lower wCDMA handset prices mainly because the chipmaker owns many of the standard''s patents. Licensing these patents to manufacturers has become a big business for the company, accounting for about 36 percent of the revenue it generates through all its licensing agreements with manufacturers.
An immediate goal for Qualcomm seems to be getting wCDMA handset prices below $200 per handset. There will be two such phones, from different and as-yet-unnamed device makers, on the market by the end of the year, Qualcomm Chief Executive Officer Paul Jacobs told financial analysts during a conference call this week to discuss its latest earnings.
"Prices will get even more dramatically lower" in the years that follow, he added.
Dr. Rajiv Laroia to Deliver Keynote at GSPx 2005; Attendees at Signal Processing Conference and Expo Will Learn about the Latest Mobile OFDMA Applications from Industry Guru
GSPx 2005
http://home.businesswire.com/portal/site/google/index.jsp?ndmViewId=news_view&newsId=20050822005....
NEWTON, Mass.--(BUSINESS WIRE)--Aug. 22, 2005--Global Technology Conferences today announced that Dr. Rajiv Laroia, CTO of QUALCOMM's OFDMA division (former CTO and founder of Flarion, acquired by QUALCOMM August, 2005), will deliver the keynote address "Mobile OFDMA for Triple Play Services" at GSPx 2005. GSPx will take place October 24-27 at the Santa Clara Convention Center in California.
"Dr. Laroia brings a track record of successful OFDMA implementation to the conference. By implementing OFDMA technology, he has profitably increased the data transmission power of mobile broadband voice, data and video for many mobile operators," said Dr. Amnon Aliphas, GSPx conference chair. "GSPx attendees will learn about the latest applications for OFDMA and how it will affect the market."
Dr. Laroia is a recognized industry expert in OFDMA and other cellular multiple-access technologies and is intimately familiar with current and next-generation wireless standards. He draws from a diverse technological background spanning wireless communication, data transmission, information theory, VLSI design and architecture, analog mixed-signal and RF circuit design, high-speed AD-DA data converters, and video/image compression.
Before founding Flarion, Dr. Laroia was head of Lucent Technologies Bell Laboratories' Digital Communications Research Department in the Wireless Research Center, where he and his team started to develop a FLASH-OFDM(R) technology-based wireless system. His years at Bell Labs have generated more than 35 patents with total patent licensing revenue in excess of $25 million.
To register for GSPx 2005, or for information about exhibitor and sponsorship opportunities, visit www.gspx.com.
About GSPx
GSPx is the comprehensive signal processing event with white paper presentations, technical workshops, tutorials, technology panels, exhibits and the New Product Forum. The conference targets design engineers and senior-level executives responsible for the development of embedded technologies and products. GSPx will cover the latest technology in video compression, wireless, multi-core/multiprocessors, synthetic aperture radar image exploitation and more. GSPx is sponsored by The MathWorks and other industry leaders in the signal processing field. To register or exhibit at GSPx 2005, or for more information, visit www.gspx.com.
Contacts
Lori Zielinski, 503-595-2852
gspx@vtm-inc.com
Why Qualcomm Has Its Wallet Out
The Elata and Flarion acquisitions reflect the outfit's need to keep abreast of tech's latest trends. Expect more of the same
AUGUST 22, 2005
By Olga Kharif
http://www.businessweek.com/technology/content/aug2005/tc20050822_7017_tc024.htm
Qualcomm (QCOM ) is on its biggest buying spree in five years. On Aug. 17, the wireless technology powerhouse acquired Britain-based software startup Elata for $57 million in cash. A few days earlier, it plunked down $600 million in cash and stock for Flarion, a U.S.-based wireless network-technology outfit. And many analysts expect more purchases in the coming months. Advertisement
What's driving this acquisition urge? Certainly not any trouble with Qualcomm's core business. Sales are about to enter a growth spurt, as Code Division Multiplexing (CDMA), a cutting-edge wireless technology for which the company holds more than 3,000 patents, is deployed all over the world. In the fiscal year ending in September, the San Diego company should reach nearly $6 billion in sales, almost double its year 2000 revenues.
NEED TO SPEED. But a problem looms: In the fast-paced life of wireless technology, CDMA can't remain on the cutting edge forever. "CDMA will be important for another 10 years, but after that it could be largely obsolete," says Albert Lin, an analyst with American Technology Research in San Francisco. "The world will demand more."
Soon enough, users will likely want next-generation wireless technology, offering ultrafast mobile video and cheap wireless Internet access at speeds 20 to 30 times faster than today's.
So if it wants to maintain its 42% operating margins and exorbitant royalty fees in the long term, Qualcomm -- whose licensing revenues contribute 34% of sales -- must expand its patents portfolio to encompass non-CDMA technologies. Many analysts think Flarion's patent portfolio might offer new growth opportunities.
FIELD AFLUTTER. Qualcomm also needs to diversify its revenues into such markets as software for cell phones, say analysts. Enter Elata: The startup's code should strengthen Qualcomm's Brew software, allowing carriers to sell and deliver content to their customers' mobile phones.
This next leg of Qualcomm's evolution, led by new CEO Paul Jacobs, who took over the post from his father and Qualcomm founder in July, will likely prove even more challenging than its initial foray into CDMA.
Before CDMA took off, service providers could pick one of about four different wireless technologies, including Qualcomm's proprietary technology, to upgrade their networks. Now, "there are three times as many choices," says Lin.
WISE PURCHASE. Which of these wireless technologies will emerge as a leader next is still unclear, says Shiv Bakhshi, an analyst with tech consultancy IDC. So Qualcomm has to buy all the wireless know-how it can get its hands on to hedge its bets, Bakhshi believes.
The Flarion acquisition should help a great deal. For one, the outfit pioneered an early favorite, FLASH-OFDM (Fast Low-Latency Access with Seamless Handoff-Orthogonal Frequency Division Multiplexing), which has at least three times the capacity of today's CDMA, says Lin.
The Flarion acquisition likely also solidifies Qualcomm's presence in a competing and even faster flavor of OFDM called WiMax, pushed by chipmaker Intel (INTC ). Thanks to internal R&D as well as the patents Qualcomm acquired with Flarion, "Qualcomm believes it has intellectual property that is relevant to WiMax," according to the company.
PROSPECTIVE BUYS. So if WiMax takes off in the next year or two, Qualcomm won't be left behind. It might even influence that market's development, says Michael Mahoney, portfolio manager with EGM Capital hedge funds in San Francisco.
The upshot? Paul Jacobs & Co. may just be getting started down the shopping aisle. "What they've done with Flarion is a step up in their acquisition strategy," says Mahoney. The company wouldn't comment for this story on future purchases. "Qualcomm actively evaluates acquisition opportunities that allow the company to augment its intellectual property, product portfolio, and engineering employee base," according to a company spokesperson.
What might Qualcomm be interested in? Industry insiders point to a handful of emerging wireless technologies. For starters, Qualcomm might want to acquire additional OFDM patents in case this rival technology gets adopted worldwide.
