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InterDigital Appoints Senior Director of Corporate Development
KING OF PRUSSIA, Pa., Apr 1, 2003 (BUSINESS WIRE) -- InterDigital Communications Corporation (Nasdaq:IDCC), a leading architect, designer and provider of wireless technology and product platforms, today announced that Charlie Brogan has been named as Senior Director of Corporate Development.
In this newly created position, Mr. Brogan will lead the Company's strategic mergers and acquisitions activities. He will be responsible for coordinating the identification, evaluation and execution of acquisition opportunities that complement or extend InterDigital's technology and product offerings.
"I am pleased to appoint Charlie Brogan to the position of Senior Director of Corporate Development," said Rich Fagan, Chief Financial Officer of InterDigital. "With more than twenty years of senior level mergers and acquisitions experience, Charlie will lead InterDigital's corporate development activities at a time of positive momentum for the Company. By creating this position, the Company is accelerating its growth possibilities, enhancing its ability to penetrate new markets, providing InterDigital with access to a broader range of technologies and products to offer to its customers, and strengthening the Company's ability to increase shareholder value."
Mr. Brogan joined InterDigital in 2000 as Director of Business Analysis. He was appointed to Senior Director of Business Analysis in 2001. In this role he has been responsible for managing numerous aspects of the Company's financial operations and contributing to business development activities.
Prior to joining the Company, he served for seventeen years as Principal and President of Brandywine Capital, Ltd., an investment banking consulting firm based in Wilmington, Delaware. Mr. Brogan's experience also includes tenure as Chief Financial Officer of AmeriGas, an industrial gas/welding supply company, and as a partner in a leverage buyout group.
Mr. Brogan earned a Bachelor of Science degree in Chemical Engineering from Manhattan College and a Master's Degree in Business Administration from the University of Delaware. He is a Certified Public Accountant and member of the American Institute of Certified Public Accountants as well as the State CPA societies of Pennsylvania and Delaware.
Mr. Brogan also serves on the Investment Advisory Board for Ulster Project Delaware.
About InterDigital
InterDigital architects, designs and provides advanced wireless technologies and products that drive voice and data communications. The Company offers technology and product solutions for mainstream wireless applications that deliver cost and time-to-market advantages for its customers.
InterDigital has a strong portfolio of patented technologies covering 2G, 2.5G and 3G standards, which it licenses worldwide. For more information, please visit InterDigital's web site: www.interdigital.com. InterDigital is a registered trademark of InterDigital Communications Corporation.
CONTACT: InterDigital Communications Corporation
Media Contact:
Dawn Goldstein, 610/878-7800
e-mail: dawn.goldstein@interdigital.com
or
Investor Contact:
Janet Point, 610/878-7800
e-mail: janet.point@interdigital.com
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KEYWORD: PENNSYLVANIA
INDUSTRY KEYWORD: TELECOMMUNICATIONS
SOFTWARE
HARDWARE
BANKING
MANAGEMENT
CHANGES
SOURCE:
InterDigital
Communications
Corporation
goldberg is on bloomberg NOW!
IDCC CEO to Appear on Bloomberg TV @ 8:39 AM ET [delayed]
Ridgeland, MS, APR 02, 2003 (EventX/Knobias.com via COMTEX) -- According to the published guest list on the Bloomberg website, the CEO of Interdigital Communications Corp (NASDAQ NM : IDCC), Howard Goldberg, is scheduled to appear today on Bloomberg TV at 8:39 a.m. ET.
GET KNOBIAS IN REAL-TIME: Delivery of this proprietary Knobias alert has been delayed by 20 minutes. To get all Knobias alerts in real-time daily, visit http://www.knobias.com/cmtx
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SUBJECT CODE: Management Appearance
sjratty, I would be surprised if you did not sell, and buy back @ 17.
easymoney,
I just bought my measly (500) shares, I wish I could afford more.
TFWG, Thanks . eom
sjratty, Pre-market is looking good for IDCC.
Nokia Expands Footprint in China
Mar 31, 2003 (NewsFactor.com via COMTEX) -- Launching a major push into the Chinese wireless market, Nokia (NYSE: NOK) announced that it will begin manufacturing CDMA phones and combine its four joint ventures there, in an effort to solidify its position in an increasingly competitive region.
China is widely recognized as having the most short-term growth potential for handset manufacturers in a world of otherwise mature, replacement-driven markets. According to Nokia, there are some 215 million wireless subscribers in China, with the number expected to soar among a population of more than one billion people.
Creating a Wireless Giant
China is the Nokia's second largest market, behind only the U.S., Kari Twtti, a spokesperson for Nokia Mobile Phones, told NewsFactor. The mobile phone giant did about US$3 billion in business in China last year.
"The Chinese market is hugely important to us," Twtti said. Combining the four joint ventures will create the biggest manufacturer and exporter in the mobile telecom industry in China, he added.
The new company will be headquartered in Beijing and will produce CDMA handsets using Nokia chipsets, as well the GSM phones and wireless infrastructure equipment currently delivered by the individual firms for local markets. Nokia will be the major shareholder of the new company with 60 percent ownership.
Targeting Motorola
China Unicom, China's second-largest wireless carrier, is the only operator in that country that currently uses CDMA along with GSM.
Nokia, the world's largest phone manufacturer, trails Motorola (NYSE: MOT) in China mobile phone sales, with the U.S. company producing an estimated 50 percent of all its handsets in that country.
Nokia recognizes that China is the one major market that will show significant growth in the near future, said Aberdeen Group wireless technology analyst Isaac Ro. There is a lot of network build-out still to be done there, he told NewsFactor, which is the traditional point of entry into a market.
"With the infrastructure in place, Nokia can start selling its handsets, and while they have been weak in CDMA phones, they want to grow in that area," Ro said. But, he added, Motorola has a commanding lead in Chinese phone sales.
Local Commitment
Consolidating the four joint ventures in China should improve manufacturing efficiency for Nokia Networks and Mobile Phones and facilitate Nokia's entry into the rapidly growing Chinese CDMA market, Yankee Group analyst John Jackson told NewsFactor.
"More importantly, though, this move underscores the importance of communicating a long-term commitment to the local market," he noted.
Ro predicted that Nokia's move will be followed by similar initiatives by other wireless communications companies looking to capitalize on the lucrative market. "Although the per capita income is low, there is still a staggering number of potential customers therrs there, and it is easier to sell there than it is in a lot of other areas," he said.
By Jay Wrolstad URL: http://www.dell.com http://www.intel.com http://www.ati.com http://www.microsoft.com http://www.usb.org/ http://www.idc.com http://www.alienware.com http://www.solutionproviderdirect.com/introducing_002.htm?DGVCode=JP http://www.microsoft.com/windowsxp/default.asp http://www.hp.com http://www.dc.com http://www.motorola.com http://www.howstuffworks.com/flash-memory.htm http://www.ti.com http://www.nokia.com http://www.aberdeen.com/ http://www.yankeegroup.com
Copyright (C) 2003, NewsFactor Network. All rights reserved
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SUBSEQUENT EVENT
In March 2003, we entered into worldwide royalty-bearing license agreements with Telefonaktiebolaget LM Ericsson and Ericsson and Sony Ericsson for sales of terminal units and infrastructure products compliant with Second Generation (2G) GSM/TDMA and 2.5G GSM/GPRS/TDMA standards. These agreements resolved a patent infringement lawsuit with Ericsson that was scheduled for trial in May 2003.
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We also were granted an option for a Reference Design License and Support Agreement for Ericsson’s GSM/GPRS/UMTS Platform.
We are due to receive aggregate payments currently estimated to be approximately $34 million from Ericsson and Sony Ericsson related to sales of terminal and infrastructure products through December 31, 2002. These payments are due over four quarters, commencing in the second quarter 2003, including approximately $16 million in 2003. We will recognize the aggregate expected payments as other income in the first quarter 2003.
For the period January 1, 2003 through December 31, 2006, Sony Ericsson will be obligated to pay us a royalty on each licensed product sold. In return for advance royalty payments covering projected sales of covered products for discreet twenty-four month periods, Sony Ericsson will receive certain prepayment discounts and credits. The initial advance royalty payments for the first twenty-four month period are mandatory and Sony Ericsson is obligated to make these payments in the second and third quarters of 2003. Once the initial prepayments are exhausted, Sony Ericsson would have the option to make additional advance royalty payments (net of related prepayment discounts and any applicable credits) or, pay royalties on an ongoing basis at undiscounted base royalty rates. The advance royalty payments will be recorded as deferred revenue and recognized as revenue in the periods in which Sony Ericsson exhausts such prepayments through the sale of covered product.
Ericsson also is obligated to pay us an annual license fee of $6 million per year for sales of covered infrastructure products for each of the years 2003 through 2006. The annual license fee will be recognized as revenue on a straight-line basis each year.
We believe the license agreements with Ericsson and Sony Ericsson establish the financial terms necessary to define the royalty obligations of Nokia and Samsung on sales of 2G GSM/TDMA and 2.5G GSM/GPRS/TDMA products under their existing agreements with us. Under the MFL provision applicable to their respective patent licenses, we believe both companies are obligated to pay royalties to us on sales of covered products from January 1, 2002 by reference to the terms of the Ericsson and Sony Ericsson licenses. The MFL terms include provisions for a period of review, negotiation, and dispute resolution with regard to the determination of the royalty obligations of both Nokia and Samsung.
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We will not record revenue associated with the Nokia and Samsung license agreements until all elements required for revenue recognition are met.
LITIGATION
Ericsson
In March 2003, we entered into an agreement with Ericsson to settle a longstanding patent infringement lawsuit between us. In connection with the settlement, we entered into worldwide royalty-bearing license agreements with Telefonaktiebolaget LM Ericsson and Ericsson and Sony Ericsson for sales of terminal units and infrastructure products compliant with Second Generation (2G) GSM/TDMA and 2.5G GSM/GPRS/TDMA standards. These agreements are described in greater detail in Note 14 “Subsequent Event” below.
As part of the settlement of the litigation, the parties requested, and the Court signed, a Stipulation and Order of Dismissal dismissing the case with prejudice.
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Samsung
In February 2002, we filed a Complaint against Samsung Electronics Co. Ltd. (Samsung) with the International Chamber of Commerce (ICC), International Court of Arbitration. The dispute involved the applicability of the Most Favored Licensee (MFL) clause contained in our patent license agreement with Samsung and Samsung’s alleged underreporting of, failure to report, and failure to pay royalties on its more recent covered sales. MFL clauses typically permit a licensee to elect to apply the terms of a subsequently executed license agreement that are more favorable than those of the licensee’s agreement. In particular, the dispute related to the manner in which our patent license agreement with Nokia should apply to Samsung under Samsung’s MFL rights included in its 1996 patent license agreement with us. The dispute dealt with specific contractual terms in the Samsung patent license agreement and did not involve any issue of validity or infringement of our patents.
In December 2002, the ICC rendered a decision, under which, Samsung’s MFL rights were applied retroactively until January 29, 1999, the date of the Nokia patent license agreement. The ICC decision also determined Samsung’s royalty obligation on sales of licensed TDMA products for the period commencing January 29, 1999 through December 31, 2001 to be approximately $4.4 million, reducing Samsung’s prior royalty credit of $18.7 million ($11.5 million of which had previously been recognized as revenue by the Company) to $6.7 million. As a result of the ICC decision, we recognized approximately $0.5 million of revenue in the fourth quarter 2002 related to Samsung’s royalty obligations through December 31, 2001.
Also, pursuant to Samsung’s election regarding the Nokia patent license agreement under its MFL rights, Samsung’s royalty obligations (against which the $6.7 million credit would apply) for sales of 2G and 2.5G TDMA wireless communications products commencing January 1, 2002 will be determined in accordance with the terms of the Nokia patent license agreement, including its MFL provision. By reference to the Nokia patent license agreement, Samsung’s royalty obligations for sales of 2G and 2.5G TDMA wireless communications products commencing January 1, 2002 will be defined by the relevant licensing terms between us and Ericsson and us and Sony Ericsson.
Other
We are a party to legal actions arising in the ordinary course of our business. Based upon information presently available to us, we believe that the ultimate outcome of these other actions will not have a material effect on our results of operations or financial condition.
SIGNIFICANT AGREEMENTS
In addition to the following significant agreements, in March 2003, we entered into worldwide royalty-bearing license agreements with Telefonaktiebolaget LM Ericsson and Ericsson Inc. (Ericsson) and Sony Ericsson Mobile Communications AB (Sony Ericsson) for sales of terminal units and infrastructure products compliant with 2G GSM/TDMA and 2.5G GSM/GPRS/TDMA standards. These agreements are described in greater detail in Note 14 “Subsequent Event” below.
NEC
In 2002, we entered into a worldwide royalty-bearing license agreement (3G Agreement) with NEC Corporation (NEC) for sales of wireless products compliant with all 3G and narrowband CDMA standards. We also concurrently reached an amicable settlement of a Second Generation (2G) patent licensing dispute (2G Dispute) with NEC in connection with a 1995 2G patent license agreement (2G Agreement).
In connection with the 3G Agreement, we received a non-refundable advance royalty of $19.5 million in April 2002 and recognized revenue of approximately $18.3 million related to that advance royalty in 2002. We will continue to recognize additional revenue as licensed products are sold. Once the initial advance is exhausted, NEC will be obligated to pay us additional royalties as it sells licensed products. We will continue to recognize additional revenue if and as products covered under the 3G Agreement are sold.
In connection with the settlement of the 2G Dispute, we received $13.25 million in April 2002, as the first of four equal nonrefundable installments totaling $53 million. The second installment was received in January 2003. The remaining two installments are payable in the second and fourth quarters of 2003. In connection with the $53 million settlement, we are recognizing revenue on a straight-line basis from the January 2002 agreement date until February 2006, which is the expected period of use by NEC. In 2002, we recognized approximately $12.3 million of revenue related to this settlement. At December 31, 2002, our balance sheet included $39.8 million in accounts receivable due under the 1995 Agreement. Our deferred revenue balance contained approximately $40.7 million related to these receivables and the $13.25 million in cash previously collected under this agreement.
Tantivy
In 2002, we acquired global patent rights associated with mobile wireless technology from Tantivy Communications, Inc. (Tantivy). These rights include an exclusive license (subject to certain rights retained by Tantivy), with the right to sublicense, under a number of Tantivy’s patents applicable to, among other products, CDMA2000 products manufactured, used or sold in the United States and other countries where Tantivy’s patents have been filed. These rights also include a non-exclusive license under Tantivy’s smart antenna patents, generally, to manufacture and sell TDD products. We are obligated to pay Tantivy a minimum, of $1.5 million, plus a share of patent license royalties collected on CDMA2000 product sales from newly entered into agreements that, in effect, include a sub-license under Tantivy’s patents. In addition, we expect to incur costs in connection with the prosecution of certain of the patent rights. The $1.5 million minimum will secure our rights under the agreement for an initial period (Initial Period) of three years and is to be paid in three installments. Payments of $1.05 million were made in 2002 and an additional installment of $0.45 million was paid in the first quarter 2003. Our maximum payment obligation to Tantivy associated with the sublicenses entered into during the
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Initial Period, inclusive of the $1.5 million, is $19.0 million. The $1.5 million has been capitalized as a patent cost and is being amortized over the initial three-year period. Commencing in 2005, certain adjustments to the maximum amount payable, alone or in combination with additional installments, are required to be made in order to maintain certain of the patent rights under the agreement beyond the Initial Period. Our maximum payment obligation to Tantivy for all license rights received under the agreement, inclusive of the $1.5 million, is $24.0 million. Should we choose not to maintain our rights, previously entered into sublicenses with third parties shall not be affected.