PATENT QUEST. Possible targets might also include companies with WiMax patents. Or, perhaps Qualcomm will jump into OFDM's cousin, Ultra-Wideband (UWB) technology, says Peter Hofstra, an analyst for AIC funds in Canada. UWB can send gigabytes of data per second over distances of about 30 feet.
One possible target, privately held Alereon, makes UWB chips for PCs and mobile devices and owns more than 120 related patents, Hofstra says. Or, Qualcomm might want to buy a company in the so-called mesh networks business, believes Lin. Mesh networks consist of tiny devices, each containing an antenna, which convey information to one another like basketball players passing a ball around.
This way of building a wireless network could be used to enhance performance of many other wireless technologies Qualcomm has a hand in. Even with Motorola (MOT ) acquiring startup MeshNetworks last November, there are still lots of other attractive outfits, such as privately held Dust Inc., for Qualcomm to consider.
While the possibilities remain endless, it's clear that Qualcomm had better hustle. Buying Flarion and Elata are steps in the right direction, Now, Jacobs & Co. have to keep going to prepare the company for its life after CDMA.
Kharif is a correspondent for BusinessWeek Online in Portland, Ore.
Qualcomm Inc. (QCOM) was rated new "buy" in new coverage by analyst John Lau at Jefferies & Co. The 12-month price target is $50 per share.
Excerpt from the following link:
Analyst Ratings
Published in the Asbury Park Press 08/21/05
http://www.app.com/apps/pbcs.dll/article?AID=/20050821/BUSINESS/508210359/1003
WiMax Must Take the Stage or Miss Its Cue
By Guy Kewney
August 20, 2005
Opinion: Once Wi-Fi was the only real threat to WiMax; now Qualcomm's Flash-OFDM is coming up fast.
http://www.eweek.com/article2/0,1895,1850641,00.asp
The HIPERMAN standard, despite what it sounds like, isn't Intel talking about WiMax. The standard is defined by ETSI, the European Telecommunications Standards Institute, not the IEEE. And much of the delay in getting things started at the new WiMax testing labs in Malaga, Spain, is actually a good thing.
That is to say: It's not caused by failure of the technology. Rather, it's about a serious attempt to reconcile the two standards-setting bodies in this area. ADVERTISEMENT
Some would say that it's succeeded. I'm no big booster of WiMax—at least, not the snake-oil version of WiMax which Intel is offering the world.
I've gone on record several times, here at my own news site, suggesting that for the mobile user, WiMax really doesn't offer anything you can't get from Wi-Fi, or Flash-OFDM or even WCDMA.
But skeptic though I'll happily admit to being, I'm going to call this one a win for the WiMax Forum; I think the 802.16 2004 spec, which provides a shared physical layer with the ETSI HIPERMAN standard, is an achievement which will now rapidly come into use.
The trouble is, the delay caused by harmonizing the two has left a lot of people wondering, are we actually looking at the Emperor's new clothes? Be sure: If there is a problem keeping the royal butt warm, the scandal will be adequately publicized by Qualcomm.
Click here to read about Motorola's WiMax strategy.
There are two issues in play here. One is the simple technical business of getting broadband into areas where it can't easily be connected via cables under the ground or over the road. For that, 802.16d and HIPERMAN technology looks, to me, like a great idea.
The implementation will involve relatively cheap bits of kit, stuck on the tops of tall buildings on or poles, talking to each other at frequencies of 11GHz and up. That means line of sight, and it means broad-spectrum chunks with very high data rates.
There's not the slightest reason to say this won't work. If the standard makes the kit genuinely low in cost, then it will be possible to run virtual cable into new developments, or new business areas in traditional or antique architectures, or even into temporary areas—like a big cruise liner parked in the docks—for a tiny fraction of the cost of laying real fiber in ducts. And the bandwidth will be adequate for serious business use.
But what about mobile WiMax?
If you happen to wander around the WiMax Forum's Web site and pry into their FAQ, you'll discover that the mobile version is 802.16e, and, "The 802.16e standard is being reviewed by IEEE and is expected to be approved in mid-2005."
To read about AT&T's urban WiMax trial, click here.
We all know, in the high-tech business, that "Third Quarter" means Sep. 30, and so "mid-2005" probably doesn't reach its sell-by until then. But the date has slipped, and slipped and slipped; it's been less than a year since I had Intel executive vice presidents telling me that products would be shipping, not just specifications agreed, by this time.
And this time is the time of Qualcomm and Flarion. As Timothy Sanders of WiMax.com urged his readers to consider, WiMax was always going to be a threat to Qualcomm if it worked.
The problems of Wideband CDMA in providing high-speed, low-packet-latency data to the mobile user are still only partly exposed. Band-aid patches like HSPDA and IMS are just cosmetic; and if WiMax could have reached mobile users quickly, Qualcomm's intellectual property empire could have been in trouble.
The main threat it faced, however, was not WiMax; it was Flarion, with Flash-OFDM technology. I've used that; it works, and it works well.
I was streaming live high-res video in a taxi in The Hague more than a year ago on a Flarion-installed network, and there are increasing numbers of such trials, and now, installations, around Europe, the Far East, and even in North America.
And now, that threat is no longer a threat, because Qualcomm owns Flarion.
There are good reasons to say that Wi-Fi wasn't a solution to the problems that WiMax tries to solve. There are also good reasons to dispute that! But it remains a fact that Wi-Fi was really the only threat to WiMax which had public credibility.
With Qualcomm pushing Flash-OFDM, that ceases to be true. Suddenly, the WiMax Forum has to perform, or leave the stage. Has it got time to do the former? Or are we going to hear "the gong"?
Contributing columnist Guy Kewney has been irritating the complacent in high tech since 1974. Previously with PC Mag UK and ZDNet UK, Guy helped found InfoWorld, Personal Computer World, MicroScope, PC Dealer, AFAICS Research and NewsWireless. And he only commits one blog—forgiveable, surely? He can be reached at gkewney@yahoo.com.
Souped up: Flarion purchase expands Qualcomm's horizons
By: BRADLEY J. FIKES - Staff Writer
http://www.nctimes.com/articles/2005/08/21/business/news/12_03_008_20_05.txt
Like eggs and bacon, Qualcomm Inc. and its Code Division Multiple Access technology have been inseparably paired. That's why Qualcomm Inc.'s purchase of wireless start-up Flarion Technologies Inc. is much more significant than even the deal's $600 million value indicates.
The Flarion purchase marks a fundamental change in strategy for San Diego-based Qualcomm, which announced CDMA to a startled and mostly disbelieving wireless industry in 1990. Now, it is poised to offer Flarion's rival technology, a proprietary version of OFDM, or Orthogonal Frequency Division Multiplexing, in addition to another technology called WiMax.
"The move looks so obvious" in retrospect, said Ira Brodsky, president of Datacomm Research Co., based in St. Louis. Brodsky said the wireless industry was apparently deceived by Qualcomm's extremely strong emphasis on CDMA.
Behind the alphabet soup of technologies is the continuing story of Qualcomm's astonishing rise in 20 years from just another San Diego start-up to world leadership in wireless technology. That influence can be grasped in one number: $65 billion, the current value of Qualcomm stock.
Starting with its 1993 acceptance as an official standard in the United States, Qualcomm's CDMA has gradually surpassed the rival standard of GSM, or Global System for Mobile Communications. In one form or another, CDMA is being adopted by wireless carriers worldwide as they upgrade to "third generation" technology.
However, not all wireless companies like adopting Qualcomm's technology. And the history of wireless technology ---- and technology in general ---- teaches that nothing lasts forever. Just as CDMA surpassed GSM, Flarion hoped to become the next Qualcomm with its own "fourth generation" technology, which was tested in 2002 by wireless carrier Nextel, now part of Sprint PCS.
Flarion's technology splits one signal into several signals, sent over different frequencies. This technology was specifically developed to allow fast transmission of data over wireless networks, while existing cellular technology mainly stresses voice. Qualcomm is betting that fast data transmission will become increasingly important, and CDMA is better at that task than existing rivals.
So by purchasing Flarion, Qualcomm not only eliminates one potential competitor, it gets a stake in what could be an even more promising wireless future.
Qualcomm will continue to develop CDMA, said Paul Jacobs, the company's new chief executive, in the Aug. 11 announcement of the Flarion deal. The difference is that now Qualcomm's plate will have a lot more food for the wireless industry.
Proof of concept
Qualcomm sold the wireless industry on CDMA based on two factors: It can squeeze more calls into a given portion of spectrum, and it is better at transmitting data at high speeds. The latter point is becoming increasingly important as laptop-wielding road warriors increasingly wish to connect to the Internet or their own company networks from wherever they are.
As its name implies, Qualcomm's technology transmits conversations by using a code. Each conversation is tagged with this unique code. A Qualcomm cell phone listens to transmissions tagged with this code, ignoring others. The conversation is sent on a range of frequencies, skipping back and forth. This means that CDMA makes full use of the frequencies all the time.
Qualcomm likens this to a person's ability to zero in on one speaker at a party where everyone is talking in a different language. You focus on the language you understand, and disregard the rest as meaningless background noise.
By contrast, GSM slices conversations into slices of time ---- first you go, then you, then you. That one-at-a-time strategy prevents confusion, but allows for fewer conversations.
These advantages of CDMA were mainly theoretical back in the early '90s, when Qualcomm began making its pitch to cell phone companies. Qualcomm was ridiculed for making assumptions about the progress of technology, especially microchip processing power, which Moore's Law said doubles in 18 months.
But the assumptions proved accurate, and problems with CDMA were solved. The first CDMA phones were nearly brick-sized, while GSM phones were much sleeker and had better battery life. Those discrepancies evaporated as Qualcomm engineers refined the technology.
Armed with CDMA, Verizon Wireless now offers wireless speeds of up to 2 megabits per second, nearly as fast as a cable modem. Sprint PCS is also introducing its own high-speed CDMA product. By contrast, GSM providers such as Cingular Wireless can only get speeds of up to about 130 kilobits per second.
Turf wars
These statistics convince even the most die-hard Qualcomm opponents that adopting CDMA was inevitable for third-generation, or 3G, technologies. In 1999, Qualcomm and its most bitter rival, Ericsson, settled their legal differences. The Swedish company bought Qualcomm's wireless infrastructure business, not including Qualcomm's cell phone manufacturing arm. That business was sold to the Japanese company Kyocera.
However, Qualcomm's lawyers are still busy. The company was hit in May with a patent infringement suit by Irvine-based Broadcom. A second lawsuit, filed in July, charged Qualcomm with unfairly using its own patents to monopolize a version of CDMA called Wideband CDMA, or W-CDMA. Qualcomm, which called the lawsuits meritless, fired back in July with its own patent infringement suit against Broadcom.
So far, there's no indication that investors are worried about either company. Both Qualcomm and Broadcom stock have risen since May, although Broadcom's stock has risen by a greater percentage. Still, Qualcomm's market value is nearly five times that of Broadcom's $13.9 billion market value.
No hardware, please ---- we're Qualcomm
Qualcomm's divestiture of its hardware business is nearly complete, except for its cell phone microchips. Instead, Qualcomm concentrated on developing its technology. This is similar to Microsoft's strategy of developing its Windows software, but letting companies such as Dell make the actual computers that run Windows.
And Qualcomm is getting Microsoft-like results, as its stock value signifies. There is virtually no marginal cost for Qualcomm in licensing technology; nearly all the expense is in development. Protected by patents and attorneys, Qualcomm does not have to fear competitors in developing CDMA.
But hardware makers have a much tougher time, since they must compete with one another. First Ericsson and then Kyocera began massive layoffs in their manufacturing businesses, including their San Diego CDMA operations. But Asian manufacturers such as Samsung have roared to the top.
These changes make little or no financial difference to Qualcomm, which still gets its royalties no matter who makes the equipment. Qualcomm's challenges are to get the best technologies, protect them with patents, and sell them effectively.
While CDMA has been fundamental to Qualcomm, it is only a means to an end. At its core, Qualcomm is built on the premise that people will want to have access to information in as many places as possible, as fast as possible. And if OFDM, WiMax or some other alphabet soup technology yet undiscovered proves a better path to that end, Qualcomm will want to be there.
Talking Wireless
Wireless terms and what they mean:
CDMA: Code Division Multiple Access. Qualcomm's digital wireless technology that identifies each cell phone conversation with a unique code, allowing multiple conversations to take place in the same frequency range. It's like listening to a person speaking one language, ignoring those speaking different languages.
GSM: Global System for Mobile Communications. A European-developed digital wireless technology that slices different cell phone conversations into tiny time slices, transmitted sequentially to and from a cell tower. The time juggling is done so fast that callers don't notice. It is less efficient in using wireless spectrum than CDMA.
IS-95: The technical name for the Qualcomm CDMA standard, approved in 1993. Qualcomm has since developed more advanced versions of CDMA.
3G: Third Generation. The newest generation of CDMA and GSM digital technology, now in deployment respectively by carriers such as Verizon Wireless and Cingular Wireless. 3G CDMA transmits data at speeds of up to megabits per second, far faster than any GSM technology. (The original digital wireless formats of GSM and CDMA are considered second generation.)
Analog: The plain old first-generation cell phone technology. Analog transmits a continuously varying signal, which is less efficient and more prone to static than digital technologies.
TDMA: Time Division Multiple Access. A less successful relative of GSM, which is gradually being abandoned by wireless carriers. TDMA was used by AT&T Wireless, now part of GSM-using Cingular. Former AT&T Wireless customers are being encouraged to give up their TDMA phones for Cingular's GSM phones.
Contact staff writer Bradley J. Fikes at (760) 739-6641 or bfikes@nctimes.com.
WiMax has momentum, but alternatives are here now
News Story by Stephen Lawson
http://www.computerworld.com/networkingtopics/networking/story/0,10801,104071,00.html
AUGUST 19, 2005 (IDG NEWS SERVICE) - In the race among wireless broadband technologies, the still-developing mobile WiMax is building up a head of steam with a community of supporting vendors. But less well-publicized approaches are available now and have some intriguing advantages.