By separate agreement in 2002, we obtained the right to market the licensing of Tantivy’s smart antenna technology and patents for certain 2G and 3G products in Japan, China, Korea and Taiwan. We expect to market Tantivy’s smart antenna patents and technology in connection with our patent licensing activities. With respect to certain agreements arranged by us on Tantivy’s behalf that are entered concurrently with new InterDigital licenses to the same party, Tantivy could be entitled either to a pre-determined lump sum amount and/or an amount equivalent to a percentage of patent license royalties collected by us on 2G CDMA product sales under such transactions. With respect to certain other agreements arranged by us on Tantivy’s behalf, we would be entitled to a commission for arranging the transaction.
Matsushita
In 2001, we entered into a worldwide royalty-bearing license agreement with Matsushita Communications Industrial Co., Ltd. (Matsushita) of Japan under our patent portfolio for Matsushita to manufacture, sell, and distribute 3G products. We received a non-refundable advance royalty payment of $19.5 million related to this agreement that will be recognized as revenue when Matsushita sells covered product. No revenue was recognized under this agreement in 2002 or 2001.
Sharp
In 2001, we entered into a worldwide royalty-bearing license agreement with Sharp Corporation (Sharp) under our patent portfolio for Sharp to manufacture, sell, and distribute GSM, narrowband CDMA and 3G products. We received a nonrefundable advance royalty payment of $11.1 million related to these agreements that is being recognized as Sharp sells covered product. We recognized revenue of approximately $2.7 million against that advance in 2002. No revenue was recognized under this agreement in 2001.
We are currently in negotiations with Sharp to renew a patent license covering sales of PHS and PDC products that expired in the first quarter 2003.
Nokia
In February 1999, we entered into a multi-year arrangement with Nokia Corporation (Nokia) for development of new technology for 3G wireless telecommunications products. Under the multi-year arrangement, we are providing specialized engineering services and technology and know-how development and we will retain ownership rights of all of the technology we develop thereunder. Additionally, in February 1999, we entered into a patent license agreement with Nokia related to our TDMA and CDMA patents. In the third quarter of 2001, Nokia and the Company amended the agreement by refining the pace and scope of the development arrangement and Nokia committed to increase funding to a maximum of approximately $58 million, up from the original estimate of $40 million. We will be responsible for costs not covered by the maximum funding amount. This modification was treated as a new contract for accounting purposes and as a result, we changed the method of reporting revenue related to the remainder of the program to the percentage-of-completion accounting basis. Prior to the change, revenue had been reported on a time and materials basis and we had billed Nokia approximately $46 million under the contract, leaving approximately $12 million of revenue to be recognized on the percentage of completion basis. Of the $12 million, approximately $4.6 million and $6.2 million were
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recognized in 2002 and 2001, respectively. During 2002, we accrued a loss of $1.2 million on the modified contract based on our estimates of cost to complete the contract. The final $1.0 million payment associated with this contract will be withheld until final delivery of the remaining technology required under the agreement has been made. We currently expect final delivery to occur in the second half of 2003 and will defer the recognition of the final $1.0 million of specialized engineering services revenue associated with the agreement until that time. For the years ended December 31, 2002, 2001 and 2000, we recognized specialized engineering service revenue related to this development arrangement of $4.6 million, $21.8 million, and $17.2 million, respectively.
RECENT SIGNIFICANT TRANSACTION
In March 2003, we entered into worldwide royalty-bearing license agreements with Telefonaktiebolaget LM Ericsson and Ericsson Inc. (Ericsson) and Sony Ericsson Mobile Communications AB (Sony Ericsson) for sales of terminal units and infrastructure products compliant with Second Generation (2G) GSM/TDMA and 2.5G GSM/GPRS/TDMA standards. These agreements resolved a patent infringement lawsuit with Ericsson that was scheduled for trial in May 2003. We also were granted an option for a Reference Design License and Support Agreement for Ericsson’s GSM/GPRS/UMTS Platform.
We expect to receive aggregate payments currently estimated to be approximately $34 million from Ericsson and Sony Ericsson related to sales of terminal and infrastructure products through December 31, 2002. These payments should be received over four quarters, commencing in the second quarter 2003. We expect to receive approximately $16 million of the $34 million in 2003. We will recognize the total expected payments as other income in the first quarter 2003.
For the period January 1, 2003 through December 31, 2006, Sony Ericsson will be obligated to pay us a royalty on each licensed product sold. In return for advance royalty payments covering projected sales of covered products for discreet twenty-four month periods, Sony Ericsson will receive certain prepayment discounts and credits. The initial advance royalty payments for the first twenty-four month period are mandatory and Sony Ericsson is obligated to make these payments in the second and third quarters of 2003. Based on currently available third party projections of Sony Ericsson’s sales of covered products and certain assumptions by the Company regarding such items as Sony Ericsson’s sales, sales mix, and selling prices, we estimate that the total prepayments for the first twenty-four month period could be in the range of $20 million to $25 million. Once the initial prepayments are exhausted, Sony Ericsson would have the option to make additional advance royalty payments (net of related prepayment discounts and any applicable credits) or, pay royalties on an ongoing basis at undiscounted base royalty rates. The advance royalty payments will be recorded as deferred revenue and recognized as revenue in the periods in which Sony Ericsson exhausts such prepayments through the sale of covered product.
Ericsson also is obligated to pay us an annual license fee of $6 million per year for sales of covered infrastructure products for each of the years 2003 through 2006. The annual license fee will be recognized as revenue on a straight-line basis each year.
We expect that a portion (less than 10%) of amounts to be paid by Ericsson and Sony Ericsson will be used by us to satisfy an insurance reimbursement obligation.
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The license agreements with Ericsson and Sony Ericsson establish the financial terms necessary to define the royalty obligations of Nokia Corporation (Nokia) and Samsung Electronics Co. Ltd. (Samsung) on sales of 2G GSM/TDMA and 2.5G GSM/GPRS/TDMA products under their existing agreements with us. Under the most favored licensee (MFL) provision applicable to their respective patent licenses, both companies are obligated to pay royalties to us on sales of covered products from January 1, 2002 by reference to the terms of the Ericsson and Sony Ericsson licenses. The MFL terms include provisions for a period of review, negotiation, and dispute resolution with regard to the determination of the royalty obligations of both Nokia and Samsung. Based on the Company’s application of the MFL provision, currently available third party estimates of Nokia’s and Samsung’s sales of covered products in 2002, and the Company’s assumptions regarding such items as Nokia’s and Samsung’s sales mix, selling prices, and market share, the Company projects that Nokia’s royalty obligation for 2002 could be in the range of $100 million to $120 million and Samsung’s royalty obligation for 2002 could be in the range of $22 million to $27 million. Further, based on the application of the MFL provision and assumptions noted above, recent market forecasts, and the advance payment of royalties (net of related discounts and any applicable credits) consistent with the terms of the Ericsson and Sony Ericsson agreements, the Company projects that 2003 royalty revenue from Nokia could be in the range of $80 million to $90 million, 2003 royalty revenue from Samsung could be in the range of $20 million to $24 million, and the aggregate advance royalty payments from Nokia and Samsung for 2003 and 2004 could be in the range of $180 million to $220 million. Once these initial prepayments are exhausted, Nokia and Samsung can either make additional advance royalty payments (net of related discounts and any applicable credits) for discreet twenty-four month periods, or pay royalties at undiscounted base royalty rates on sales through 2006. The Company will not record revenue associated with the Nokia and Samsung license agreements until all elements required for revenue recognition are met.