Two of the more prominent WiMax rivals on the market are Fast Low-latency Access with Seamless Handoff-Orthogonal Frequency-Division Multiplexing (FLASH-OFDM), sold by Flarion Technologies Inc., and Universal Mobile Telecommunications System Time-Division Code Division Multiple Access (UMTS TD-CDMA), which IPWireless Inc. promotes as an easy migration for cellular operators. FLASH-OFDM got a boost earlier this month when Qualcomm Inc. agreed to acquire Flarion. Both of these technologies offer mobility today and are in commercial use.
WiMax, which has the potential to work on a wide range of both licensed and unlicensed radio frequencies, is based on the 802.16 family of standards set by the Institute of Electrical and Electronics Engineers. Gear for fixed implementations is expected to be certified by the WiMax Forum industry group starting late this year. Mobility will come with a standard called 802.16e, probably heading for approval late this year, according to Mo Shakouri, vice president and a board member at the WiMax Forum. Certified gear based on that standard is expected to go into commercial deployment in 2007.
Many in the industry are drawn to the potential economies of scale of a standards-based technology. With a variety of vendors using the standard to build competing products, certified for interoperability, customers should see lower prices and avoid being tied to one vendor, analysts said.
U.S. mobile operator Sprint Corp. has not committed itself to one wireless broadband technology but is a member of the WiMax Forum and is working with equipment vendors to move mobile WiMax forward. Though there is still work to be done on finishing a specification and building a vendor community, Sprint is optimistic.
"What we think is very unique is this global ecosystem around this standard-based approach," said Len Barlik, vice president of technology development at Sprint.
On the other hand, the benefits of the Flarion and IPWireless technologies go beyond the fact that they can be deployed today.
FLASH-OFDM requires less radio spectrum than does WiMax and can be adapted to many different bands depending on what frequencies a service provider holds, said Ronny Haraldsvik, vice president of global communications and marketing at Flarion. That means it could be used with low-frequency bands that offer greater range and thus require fewer base stations, he said. By contrast, certified WiMax products will work only in the frequency bands adopted by the WiMax Forum. The organization initially is focusing on 2.3 GHz and 2.5 GHz, though it may also adopt a lower band, according to Shakouri.
In addition, FLASH-OFDM is designed for network latency of 50 milliseconds or less, which means less typical delay than on WiMax, according to Haraldsvick.
Citizens Telephone Cooperative in Floyd, Va., plans to deploy Flarion's system by year's end and hopes to take advantage of the low latency to offer voice-over-IP services, said Marketing Manager Robert Weeks.
Cellular One of Amarillo in Texas already offers a commercial Flarion-based service that can deliver about 2Mbit/sec. to a laptop PC card over the GSM carrier's existing 1.9-GHz licensed spectrum, said Kim May, marketing manager. It supplements the operator's Enhanced Data Rates for GSM Evolution (EDGE) data service, which has a top speed of 384Kbit/sec.
UMTS TD-CDMA is based on the existing UMTS variant of 3G and can be added easily to a 3G operator's network, said Jon Hambidge, vice president of marketing at IPWireless in San Bruno, Calif. Because of its connection to the UMTS standard, it will be allowed on frequencies that in some parts of the world are reserved for that type of technology, he said.
By contrast, WiMax is likely to involve new spectrum, new technology and even new zoning approvals for antennas, Hambidge said. In addition, UMTS TD-CDMA excels at delivering good bandwidth all the way to the edge of a cell, he said. There are commercial IPWireless networks today deployed by GSM operator T-Mobile Czech Republic AS and other service providers, and Orange SA in France is currently running a trial, according to IPWireless.
Both of these technologies have just one vendor today, though both companies have licensing relationships with large network gear companies. Flarion's partners already include Siemens AG, and the Qualcomm acquisition could help it get in the door at the many vendors that now license CDMA technology from Qualcomm. Meanwhile, a major partner of IPWireless is UTStarcom Inc., an Alameda, Calif., company with a foothold in China.
3G - Wireless broadband unlikely to push 3G aside
Stephen Lawson
http://www.infoworld.nl/idgns/bericht.phtml?id=00256F6C005C22FC00257038005B8FC4
For fans of 3G who are eyeing the impact of emerging wireless broadband technology, the news is good: In a few years, you'll probably have a choice.
The emerging mobile WiMax standard and other networks that follow you around will probably be sharing the air in the next few years, but they aren't likely to displace the technologies that big cellular operators are deploying now and planning to upgrade, according to carriers, vendors and industry analysts. Instead, look for wireless broadband to be deployed by mobile newcomers, such as cable operators and smaller carriers, and as a supplement to a few big carriers' 3G networks.
Both 3G and mobile wireless broadband systems are designed to deliver high-speed services to users on the move, but they have different technical foundations. Whereas 3G is the latest generation of cellular technology, wireless broadband systems are the first generation of new types of networks. The two paths may converge in a future "4G" system, but that is still years away from being defined, according to Michael Cai, an analyst at Parks Associates, in Dallas.
Today, carriers and analysts view wireless broadband as well suited to rich multimedia and enterprise applications that are more likely to be used on notebook PCs than on handsets. Meanwhile, cellular systems such as 3G can keep doing what they do now, serving many users over a larger area using smaller devices.
Much attention has been focused on WiMax, which should be out this year in fixed systems but around 2007 is expected to go mobile with the still-developing IEEE 802.16e standard. The WiMax Forum foresees mobile users getting at least 1M bps (bits per second) and being able to do real-time applications such as VOIP (voice over Internet Protocol) calls. That compares with average data speeds of about 400K bps (bits per second) to 700K bps on the major 3G systems.
There are other wireless broadband technologies, namely FLASH-OFDM (Fast Low-latency Access with Seamless Handoff-Orthogonal Frequency-Division Multiplexing) from Flarion Technologies Inc. and UMTS TD-CDMA (Universal Mobile Telecommunications System Time-Division Code Division Multiple Access) gear from IPWireless Inc. Both are available now. CDMA powerhouse Qualcomm Inc.'s acquisition of Flarion earlier this month could make FLASH-OFDM a formidable competitor to WiMax. Qualcomm said it sees wireless broadband based on OFDM as one of a range of technologies that cellular operators may deploy. But the potential for standards-based economies of scale -- even though a mobile standard isn't expected until at least late this year -- has put WiMax in the center of the picture for many in the industry.
WiMax can't outrun 3G in the next five years because it will take about that long to get established, in the view of IDC analyst Shiv Bakhshi.
"In the short-to-medium term, it is going to disrupt nothing, because I don't think it'll even find itself a very strong footing in that time," Bakhshi said. "By the time it comes to market ... the cellular world would have progressed, too," he added.
The roadmaps of major mobile operators in both of the world's major cellular technologies, GSM (Global System for Mobile Communications) and CDMA, are pretty solid, said Cai of Parks Associates. This is largely true even in China, a relatively young mobile market, he said.
However, cellular operators may embrace wireless broadband technologies to supplement their 3G offerings. One such service provider is Sprint Corp., which plans to have 3G in 200 markets by early next year in the form of CDMA2000-1x EV-DO (Evolution-Data Optimized). Its next step after that will be an upgrade called EV-DO Revision A, with a bit more downstream bandwidth than current 3G technologies but probably much faster upstream connections from the end user to the Internet, said Len Barlik, vice president of technology development at Sprint.
Even with that speed boost, Sprint is studying other high-speed wireless technologies, such as WiMax. The carrier has announced partnerships with Intel Corp. and Motorola Inc. to foster the development of mobile WiMax. However, the carrier sees that technology operating alongside 3G. Wireless broadband might complement 3G in areas where there is high demand for wireless data, such as city centers, Barlik said. Sprint envisions customers using that type of service for what Barlik called wireless interactive multimedia services, which would recreate a "desktop experience" for customers on the move. Uses might include interactive gaming, downloadable video and audio content, videoconferencing and other applications not yet envisioned, he said. WiMax might be a less expensive way for Sprint to deliver high bandwidth to customers with those demands, Barlik said. But the carrier is still studying other wireless broadband options.
"We're really trying to explore [the question], Will the technology meet what's being touted at this point?" he said.
Sprint has the advantage of holding radio spectrum in the 2.5GHz range, apart from its cellular frequencies, where it might be able to use wireless broadband. But even Cingular Wireless LLC, the largest mobile operator in the U.S., is considering whether to use such technologies to complement its 3G UMTS HSDPA (High-Speed Downlink Packet Access) network, spokesman Ritch Blasi said.
However, wireless broadband may be more important to new rivals of the big mobile operators.
"Fixed-line players who have been kept out of the wireless market because of regulatory fiat are likely to be more enthused about it than the cellular guys," IDC's Bakhshi said. Those players could include cable operators that want to compete with telecommunications carriers by offering a suite of TV, Internet access, wireline phone and mobile voice and data, analysts said.
Though some current mobile operators will add wireless broadband to their services, they will be in the minority, said Mark Whitton, vice president and general manager of WiMax and wireless mesh networks at Nortel Networks Corp. Nortel, a major provider of 3G gear, plans to add mobile WiMax to its lineup. In addition to new mobile providers in developed countries -- potentially including cable operators, Internet service providers and even media companies -- WiMax could present an attractive opportunity to service providers in less-developed countries where current communications options are more limited, he said.
In a large, developing economy such as China or India, "if they decided they wanted to give WiMax a place of prominence, it could accelerate the industry quite a bit," Whitton said.
Operators such as Sprint and Cingular would be doing the right thing if they offered subscribers access to multiple types of networks for different uses in different places, all appearing on one bill, IDC's Bakhshi said. Wireless data users are looking for the best experience wherever they are, he said.
"It's not the killer application, it's a killer environment," Bakhshi said.
---
SIDEBAR: WiMax has momentum, but alternatives are here now
In the race among wireless broadband technologies, the still-developing mobile WiMax is building up a head of steam with a community of supporting vendors. But less well-publicized approaches are available now and have some intriguing advantages.
Two of the more prominent WiMax rivals on the market are FLASH-OFDM (Fast Low-latency Access with Seamless Handoff-Orthogonal Frequency-Division Multiplexing), sold by Flarion Technologies Inc., and UMTS TD-CDMA (Universal Mobile Telecommunications System Time-Division Code Division Multiple Access), which IPWireless Inc. promotes as an easy migration for cellular operators. FLASH-OFDM got a boost earlier this month when Qualcomm Inc. agreed to acquire Flarion. Both of these technologies offer mobility today and are in commercial use.
WiMax, which has the potential to work on a wide range of both licensed and unlicensed radio frequencies, is based on the 802.16 family of standards set by the Institute of Electrical and Electronics Engineers Inc. Gear for fixed implementations is expected to be certified by the WiMax Forum industry group starting late this year. Mobility will come with a standard called 802.16e, probably heading for approval late this year, according to Mo Shakouri, vice president and a board member at the WiMax Forum. Certified gear based on that standard is expected to go into commercial deployment in 2007.
Many in the industry are drawn to the potential economies of scale of a standards-based technology. With a variety of vendors using the standard to build competing products, certified for interoperability, customers should see lower prices and avoid being tied to one vendor, analysts said.
U.S. mobile operator Sprint Corp. has not committed itself to one wireless broadband technology but is a member of the WiMax Forum and is working with equipment vendors to move mobile WiMax forward. Though there is still work to be done on finishing a specification and building a vendor community, Sprint is optimistic.
"What we think is very unique is this global ecosystem around this standard-based approach," said Len Barlik, vice president of technology development at Sprint.
On the other hand, the benefits of the Flarion and IPWireless technologies go beyond the fact that they can be deployed today.
FLASH-OFDM requires less radio spectrum than does WiMax and can be adapted to many different bands depending on what frequencies a service provider holds, said Ronny Haraldsvik, vice president of global communications and marketing at Flarion. That means it could be used with low-frequency bands that offer greater range and thus require fewer base stations, he said. By contrast, certified WiMax products will only work in the frequency bands adopted by the WiMax Forum. The organization initially is focusing on 2.3GHz and 2.5GHz, though it may also adopt a lower band, according to Shakouri.
In addition, FLASH-OFDM is designed for network latency of 50 milliseconds or less, which means less typical delay than on WiMax, according to Haraldsvick.
Citizens Telephone Cooperative, in Floyd, Virginia, plans to deploy Flarion's system by year's end and hopes to take advantage of the low latency to offer VOIP (voice over IP) services, said Marketing Manager Robert Weeks.
Cellular One of Amarillo, in Texas, already offers a commercial Flarion-based service that can deliver about 2M bps to a laptop PC Card over the GSM carrier's existing 1.9GHz licensed spectrum, said Kim May, marketing manager. It supplements the operator's EDGE (Enhanced Data Rates for GSM Evolution) data service, which has a top speed of 384K bps.
UMTS TD-CDMA is based on the existing UMTS variant of 3G and can be added easily to a 3G operator's network, said John Hambidge, vice president of marketing at IPWireless, in San Bruno, California. Because of its connection to the UMTS standard, it will be allowed on frequencies that in some parts of the world are reserved for that type of technology, he said. By contrast, WiMax is likely to involve new spectrum, new technology and even new zoning approvals for antennas, Hambidge said. In addition, UMTS TD-CDMA excels at delivering good bandwidth all the way to the edge of a cell, he said. There are commercial IPWireless networks today deployed by GSM operator T-Mobile Czech Republic AS and other service providers, and Orange SA in France is currently running a trial, according to IPWireless.
Both of these technologies have just one vendor today, though both companies have licensing relationships with large network gear companies. Flarion's partners already include Siemens AG, and the Qualcomm acquisition could help it get in the door at the many vendors that now license CDMA technology from Qualcomm. Meanwhile, a major partner of IPWireless is UTStarcom Inc., an Alameda, California, company with a foothold in China.
Qualcomm Seen As Large-Cap Favorite For 2nd Half
Ed Lin, 08.17.05, 9:45 AM ET
http://www.forbes.com/markets/2005/08/17/qualcomm-wireless-pick-0817markets02.html?partner=yahootix
Piper Jaffray highlighted Qualcomm (nasdaq: QCOM - news - people ) as a favorite large-cap stock for the second half of calendar 2005, citing improving near-term datapoints and expectations for strong 3G subscriber growth during 2006.