Ericsson
On March 14, 2003, ITC and Ericsson Inc. entered into an agreement to settle their longstanding patent infringement lawsuit. In connection with the settlement, ITC entered into worldwide, royalty-bearing license agreements with Telefonaktiebolaget LM Ericsson and Ericsson Inc. (Ericsson) and Sony Ericsson Mobile Communications AB (Sony Ericsson) for sales of terminal units and infrastructure products compliant with the following standards: TIA/EIA 54/136, GSM, GPRS, EDGE, PDC, PHS, and additionally with respect to covered terminal units only, all other TDMA standards. Under these agreements, ITC expects to be paid approximately $34 million from Ericsson and Sony Ericsson related to sales of terminal and infrastructure products through December 31, 2002. For periods thereafter through 2006, Sony Ericsson will be obligated to pay ITC a royalty on each licensed product sold. In addition, Sony Ericsson will make non-refundable advance royalty payments to ITC in 2003 covering Sony Ericsson’s projected sales in 2003 and 2004. The Company estimates, based on currently available third party projections of Sony Ericsson’s sales of covered products and certain assumptions by the Company regarding such items as Sony Ericsson’s sales, sales mix, and selling prices, that Sony Ericsson’s prepayment to ITC for projected sales in 2003 and 2004 could approximate $20 million to $25 million after giving effect to certain royalty rate discounts. Once this initial prepayment is exhausted, Sony Ericsson can either make additional prepayments (net of related discounts and any applicable credits) for twenty-four month periods, or pay royalties at the base rate on sales through 2006. Consistent with the terms of the license agreements, the above projections are net amounts after giving effect to applicable source withholding taxes paid on behalf of the Company by the licensees, but prior to consideration of U.S. Federal, state, and local taxes where applicable. Ericsson is obligated to pay ITC an annual license fee of $6 million for sales of covered infrastructure equipment for each of the years 2003 through 2006. In connection with the settlement, we were also granted an option for a Reference Design License and Support Agreement for Ericsson’s GSM/GPRS/UMTS Platform.
As part of the settlement of the litigation, the parties requested, and the Court signed, a Stipulation and Order of Dismissal dismissing the case with prejudice.
Samsung
In February 2002, the Company’s wholly-owned subsidiary InterDigital Technology Corporation (ITC) filed a Complaint against Samsung with the International Chamber of Commerce (ICC), International Court of Arbitration. The dispute involved the applicability of the MFL clause contained in ITC’s patent license agreement with Samsung and Samsung’s alleged underreporting of, failure to report, and failure to pay royalties on its more recent covered sales. MFL clauses typically permit a licensee to elect to apply the terms of a subsequently executed license agreement that are more favorable than those of the licensee’s agreement. In particular, the dispute related to the manner in which ITC’s patent license agreement with Nokia should apply to Samsung under Samsung’s MFL rights included in its 1996 patent license agreement with ITC.
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The dispute dealt with specific contractual terms in the Samsung patent license agreement and did not involve any issue of validity or infringement of ITC’s patents.
An evidentiary hearing was held during the third quarter of 2002. In December 2002, the ICC rendered a decision, under which, Samsung’s MFL rights were applied retroactively until January 29, 1999, the date of the Nokia patent license agreement. The ICC decision also determined Samsung’s royalty obligation on sales of licensed TDMA products for the period commencing January 29, 1999 through December 31, 2001, to be approximately $4.4 million, reducing Samsung’s prior royalty credit of $18.7 million ($11.5 million of which had previously been recognized as revenue by the Company) to $6.7 million. As a result of the ICC decision, we recognized approximately $0.5 million of revenue in the fourth quarter 2002 related to Samsung’s royalty obligations through December 31, 2001.
Also, pursuant to Samsung’s election regarding the Nokia patent license agreement under its MFL rights, Samsung’s royalty obligations (against which the $6.7 million credit would apply) for sales of 2G and 2.5G TDMA wireless communications products commencing January 1, 2002 will be determined in accordance with the terms of the Nokia patent license agreement, including its MFL provision. By reference to the Nokia patent license agreement, Samsung’s royalty obligations for sales of 2G and 2.5G TDMA wireless communications products commencing January 1, 2002 will be defined by the relevant licensing terms between ITC and Ericsson and ITC and Sony Ericsson.
Other
ITC has filed patent applications in numerous foreign countries. In the ordinary course of business, ITC currently is, and expects from time to time to be, subject to challenges with respect to its patents and patent applications in foreign countries. ITC intends to vigorously defend its patents. However, if any of ITC’s patents or applications are revoked, ITC’s patent licensing opportunities in the relevant foreign countries, and possibly in other countries, could be materially and adversely affected.
In addition to litigation associated with patent enforcement and licensing activities and the litigation described above, we are a party to other legal actions also arising in the ordinary course of our business. Based upon information presently available to us, we believe that the ultimate outcome of these other actions will not materially affect us.
Licenses
At December 31, 2002, ITC had granted to 28 licensees a total of 31 non-exclusive, generally non-transferable, royalty-bearing or paid-up licenses to use its patents covering 2G and/or 3G standards. These include, 18 licenses relating only to TDMA patents, 2 licenses relating only to 2G CDMA patents, 2 licenses relating to 2G CDMA and TDMA patents, 6 licenses relating to both 2G and 3G patents, 3 licenses relating to narrowband CDMA (TIA/EIA 95 and similar standards) and 3G and 1 relating to 3G patents only. In 2002, 2001, and 2000, respectively, 94%, 50% and 51% of our total revenue was derived from licensees in Japan. Revenues in 2002 from our Japanese licensees NEC Corporation (NEC) and Sharp Corporation (Sharp) were approximately 35% and 30%, respectively. Revenue from Denso Corporation, a Japanese licensee, relating to the discontinuation of their PDC and PHS businesses, constituted approximately 11% of our 2002 revenues.
Our license agreements are structured on a paid-up, prepaid, or current royalty-bearing basis, or a combination thereof. Prepayments are generally made as advances against payment of future royalties, and are non-refundable. As sales of covered products occur, the royalties due are calculated and either applied against any prepayment, or paid in cash. Sometimes, the royalties due are applied in full against the prepayment while other times they are applied in partial satisfaction (e.g., 40%). In the latter case, a royalty would be due for the remaining amount not applied against the prepayment (e.g., 60%). Additionally, royalties on sales of covered products under the license agreement are payable or exhausted against prepayments based on the royalty formula applicable to the particular license agreement. These formulas include flat dollar rates per unit, percentage of sales, percentage of sales with caps, and other similar measures. The formulas can also vary by other factors including territory, covered standards, quantity, and dates sold. Most of our license agreements provide for the payment of royalties on a convenience basis, where they are payable on all covered products built to a particular standard, although a few provide for payment on an infringement basis, where they are generally only payable when there is a patent issued in the applicable geographic region which the licensee’s covered products infringe. Revenues generated from royalties are subject to quarterly and annual fluctuations. Certain of our licenses are paid-up, and do not require the payment of further royalties, either in whole or in part. For example, with certain limitations, Siemens AG (Siemens) is paid-up under certain of ITC’s patents for 2G and 3G products, NEC is paid-up for PDC and PHS products, Nokia is paid-up for TDD products based upon the scope of technology delivered under the funded development plan, and Matsushita Electric is paid-up for TDMA-based 2 and 2.5G products.
ITC’s initial patent license agreement with Sharp was royalty-bearing, non-exclusive, and generally nontransferable. It covered Sharp’s sale of PDC and PHS products on a world-wide basis through March 19, 2003, at which time it expired. ITC and Sharp are currently engaged in negotiations to extend the term of this agreement. ITC’s other agreement with Sharp covers Sharp’s sale of GSM, narrowband CDMA and 3G products on a worldwide basis. This patent license agreement is royalty-bearing, non-exclusive, generally nontransferable, and expires upon the last to expire of the patents licensed under the agreement. The enforceability of the GSM, narrowband CDMA and 3G license agreement is not linked to the enforceability of the initial license agreement and, as such, has not been affected by the
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expiration of the initial license agreement. Almost all of our 2002 revenues attributable to Sharp have been generated under the PDC and PHS patent license agreement. The inability to extend this patent license will adversely affect our cash flow and could affect our ability to achieve or sustain acceptable levels of profitability.
Expenditures relating to maintaining our current licenses (other than enforcement proceedings) are minimal, being predominantly administrative in nature. Revenues are used for general corporate purposes.