Piper Jaffray said several regions have shown improving trends recently, including Japan, India and South Korea.
"Recent checks with industry contacts also suggest improved order rates for Qualcomm's chipsets," the research firm noted. "We believe sequentially higher chipset average selling prices reported last quarter reflect improved product mix toward WCDMA and EV-DO. We believe this favorable mix shift will continue over the next several quarters, and we expect stronger operating margins in [the] QCT [unit] during fiscal 2006."
Piper Jaffray rates Qualcomm at "outperform" with a price target of $47.
Good post from G & K on Qualcomm/Flarion
http://www.siliconinvestor.com/readmsg.aspx?msgid=21606163
Rich and Slacker, maybe a press release on Sieman/Flarion dated 10/7/04 would help you on the subject discussed in the previous posts:
http://www.flarion.com/news/pr_2004/100704.asp
October 7, 2004
Siemens to integrate FLASH-OFDM® into its portfolio of mobile broadband solutions
Siemens and Flarion partnering on FLASH-OFDM® Mobile broadband solutions for the 450 MHz frequency band
BEDMINSTER, New Jersey, US, 7th October 2004. Siemens Communications will be integrating FLASH-OFDM® (Orthogonal Frequency Division Multiplexing) technology into its portfolio of mobile broadband solutions. Siemens and Flarion Technologies, the architect of the FLASH-OFDM® mobile broadband system, have signed a memorandum of understanding to collaborate on products for the 450 MHz frequency band. Under the terms of the agreement, Flarion will develop the basic 450 MHz-band equipment according to Siemens specifications. By the second quarter of 2005, Siemens will be offering an end-to-end solution for FLASH-OFDM®, complete with systems integration services.
In many countries, the 450 MHz frequency band had been occupied by analog mobile telephony. The introduction of digital mobile communication has freed up this frequency band again. Siemens research found that particularly mobile operators in Eastern Europe who do not hold UMTS licenses are looking for an affordable mobile broadband solution for the 450 MHz band. The solution from Flarion and Siemens will meet this need. FLASH-OFDM® is a proprietary cellular broadband technology for data services that was developed by Flarion. It enables mobile wireless applications even while the user is traveling at high speeds, such as in a train. The IP (Internet Protocol) interfaces in FLASH-OFDM® enable operators to offer their enterprise customers access to their LANs (Local Area Networks) and paves the way for consumers to enjoy the benefits of the mobile Internet.
"Frequency bands are one of the most valuable assets for mobile operators. The FLASH-OFDM® solution from Flarion and Siemens will support our customers in very quickly and affordably utilizing available frequency bands," said Christoph Caselitz, the President of the Mobile Networks Division at Siemens Communications. "Together with WiMAX (Worldwide Interoperability for Microwave Access) for nomadic wireless services and HSDPA (High Speed Downlink Packet Access) for demanding premium users, FLASH-OFDM® is an outstanding complement to our portfolio of mobile broadband solutions."
"This partnership between Siemens and Flarion brings a new dimension to mobile communications for those operators evaluating the path to all-IP broadband services within the 450 MHz band," said Ray Dolan, Chairman and CEO of Flarion Technologies. "Siemens has the global presence and experience to open up new and exciting markets to the benefit of operators and their customers."
FLASH-OFDM® systems enable users traveling at speeds of up to 250 kilometers per hour to utilize data services at average downlink speeds of 1 to 1.5 megabits per second, capable of bursting to 3.2 megabits per second in individual cases. The uplink typically offers users an average experience of 300 - 500 kilobits per second, bursting to 900 kilobits per second. With latency of only 50 milliseconds, the system is extremely well suited for enterprise or interactive applications. FLASH-OFDM® offers outstanding spectral efficiency and scalability, and provides an air interface for enterprise-class IP services. Because the broadband technology can be so easily deployed, it offers an affordable price-performance ratio.
About Flarion Technologies
Flarion Technologies is mobilizing the Internet with its innovative mobile communications network technology. Flarion's FLASH-OFDM® technology enables mobile operators to profitably offer mobile broadband communication IP services. Flarion's RadioRouter® base station product may be overlaid onto an operator's existing network and radio spectrum, and provides a seamless routing interface to the operator's existing IP network. Flarion Technologies is based in Bedminster, New Jersey (USA). www.flarion.com.
About Siemens Communications
Siemens Communications is one of the largest players in the global telecommunications industry. Siemens is the only provider in the market that offers its customers a full-line portfolio, from end-user devices to complex network infrastructures for enterprises and carriers as well as related services. Siemens Communications is the world's innovation leader in convergent technologies, products and services for wireless, fixed and enterprise networks. It is the largest Siemens group and operates in more than 160 countries around the world. In fiscal 2003 (September 30), its 60,000-strong workforce generated sales of about 17 billion euros. More about Siemens Communications at www.siemens.com/communications.
Anybody noticed that 100,000 QCOM shares traded at 4:16PM
for $41.46/Sh.
http://quotes.nasdaq.com/quote.dll?symbol=QCOM&selected=QCOM&mode=frameset&page=afterhou....
After Hours
Last: $41.57 After Hours
Best Bid: $41.42 After Hours
High: $41.57
After Hours
Volume: 136,139 After Hours
Best Ask: $41.55 After Hours
Low: $41.44
After Hours
Time (ET) After Hours
Price After Hours
Share Volume
16.40 $ 41.57 100
16.30 $ 41.53 100
16.30 $ 41.53 400
16.17 $ 41.44 161
16.16 $ 41.46 100000
16.11 $ 41.45 1000
16.10 $ 41.46 4400
16.07 $ 41.46 1000
16.07 $ 41.49
More on Qualcomm/Flarion from UNION-TRIBUNE
Qualcomm to buy wireless-tech firm
Deal for N.J.'s Flarion is $600 million cash, stock
By Bruce V. Bigelow
UNION-TRIBUNE STAFF WRITER
August 12, 2005
http://www.signonsandiego.com/news/business/20050812-9999-1b12qualcomm.html
In a move that stakes a new claim in future wireless technologies, San Diego's Qualcomm said yesterday it will acquire Flarion Technologies of Bedminster, N.J., for roughly $600 million.
If anything, the cash and stock deal emphasizes the relentless nature of Qualcomm's battle to establish its technology as the standard for the wireless industry.
For most of its 20-year history, Qualcomm struggled to convince a global market that its proprietary wireless technology was better than the competing standards many cellular companies had already adopted.
Flarion specializes in a variety of technologies capable of transmitting enormous amounts of data to mobile devices.
With the transition to third-generation wireless technologies well under way, Qualcomm is now looking over the horizon at what the fourth generation might bring.
The San Diego company envisions wireless devices that receive TV broadcasts via the Internet. Children could play computer video games on the drive from San Diego to San Francisco, and sports fans could tune in to see the latest plays at the beach. The company says TV news programs transmitted to cell phones would be especially helpful during catastrophes.
In buying Flarion, Qualcomm has laid claim to what amounts to a swath of undeveloped country that will likely become a future battleground for the wireless industry. The territory was created essentially by patents that Qualcomm and Flarion hold for wireless technologies capable of providing video and high-speed Internet services.
The combination will make it hard for rivals to move in without crossing Qualcomm's turf, Paul Jacobs, Qualcomm's chief executive officer, told analysts in a conference call.
"Coupled with our existing intellectual property, there is no question that Qualcomm possesses one of the broadest portfolios of wireless patents in the industry," Jacobs said.
Qualcomm is always happy to license its technology, a spokesman added. The San Diego wireless giant, which ranks as the second-largest maker of wireless communications chips in the world, maintains an extensive portfolio of patents covering CDMA, or code-division multiple access, technology.
The company's shares rose $1.27, or 3.2 percent, to close at $40.48 yesterday on the Nasdaq Stock Market. Analysts said the deal should secure Qualcomm's future in an intensely competitive industry, at least for awhile.
"What it means is that 10 years from now, we won't be asking, 'Whatever happened to Qualcomm,' " said Peter Jarich, an industry analyst with Current Analysis.
Flarion, founded in 2000 with technology developed at Bell Labs, is a venture-backed startup company with about 200 employees. As part of the deal, Qualcomm offered to pay an additional $205 million over the next eight years if Flarion can meet a series of technological goals.
"They're going to be integrated into Qualcomm's existing structure," said Jeremy James, a Qualcomm spokesman. "But we want them, we want Flarion's employees to continue to develop what they've been working on."
Flarion has developed a variety of technologies capable of transmitting enormous amounts of data to mobile devices. The technology, called Orthogonal Frequency Division Muliplex Access, or OFDMA, would provide wireless users with high-speed Internet service comparable to a cable or DSL connection.
"One of Qualcomm's core strengths has always been the ability to quickly take technology innovations to market," Jacobs said. The deal "pairs Qualcomm with the strongest technology and product development teams in both CDMA and OFDMA."
Flarion's technology may offer a new option to customers that might have been reluctant or unwilling to adopt Qualcomm's CDMA technology, Jacobs said.
"As the wireless industry moves more and more to generate revenue through data services, operators are looking for increasing differentiation," the chief executive said. "Through the acquisition of Flarion, we can now more effectively support operators who might prefer an OFDMA or hybrid OFDMA-CDMA track for their services."
Jarich added: "They understand there are some markets that don't necessarily want CDMA. So they see an opportunity for a solution, they can take their technology and make it more broadly available and commercial than it is today."
The Flarion-Qualcomm combination also could pose a significant challenge for companies, such as Intel and Motorola, that have been developing future versions of WiMax, an emerging high-speed wireless technology.
WiMax developers could have "a difficult time designing their systems for mobility without infringing Qualcomm patents," as a result of the deal, said Deutsche Bank analyst Brian Modoff.
"We believe our (patent) portfolio as well as Flarion's portfolio would be applicable to WiMax," said Steven Altman, Qualcomm's president and chief operating officer.
The deal is expected to close later this year, pending regulatory approval and other customary conditions.
Qualcomm expects the acquisition to dilute its pro forma earnings for the fiscal year ending in September 2006 by about 3 cents a share.
Wall Street analysts, on average, had expected the company to earn $1.43 a share for fiscal 2006, according to Thomson Financial.
Qualcomm anticipates one-time charges of roughly $10 million, mainly related to in-process research and development.
Upon completing the acquisition, Qualcomm expects to issue stock worth about $267 million, assume existing Flarion options and warrants worth roughly $128 million and pay about $205 million in cash, net of Flarion's projected cash balance.
--------------------------------------------------------------------------------
The Associated Press and Reuters contributed to this report.
Bruce Bigelow: (619) 293-1314; bruce.bigelow@uniontrib.com
Recent wins for Flash-OFDM:
-Flarion inks OFDM Deal in Japan;
-Finland chooses OFDM for a wireless broadband network;
-Citizen wireless to launch commercial mobile broadband services in VA;
-Arbital communications to deploy network in Croatia for Retel.
http://www.flarion.com/
Qualcomm’s Flarion Adventure
http://www.redherring.com/Article.aspx?a=13156&hed=TechSpin%3A+Overstock+Sues+Shill§or=R....
Excerpt from above link:
Nobody likes Qualcomm and that could hurt Flarion, a company with a popular portfolio of technology, which Qualcomm announced on Thursday that it is acquiring (see Qualcomm’s Big Bid for Flarion). According to The Register, it may be a bit of an exaggeration to say “nobody” likes Qualcomm, but even the International Telecommunication Union (ITU) picked TDMA (time division multiple access) instead of CDMA (code division multiple access) technology for GSM (global system for mobile communications) because of the industry’s dislike for Qualcomm. Flarion did a great job of selling Flash-OFDM to those countries that rejected Qualcomm’s technology. And what Flarion needs, above all, is standards approval. The Flash-OFDM (orthogonal frequency multiplex access) technology is currently being pushed through the Institute of Electrical and Electronics Engineers (IEEE) as a standard, which the operators can accept. It would be wrong, probably, to suggest that Qualcomm in any way controls the thinking of the IEEE, said The Register, but as an insider put it today, “they have supported the IEEE in many ways...” and many Qualcomm technical guys and gals sit on IEEE committees, and can vote one way or the other. At a time when CDMA was battling Flash-OFDM, the vote might have gone the other way. Now, the most likely result will be that Flash-OFDM will become a standard, both in the ITU and in the IEEE, and probably much faster than before the acquisition.
Qualcomm Bags Flarion
By Dave Mock
August 12, 2005
http://www.fool.com/News/mft/2005/mft05081207.htm
As if the wireless market weren't interesting enough, Qualcomm (Nasdaq: QCOM) just played a trump card on competitors by announcing the acquisition of privately held Flarion Technologies of Bedminster, N.J. The deal commandeers coveted intellectual property in an advanced form of wireless technology that is expected to be the basis of broadband wireless systems well beyond this decade.
The deal will cost Qualcomm $600 million in cash and stock up front, with future earn-outs of $200 million also possible. This marks Qualcomm's largest acquisition since it paid $1 billion for Snaptrack's GPS technology in 2000.
On the surface, some investors are asking why Qualcomm would pay such a price for a private company that reportedly garners little revenue. After all, Flarion has only 200 employees and has yet to show significant traction in commercial markets based on its proprietary Flash-OFDM technology. For those following the behind-the-scenes tussles for dominance of wireless technology standards, however, it was a prescient move by Qualcomm.
Since Qualcomm's dramatic rise in 1999 -- and subsequent fall -- different camps of investors have been debating just what would unseat Qualcomm's dominance in garnering royalties from products using its CDMA technology. Since Qualcomm earns more than a billion dollars annually from patent licensing, investors are keen to see this high-margin revenue stream continue to grow. Acquiring Flarion can be utilized as part of both a defensive and offensive strategy to perpetuate Qualcomm's licensing business.