We are in active discussions with companies on a worldwide basis regarding the licensing of our 2G, 2.5G and 3G-related patents.
In 2002, ITC entered into worldwide, royalty-bearing narrowband CDMA and 3G patent licenses with NEC, Japan Radio Corporation (JRC) and Tantivy. Under its agreement, NEC paid $19.5 million in advance royalties in 2002. Upon the exhaustion of the applicable prepayment, NEC is obligated to pay royalties on a convenience basis on all sales of products covered under the license. This patent license agreement is non-exclusive, worldwide, generally non-transferable, and expires upon the last to expire of the patents licensed under the agreement. The loss of revenues and cash payments under this license agreement would adversely affect our cash flow and results of operations and could affect our ability to achieve or sustain acceptable levels of profitability. Also in 2002, ITC entered into a worldwide, royalty-bearing 2G and 3G patent license with Hop-On Wireless, Inc.
In March 2003, we entered into a worldwide, royalty-bearing, convenience-based (2G) GSM/TDMA and 2.5G GSM/GPRS/TDMA patent license agreements with Telefonaktiebolaget LM Ericsson and Ericsson Inc. (Ericsson), and a worldwide, royalty-bearing, convenience-based (2G) GSM/TDMA and 2.5G GSM/GPRS/TDMA patent license agreement with Sony Ericsson Mobile Communications AB (Sony Ericsson). With the execution of these agreements, ITC has now licensed manufacturers representing approximately 70% of the worldwide 2G GSM/TDMA and 2.5G GSM/GPRS/TDMA terminal market, and approximately 50% of the infrastructure market. Under the terms of these license agreements ITC expects to receive aggregate payments of approximately $34 million from Ericsson and Sony Ericsson related to sales of terminal and infrastructure products through December 31, 2002. For periods thereafter through 2006, Sony Ericsson is obligated under the terms of its agreement to pay ITC a royalty on each licensed product sold. In addition, Sony Ericsson is obligated to make non-refundable advance royalty payments to ITC in 2003 covering Sony Ericsson’s projected sales in 2003 and 2004. In exchange for such prepayments, the Company estimates, based on currently available third party projections of Sony Ericsson’s sales of covered products and certain assumptions by the Company regarding such items as Sony Ericsson’s sales, sales mix, and selling prices, that Sony Ericsson’s prepayment to ITC for projected sales in 2003 and 2004 could approximate $20 million to $25 million giving effect to certain royalty rate discounts. Once this initial prepayment is exhausted, Sony Ericsson can either make additional prepayments (net of related discounts and any applicable credits) for 24-month periods or pay royalties at the base rate on sales through 2006. Consistent with the terms of the agreements, the above projections are net amounts after giving effect to applicable source withholding taxes paid on behalf of the Company by the licensees, but prior to consideration of U.S. Federal, state, and local taxes where applicable. Under the terms of its agreement, Ericsson is obligated to pay ITC an annual license fee of $6 million for sales of covered infrastructure equipment for each of the years 2003 through 2006. These license agreements expire upon the last to expire of the patents licensed under each agreement.
The license agreements with Ericsson and Sony Ericsson establish the financial terms necessary to define the royalty obligations of Nokia and Samsung Electronics Co. Ltd. (Samsung) on 2G GSM/TDMA and 2.5G GSM/GPRS/TDMA infrastructure and terminal units under their existing patent licensing agreements with ITC. Under the most favored licensee (MFL) provision applicable to their respective patent licenses, both companies are obligated to pay royalties on sales of covered products from January 1, 2002 by reference to the terms of the Ericsson and Sony Ericsson licenses. Our patent license agreement with Nokia, provides that, in exchange for a payment of $31.5 million, Nokia’s royalty obligation to ITC had been paid-up generally with respect to certain 2G and certain 3G covered products through the end of 2001. The MFL provision in this agreement provides that Nokia’s royalty obligations will be defined by and subject to specified risks and uncertainties of the relevant licensing terms applicable to other designated leading manufacturers of wireless telecommunications equipment. Ericsson and Sony Ericsson constitute such leading manufacturers under Nokia’s agreement. The Ericsson and Sony Ericsson license agreements apply to 2G GSM/TDMA and 2.5G GSM/GPRS/TDMA infrastructure and terminal unit products. Accordingly, one or more additional agreements with a designated leading manufacturer will be necessary, in the absence of agreement between ITC and Nokia, to fully define the full scope of Nokia’s obligations under its patent license agreement. The starting point for calculating Nokia’s royalty obligation will be January 1, 2002. In addition, Samsung elected to apply its MFL provision to ITC’s patent license agreement with Nokia as regards Samsung’s 2G and 2.5G TDMA-based products. Therefore, beginning in 2002 Samsung’s royalty rate should be determined in the same manner as Nokia’s royalty rate is determined. There is no assurance that either Nokia or Samsung will agree with ITC as to the applicability of the licensing terms between ITC and Ericsson and Sony Ericsson. The MFL terms include provisions for a period of review, negotiation, and dispute resolution with regard to the determination of royalty obligations of Nokia and Samsung.
In addition to our royalty-bearing 3G licenses, some of our older license agreements include selected rights as to 3G products. For example, our license agreements with Nokia, Siemens and Qualcomm, Inc. (Qualcomm) include a license under certain of our patents to manufacture and sell products compliant with 3G standards, with some limitations. Patents for 3G standards are licensed to Nokia as follows: The Nokia license arrangement was paid-up, generally, with respect to a number of 2G and a number of 3G covered products through the end of 2001 with a structure for determining the royalties thereafter. In addition, as part of our development project with Nokia (See, “Business Activities, Technology and Product Development”), Nokia is licensed on a perpetual, royalty-free basis under patents developed in the project. Generally, Nokia is also licensed on the same basis with respect to patents technically necessary to implement TDD technology; however, such license does not extend to non-TDD functionality. The Siemens and Qualcomm license agreements are fully paid-up with regard to the rights granted, which include selected rights as to 3G products. The Siemens agreement does not include any rights under patents issuing from patent applications filed after December 15, 1999. The Qualcomm agreement excludes, among other things, any rights under our patents as regards TDMA standards, any rights under our patent applications filed after March 7, 1995, as well as any rights to any patents relating to cellular overlay and interference cancellation. Based on these limitations, the Siemens and the Qualcomm agreements do not provide a license under all the ITC patents or IPR Holdings Patents which we believe to be essential to 3G, including CDMA 2000, or all of the inventions which we believe will be essential and which are contained in pending patent applications. The Qualcomm license agreement grants Qualcomm the paid-up right to grant sub-licenses under designated ITC patent and patent applications to Qualcomm’s customers. For some of the ITC patents, Qualcomm’s sublicensing rights are limited to those situations where Qualcomm is selling ASICs to the customer. For a limited number of patents as to which applications were filed prior to March 8, 1995, Qualcomm may grant licenses under such ITC patents regardless of whether the customer is also purchasing an ASIC from Qualcomm.
Morpho Technologies Delivers Software Programmable WCDMA Chip-Rate
DALLAS, Texas, Mar 31, 2003 (BUSINESS WIRE) -- Morpho Technologies successfully demonstrated and delivered the MS1-16 reconfigurable Digital Signal Processor (rDSP) in 0.13micron CMOS to Motorola -- Semiconductor Products Sector, a global leader in providing integrated communications solutions.
Morpho Technologies will exhibit and demonstrate at the GSPx & International Signal Processing Conference, March 31 through April 3. The Morpho Technologies' MS1-16 rDSP provides a software programmable SoC core for implementation of the chip-rate processing portion of WCDMA for infrastructure applications.
The MS1-16 rDSP combines a unique group of hardware and software capabilities enabling customers to have a completely programmable WCDMA baseband processing solution.
The MS1-16 rDSP Core, now available in test silicon, meets the needs of both current and emerging wireless demands for base stations by allowing customers to rapidly develop and launch new products featuring the latest algorithms supporting 2G, 2.5G, and 3G standards. Morpho Technologies' fully software programmable solution provides a platform that allows infrastructure chipset and equipment manufacturers to remotely deploy upgrades as standards evolve and new software becomes available.