Intel (NASDAQ: INTC) has chosen to back wireless broadband technologies Wi-Fi and the coming WiMax, which some pundits predict will unseat the dominance of cellular technologies such as Qualcomm's favored CDMA. While Qualcomm has long downplayed the threat, Flarion's technology will give them leverage to offer an alternative -- particularly, to the mobile version of WiMax. It could also give it ownership to essential patents in the eventual standard. If Qualcomm chooses to press for royalty on standardized proprietary products, the uproar would rival the "holy wars" instigated in the 1990s.
Regardless of how Qualcomm chooses to play this, there's no question that it is a major move by the company -- one that will have many long-term implications in the market. In a future column, I'll go through several important aspects of the Flarion acquisition and what new dynamics come into play.
A Peak At The Wireless Future
August 12, 2005
http://www.mobilepipeline.com/blog/archives/2005/08/a_peak_at_the_w.html
Qualcomm's planned acquisition of wireless broadband vendor Flarion Technologies is much more than just another business story. It speaks volumes about the future of mobile access.
At the very least, it means that, even as 3G is struggling to catch hold, 4G is on the way. A number of pundits and market analysts have been saying that, ultimately, cellular carriers will offer OFDM-based technology, not cellular-based data access. WiMAX is one such technology and Flarion's FLASH-OFDM is another.
That's not to say that OFDM wireless broadband will replace 3G technologies such as EV-DO but, rather, cellular operators will be offering both. Qualcomm's customers are, ultimately, cellular carriers. Since it already has a corner on the 3G market for CDMA-based cellular networks, its acquisition of Flarion is a strong indication that Qualcomm considers OFDM technology another technology of the future. With Qualcomm now on the wireless broadband bandwagon, CDMA carriers will ultimately have this wireless broadband technology built into their cellular infrastructure equipment such as base stations alongside standard 3G technologies.
This is good for both users and the cellular industry. It's good for users because it will give us more choices in terms of the mobile technology we use. It also will mean that our cellular operators will be able to provide fast access over broader areas than they can with cellular data services.
This is good for the cellular industry because the cost structure of wireless broadband technology is such that even small wireless ISPs can afford to launch service. If those carriers bundle wireless voice-over-IP services to their mobile wireless broadband offerings, they will be competing directly with the cellular operators. However, if the cellular operators can easily add wireless broadband to their infrastructure, they have a better chance of fending off this new competition. It also gives the operators a shot at being fixed broadband providers because the wireless broadband service a customer buys from, say, Verizon Wireless will work as well in the home or office as it does while the customer is mobile.
Another reason the Qualcomm acquisition of Flarion is important is that it provides serious competition to WiMAX, which has received the lion's share of the wireless broadband word-of-mouth up to this point. If anybody is wincing at this acquisition, it has been Intel, which has been acting as though it expects WiMAX to dominate just as Wi-Fi has. Now, that seems less likely.
Bottom line: This acquisition signals the direction of the cellular industry and, more important to users, the advent of an era of strong competition among access providers. Most mergers and acquisitions have an impact only on the companies involved and their shareholders. The biggest impact of this acquisition will be on users and, for the most part, I think that impact will be positive.
Posted by David Haskin at 09:12 AM / Permalink
Analysis: Qualcomm’s Acquisition of Flarion
Online staff -- Electronic News, 8/12/2005
http://www.reed-electronics.com/electronicnews/article/CA634589.html
Analysts at ABI Research have commented on Qualcomm’s decision to acquire Flarion Technologies and its Flash-Orthogonal Frequency Division Multiplex Access (OFDMA) intellectual property, saying that the $600 million move is one toward the broadband space.
“This acquisition is a clear signal that Qualcomm, despite its faith in the future evolution of its CDMA technology, wants to stake out some territory in mobile wireless broadband,” said the firm in a research note Thursday. “Though CDMA-based technologies such as EV-DO and UMTS/HSDPA have been touted as broadband wireless solutions, questions remain about their peak data rates, spectrum utilization, ability to handle IP and the triple play, and lastly their QoS capabilities.”
At the same time, ABI explained, there is industry consensus that OFDM with MIMO could be the technology of the future even for cellular.
The acquisition raised questions concerning wireless. WiMAX, an up-and-coming wireless connection method, is synonymous with broadband. Why didn't Qualcomm just buy a WiMAX IC or equipment company, rather than a company creating proprietary solutions? Alan Varghese, ABI Research's principal analyst of semiconductor research, believes it is because Qualcomm likes to stay on the unbeaten path.
"Just as they forged their own trail for cellular telephony with CDMA technology, Qualcomm may want to avoid the industry standard path of WiMAX where competition will be high, control limited, and price erosion rapid, and instead build their own path."
And, he added, "Even if productization of Flarion's technology slows down with the advent of WiMAX, Qualcomm can still realize revenue from royalties and licensing of Flarion's considerable IP in OFDM and all-IP traffic."
ABI Research's Philip Solis, senior analyst of wireless connectivity, agreed.
"We believe that Qualcomm's move is a longer-term step to equip itself with the right technologies to offer operators a wider range of choices when 4G services finally arrive. In addition, FLO technology, one of the leading contenders for mobile TV multicasting, is based on OFDM," Solis said in the statement
Qualcomm "overweight"The target price is set to $48.
Friday, August 12, 2005 6:17:05 AM ET
Prudential Financial
http://www.newratings.com/analyst_news/article_967492.html
NEW YORK, August 12 (newratings.com) - Analyst Inder M Singh of Prudential Financial maintains his "overweight" rating on Qualcomm Inc (QCOM.NAS). The target price is set to $48.
In a research note published yesterday, the analyst mentions that the company has announced the acquisition of Flarion Technologies for $600 million in cash and stock, as well as a future payment of $205 million dependent on the achievement of performance milestones. The deal, expected to close by end-CY05, offers Qualcomm access to the 4G wireless markets through Flarion's Flash-OFDM technology, the analyst adds. Qualcomm expects the acquisition to be dilutive to its FY06 EPS by approximately $0.03.
Qualcomm Could Get A Jump On '4G' Wireless Tech
Ed Lin, 08.12.05, 11:43 AM ET
http://www.forbes.com/markets/2005/08/12/qualcomm-wireless-acquisition-0811markets03.html?partner=ya....
Piper Jaffray said Flarion "will prove a strong strategic fit for Qualcomm (nasdaq: QCOM - news - people )."
Qualcomm said Thursday that it agreed to acquire Flarion of Bedminster, N.J., for about $600 million, and could pay an additional $205 million in milestone payments in the next few years. Flarion develops orthogonal frequency division multiplex access, or OFDMA, technology and is the inventor of Flash-OFDM technology for mobile broadband Internet protocol services.
Piper Jaffray said, "Not only do we believe Flarion boosts Qualcomm's technology roadmap post-3G, but we also believe Flarion's OFDM capabilities will help Qualcomm's upcoming launch of MediaFLO."
The acquisition adds to Qualcomm's overall IP offerings, but the research firm also views it as a defensive move "in that it helps Qualcomm bolster its OFDMA technology that could become the leading '4G' technology."
Piper Jaffray said that based on its checks, Qualcomm's current fiscal fourth quarter "is tracking well versus our estimates," and maintained an "outperform" rating on the company.