The MS1-16 rDSP Core joins the previously released MS1-64 rDSP Core, both of which are currently available to customers as soft IP cores as well as functioning in silicon within the Morpho Technologies Development Systems. The MS1 rDSPs are multiple element processing arrays designed to provide processing capacity required by infrastructure and portable designs that implement multiple data processing applications. Example applications include WCDMA/CDMA, GSM/GPRS/EDGE, 802.11, GPS, MPEG, JPEG, voice, and audio.
As applications evolve, off-chip software modifications eliminate the need for new ASIC devices. The result is a significant reduction in design time as well as a risk reduction in making chips. With the new technologies from Morpho Technologies, portable device and infrastructure manufacturers can build products and know they can easily be upgraded and modified, even if it has to sit in inventory for a while.
"The MS1 rDSP supports the rapid implementation of applications as well as the on-the-fly switching between applications," commented Todd Nash, Vice President, Business Development, Morpho Technologies. "For example, the MS1 allows for the dynamic switching between data and voice channel processing for infrastructure systems without the need for separate signal processing paths in silicon, thereby significantly reducing silicon area, cost, and power consumption."
About Morpho Technologies
Morpho Technologies is a designer and developer of high-performance, reconfigurable Digital Signal Processor cores and a pioneer in Software Defined Radio (SDR) technology. For more information on Morpho Technologies contact Todd Nash at tnash@morphotech.com or call 949/475-0629 or visit www.morphotech.com.
Morpho Technologies...redefining the Digital Signal Processor
CONTACT: Morpho Technologies, Irvine
Todd Nash, 949/475-0626
Fax: 949/475-0421
E-mail: info@morphotech.com
www.morphotech.com
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AUTOMOTIVE
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Technologies
SAMSUNG ELECTRONICS: Samsung Electronics mass produces new multi-chip
Seoul, Korea, Mar 31, 2003 (M2 PRESSWIRE via COMTEX) -- Samsung Electronics Co., Ltd., the world`s leader in advanced semiconductor memory technology, today announced mass production of a four-chip Multi-Chip Package (MCP) for mobile handsets. The company also announced a new integrated software system that greatly reduces the development time of MCP, System in Package (SiP) and System on Chip (SoC) designs by enabling simultaneous design of semiconductor circuits and packages.
"The fast-growing data processing and storage needs of camera and multimedia functions in 2.5 and 3G mobile phones require not just more memory bits and bytes, but increasingly sophisticated advanced memory systems," explained Tae-Sung Jung, vice president of Memory Product Planning & Application Engineering Team, Samsung Electronics. "With our strong memory portfolio and with the introduction of our innovative design programme, Samsung leads the industry in providing MCP solutions that support our customer`s diverse needs as well as their ability to get designs to market quickly."
Samsung`s MCP stacks four chips in the space of a single chip, reducing the footprint by 50%. The MCP is 1.4mm in height, which is 0.2mm greater than a conventional component of 1.2mm. The MCP resolves wiring and resistance problems that occur due to the lack of space and the increasing number of devices in mobile devices. Additionally, the MCP enhances the electrical characteristics of each component as well as the performance of the product.
Samsung`s MCP can employ various memory products for mobile solutions: SDRAM, SRAM, UtRAM, and NAND/NOR Flash memory. The new four-chip MCP is available in two combinations:
-- A NOR Flash based combination [part number RRNU6412864] consists of two 64Mbit NOR Flash memories, a 128Mbit NAND Flash memory and a 64Mb UtRAM.
-- A NAND Flash based MCP [part number NUUS128643208] consists of a 128Mbit NAND Flash memory, a 64Mbit UtRAM, a 32Mbit UtRAM and an 8Mbit SRAM.
Samsung expects the MCP market to reach US$2.9billion in 2003 and continue to grow to US$4.0billion in 2004 and US$ 5.2billion by 2005.
New Package Design Programme
Samsung`s new software reduces time-to-market and supports diverse customer needs more quickly by allowing design and verification of the IC and the package to proceed in parallel instead of in serial steps. As a result, the overall development time of multi-functional devices such as the MCP, SiP and SoC has been reduced dramatically.
The new package design software allows designers to evaluate different choices of both electrical characteristics and physical implementation for a design even when the package specification is set at an initial stage of the IC/ package design process. It also provides a built-in connectivity verification feature between different design domains such as package and IC.
"Samsung Electronics will use the new software programme to break into and secure a leadership position in this market," said Jeong-Taek Kong, vice president of CAE Team, Samsung Electronics. "We expect this development will have a major spillover effect into other market segments in the future."
About Samsung Electronics
Samsung Electronics Co., Ltd. Is a global leader in semiconductor, telecommunication, and digital convergence technology. Samsung Electronics employs approximately 70,000 people in 87 offices in 47 countries. Samsung Electronics is the world`s leading producer of advanced semiconductors, TFT-LCDs, CDMA mobile phones, monitors and VCRs. Samsung Electronics consists of four main business units: Device Solution Network, Digital Media Network, Telecommunication Network and Digital Appliance Network Businesses.
The Device Solution Network specializes in semiconductor and TFT LCD display products for industrial, mobile and advanced computing applications, offering a full line of key solutions of DRAMs, SRAMs, Display Driver Ics, Smart Card Ics, TFT LCD panels and Flash memories. The Device Solution Network operates 11 overseas sales subsidiaries and mass production facilities to maximize on hand customer support. For more information, visit our website at http://www>.samsungsemi.com
Samsung Semiconductor Inc., a wholly owned U.S. subsidiary of Samsung Electronics Co., Ltd., is located in San Jose, Calif. More information can be found at http//www.usa.samsungsemi.com/.
Samsung Semiconductor Europe, a wholly owned subsidiary of Samsung Electronics Co., Ltd., is headquartered in Frankfurt, Germany and London, UK with sales offices all over Europe. More information can be found at http://www.samsungsemi.de>
CONTACT: Lisa Postans/James Healy, Samsung Electronics Corporate Press Office Tel: +44 (0)207 898 3333 Fax: +44 (0)207 898 3485 e-mail: Samsung@golinharris.com
M2 Communications Ltd disclaims all liability for information provided within M2 PressWIRE. Data supplied by named party/parties. Further information on M2 PressWIRE can be obtained at http://www.presswire.net on the world wide web. Inquiries to info@m2.com.
(C)1994-2003 M2 COMMUNICATIONS LTD
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sjratty, You call 1.50 % drop a nose dive?eom
SmartVideo Announces Wireless Capability
ATLANTA, Mar 31, 2003 (BUSINESS WIRE) -- SmartVideo Technologies Inc. (OTCBB: SMVD), the leading provider of high-quality full motion streaming video content to broadband, dial-up, and wireless Internet users, today announced the capability to deliver high-quality, full-motion video for wireless computers and PDA devices.
This capability is part of an ongoing business strategy to continually enhance the communications capabilities of our clients who have an existing investment in current technologies. One of our demonstration devices is a Siemens SX56 Pocket PC Phone, provided by AT&T Wireless Services (NYSE: AWE), with a throughput capability averaging 40Kbps across the AT&T Wireless Services Network.
"There has been much talk about the new 3G cellular standard, which will provide broadband to handheld computers. Our capability supports both the new 3G devices, as well most of the current and older systems," according to Richard E. Bennett, Jr., CEO of SmartVideo.
About SmartVideo
SmartVideo is a leading provider of solutions allowing live or on-demand high-quality video presentations to be streamed over the Internet at speeds as low as 23K and at minimum rate of 15 frames per second, which allows our clients to reach more than 95% of all Internet users.
Companies around the world are actively seeking innovative solutions to harness the power of video and audio on their websites and in their businesses. SmartVideo believes it is uniquely positioned to help fill this need. We expect that the demand for, and use of, our services will grow at a faster rate than most other Internet applications. Additional information and sample Demos can be found at our web site: www.smartvideo.com.
Please join us for a live demonstration of SmartVideo's capabilities each Thursday at 1 p.m. EST.
This release contains forward-looking information within the meaning of the Private Securities Litigation Reform Act of 1995, including statements about the effects of future operational plans and quotes from SmartVideo's president and CEO. These statements are based on current estimates and actual results may differ materially due to risks, including: unexpected costs, delays or other difficulties related to the timing and success of product development and marketing plans; adverse changes in the market for the delivery of full-motion, streaming video content; the failure of SmartVideo's hosting infrastructure; the complexity of SmartVideo's services and delivery networks; pricing and other activities by competitors; and difficulties involved in retaining and motivating key personnel. Words such as "intend," "expects," "anticipates," "projects," "estimates", and similar expressions are intended to identify forward-looking statements. Forward-looking statements include statements concerning plans, objectives, future events or performance and assumptions and other statements that are not statements of historical fact. Any projections in this release are based on limited information currently available to SmartVideo, which is subject to change. Although the company believes that the expectations reflected in forward-looking statements are reasonable, it can give no assurance that such expectations will prove correct. Actual events or results could differ materially and no reader of this release should assume later that the information provided today is still valid. Such information speaks only as of the date of this release.
CONTACT: For SmartVideo Technologies, Atlanta
Richard E. Bennett, Jr., 770/729-8777
or
Investor Relations
Victor Allgeier, 212/227-0997
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INDUSTRY KEYWORD: NETWORKING
E-COMMERCE
INTERNET
PRODUCT
SOURCE:
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Inc.
GSM ASSOCIATION: Response to Californian Congressman Darrell Issa's
Mar 28, 2003 (M2 PRESSWIRE via COMTEX) -- "Congressman Issa's intervention that GSM is an 'outdated French standard' is as ill-timed as it is misinformed. At the moment our first priority must be to offer our support and sympathies to the people putting their lives on the line to liberate Iraq.
The right time to debate the technology will be when the real conflict is over. And at that time we should look at the real facts, not the Congressman's ill advised opinion. To suggest that GSM is simply a European or French standard is, in the current climate, quite outrageous.
* GSM stands for 'Global System for Mobile Communications' and its users can roam throughout the world on the same phone with the same number.
* GSM is used by almost one billion consumers and on every continent of the world, with 550 operators across 193 countries.
* GSM is a worldwide standard accounting for 72 per cent of the digital wireless market today.
* GSM is an 'open standard', which means any manufacturer from any country can make GSM equipment on a 'level playing field' - including North American companies such as Motorola, Lucent and Nortel. Global manufacturers supporting this open standard include Samsung, Panasonic, NEC, Toshiba, Nokia, Ericsson, Mitsubishi, Siemens and many more.
* Major network operators in the USA offer GSM services such as AT&T Wireless, Cingular Wireless, T-Mobile USA and in Canada it is provided by Microcell.
* GSM is already deployed in every country of the Middle East region - CDMA is not deployed in any.
* GSM was installed in Afghanistan post-war by an American company (TSI of New York) after a full tender process.
Today, there are more than 20 Arab countries with GSM networks and 60 million customers in the region. Iraq, of course, has been under UN Sanctions and therefore has not been able to purchase GSM technology.
Therefore, the suggestion that CDMA technology be deployed in Iraq post-war is completely at odds with the rest of the region and the majority of the world. It would add to the country's isolation and arguably be at odds with the overall war effort.
I can't believe someone has started this debate at this time, and I certainly can't believe it has been started from such a false position and on such nationalistic terms."Richard Fogg Companycare Communications Ltd.
About the GSM Association:
The GSM Association (GSMA) is the world's leading wireless industry representative body. It consists of more than 690 second and third generation wireless network operators working collaboratively to accelerate the implementation of collectively identified, commercially prioritised operator requirements. The Association's members provide digital wireless services to more than 825 million customers in 193 countries of the world (end February 2003).
The GSM family of wireless communications platforms, including GSM, GPRS (General Packet Radio Services), EDGE (Enhanced Data for GSM Evolution) and W-CDMA account for approximately 72 percent of the total digital wireless market today. The GSM Association is a unique organisation, with truly global reach, offering a full range of business and technical services to its members. For more information, visit the website at www.gsmworld.com. GSM is a registered trademark, registered and owned by the GSM Association. "GSM - The Wireless Evolution"
CONTACT: Richard Fogg, Companycare Communications Tel: +44 (0)118 939 5900 e-mail: richard@companycare.com
M2 Communications Ltd disclaims all liability for information provided within M2 PressWIRE. Data supplied by named party/parties. Further information on M2 PressWIRE can be obtained at http://www.presswire.net on the world wide web. Inquiries to info@m2.com.
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Korean govt to focus on 9 IT areas over next 20-30 yrs
SEOUL, Mar 28, 2003 (Asia In Focus via COMTEX) -- The Ministry of Information and Communication will focus on the development of nine promising IT areas, including intelligent robotics and telematiks, over the next 20-30 years. Officials said the Ministry will also push for the introduction of a real name system in all public Internet forums.
* However, the Ministry plans to postpone nationwide services of a new third generation (3G) mobile service, better known as IMT-2000, until after 2006.
* The government had planned to introduce the 2GHz 3G service based on W-CDMA technology nationwide by 2006 as it expected the current frequency range to reach its maximum capacity this year.
(C) Copyright 2003 Asia In Focus
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KEYWORD: South Korea
INDUSTRY KEYWORD: Telecommunications
Technology
Computers/IT
Nokia to make cell phones in China
HELSINKI, Finland, Mar 31, 2003 (AP WorldStream via COMTEX) -- Nokia Corp., the world's biggest manufacturer of cellular phones, said Monday it will start making its own brand-name phones in China and strengthen its presence in one of the world's largest markets.
The Finnish firm said it has already begun to merge its four Chinese manufacturing joint ventures, which make locally branded phones and network equipment, into a single Beijing-based company.
Nokia will hold a 60 percent stake in the as-yet-unnamed company. The local stake-holders will be Beijing Capitel Co. Ltd., Dongguan Nan Xin Industrial Development Co., Shanghai Alliance Investment Ltd. and the Beijing Hangxing Machinery Manufacturing Corp.
Nokia said it expects to begin making phones in China during the second half of 2003 that use CDMA, or "code division multiple access," the dominant standard in North America and South Korea.
China Unicom, the country's second-biggest cellular operator, supports both the CDMA standard and its major rival GSM, short for "global system for mobile communications." The company signed up 7 million CDMA users in 2002 and expects to add another 13 million this year.
"Now it's clear that CDMA will account for some part of the Chinese handset market, so obviously we want to participate in that area of the business as well," said Nokia spokesman Kari Tuutti.
Nokia already makes phones compatible with GSM, the system used by 70 percent of the world's wireless users. The company supplies more than one of every three mobile phones sold worldwide, but controls just 10 percent of the CDMA market.
The Nokia-produced CDMA phones will be used mostly in China, Tuutti said.
China accounts for nearly a sixth of the world's approximately 1.3 billion mobile phone users. Last week, a report from analysts Lehman Brothers estimated that around 15 million CDMA phones will be sold in China this year.
Petri Arjama, an analyst with Handelsbanken in Stockholm, Sweden, said it was important for Nokia to build its market share in China.
"And the CDMA side is the side that they need to focus on," Arjama said.
In trading Monday on the Helsinki Stock Exchange, shares of Nokia were down 0.69 euros (75 cents), or 5 percent, to 12.93 euros (US$13.96).
---
On the Net:
Nokia: http://www.nokia.com
Copyright 2003 Associated Press, All rights reserved
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China Mobile expected to use WCDMA for 3G
Mar 28, 2003 (The Asian Wall Street Journal - ABIX via COMTEX) -- TD-SCDMA (time division synchronous code division multiple access) is China's third generation mobile standard. Datang Mobile Communications Equipment's Tang Ru'an says TD-SCDMA will not be available commercially until mid-2004. Tang predicts that China Mobile Communications will bypass the standard in favour of the better-known WCDMA (wideband code division multiple access). China Mobile caters to roughly 70 per cent of China's mobile telephone users. Tang's words will comfort investors, who worry that the Government could make the telco use TD-SCDMA.
Publication Date: 27 March 2003
CHINA MOBILE COMMUNICATIONS
CORPORATION:
DATANG MOBILE COMMUNICATIONS
EQUIPMENT COMPANY
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Government Administration
SUBJECT CODE: TELECOMMUNICATIONS - CHINA
MOBILE TELEPHONES - CHINA
WIRELESS COMMUNICATION SYSTEMS
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4. Securities Acquired
(A) or Disposed of (D)
(Instr. 3, 4 & 5)
5. Amount of
Securities
Beneficially
Owned Follow−
ing Reported Transactions(s)
(Instr. 3 & 4)
6. Owner−
ship Form:
Direct (D)
or Indirect (I)
(Instr. 4)
7. Nature of Indirect
Beneficial Ownership
(Instr. 4)
Code V Amount (A)
or
(D)
Price
Common Stock 02/14/03 A 2,419(1) A (1) 7,207(1) D
Common Stock V 402(2) I By 401(k) Plan
Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly.
* If the form is filed by more than one reporting person, see Instruction 4(b)(v).
Persons who respond to the collection of information contained in this form are not required to respond unless the form displays a currently valid
OMB control number
FORM 4 (continued) Table II − Derivative Securities Acquired, Disposed of, or Beneficially Owned
(e.g., puts, calls, warrants, options, convertible securities)
1. Title of
Derivative
Security
(Instr. 3)
2. Conver−
sion or
Exercise
Price of
Derivative
Security
3.
Trans−
action
Date
(Month/
Day/
Year)
3A.
Deemed
Execution
Date,
if any
(Month/
Day/
Year)
4.
Trans−
action
Code
(Instr.
8)
5. Number
of
Derivative
Securities
Acquired
(A) or
Disposed
of (D)
(Instr. 3, 4
& 5)
6. Date Exercisable
and Expiration
Date
(Month/Day/
Year)
7. Title and
Amount of
Underlying
Securities
(Instr. 3 & 4)
8. Price of
Derivative
Security
(Instr. 5)
9. Number of
Derivative
Securities
Beneficially
Owned
Following
Reported
Transaction(s)
(Instr. 4)
10.
Owner−
ship Form
of Deriv−
ative
Security:
Direct (D)
or Indirect
(I)
(Instr. 4)
11. Nature
of Indirect
Beneficial
Ownership
(Instr. 4)
Code V (A) (D) Date
Exer−cisable
Expira−
tion
Date
Title Amount
or
Number
of
Shares
Explanation of Responses:
(1) Granted pursuant to the InterDigital Communications Corporation 1999 Restricted Stock Plan. Shares granted have been amended to reflect an accounting
error resulting in an increase of 269 shares (i.e., 2,150 previously reported, resulting in an increase of 269 shares (i.e., 2,150 previously reported, 2,419 now
reported). Direct beneficial ownership has increased from 6,938 to 7,207.
(2) Between July 1, 2001 and December 31, 2002, the Reporting Person acquired 402 shares of Common Stock pursuant to the InterDigital Communications
Corporation Savings and Protection Plan. This information is based on the most recently published account statement dated December 31, 2002.
By: /s/ Rebecca Bridgeford Opher, Attorney−In−Fact for
Alain C. Briancon
**Signature of Reporting Person
March 28,
2003
Date
**Intentional misstatements or omissions of facts constitute Federal Criminal Violations.
See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
Note: File three copies of this Form, one of which must be manually signed.
If space is insufficient, See Instruction 6 for procedure.
Persons who respond to the collection of information contained in this form are not required to respond unless the form displays a currently valid OMB Number.
_______________________________________________
Created by 10KWizard Technology www.10KWizard.com
Technical Issue Snags Wireless Plan for Iraq
United States, Mar 28, 2003 (Newsbytes via COMTEX) -- The U.S. government is planning to rebuild Iraq's national wireless network with a standard developed by a consortium of European companies, a move that has angered a California congressman who supports an American alternative.
Rep. Darrell Issa (R-Calif.) introduced legislation yesterday that would effectively force the U.S. Agency for International Development to award a contract for the work to a U.S. company using the CDMA (Code Division Multiple Access) standard developed by San Diego-based Qualcomm Inc.
The project comes as the telecommunications industry has been hobbled by a sharp downturn in business. Qualcomm is locked in a country-by-country battle with telecommunications carriers that use a European wireless standard known as Global System for Mobile Communication (GSM).
Issa's bill also calls on the aid agency to give preference to U.S. companies in all other contracts awarded for the reconstruction of Iraq.
Because Iraq's existing network already uses GSM technology, and because most other countries in the Middle East do so, too, the agency is likely to award the contract to a GSM-oriented company, the source said.
"After the war, you want all these businesspeople from all over the world, and not just from the USA, to go there and have their phones work," the source said.
If the contract does specify a GSM network, Illinois-based Motorola Inc. is likely to be the front runner for the project. Motorola is the only major U.S.-based company that manufactures GSM equipment. "It is extremely unlikely" that the contract will not go to Motorola, said one source familiar with the process.
A USAID spokeswoman declined to comment yesterday.
Issa dismissed the GSM standard yesterday as a qualified contender for the contract because it was developed by a consortium of European countries. Issa estimated the value of the contract to be $1 billion and royalties from the standard to be as much as $100 million.
"If we were going to give $1 billion worth of wheat to Iraq, would you care if it was U.S. wheat or French wheat?" asked Issa.
The source with knowledge of the proposed contract said its value may be as little as $200 million. Ultimately it will depend on how much of the existing wireless network is left standing after the bombing campaign in Iraq. The contract is likely to encompass a network serving the entire populated region of Iraq, including Basra in the south and Kirkuk in the north.
Motorola declined to comment. Qualcomm did not return calls yesterday.
While GSM now has broader distribution, CDMA is popular in the United States and Asia, in part because it uses airwaves more efficiently and is better able to transfer data. Consumers around the world are increasingly using their wireless phones to send and receive data.
Issa said he was concerned that the U.S. government would effectively give its seal of approval to GSM at a time when the two standards are competing around the world. "They are sending a message to Jordan and the other countries: 'Don't buy CDMA -- even the U.S. government buys GSM.' "
Qualcomm donated $5,500 to Issa's campaign during the last election cycle, making the company one of his top contributors, according to the Center for Responsive Politics.
The agency is planning to put the contract out for bid next month.
Issa promised opposition: "This fight isn't over until someone says so on the House floor."
By Christopher Stern Reported By TechNews.com, http://www.TechNews.comCopyright 2003 The Washington Post Company
-0-
KEYWORD: United States
SUBJECT CODE: WIRES
technology/specials/telecom/wireles
Swedish government proposes new law to speed up rollout of 3G networks
Mar 28, 2003 (TELECOMWORLDWIRE via COMTEX) -- Draft legislation passed by the Swedish government to parliament this week aims to speed up the rollout of third generation (3G) mobile phone networks.
The government has proposed giving the Swedish telecomms authority PTS more powers to ensure cooperation between operators in building the 3G networks.
If operators used each other's masts for transmitters in areas where new building permits are difficult to obtain, the networks could be rolled out much quicker.
Under the government's proposal PTS would be able to order the operators to cooperate if it would benefit consumers.
If passed by parliament the new law could step into force in mid-July, Reuters reported.(C)1994-2003 M2 COMMUNICATIONS LTD http://www.m2.com
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Iraq Could Become a CDMA Oasis
Mar 28, 2003 (ComputerWire via COMTEX) -- Qualcomm Inc's CDMA mobile network technology could gain an unexpected boost if an American Congressman gets his way.
Californian Republican, Darrell Issa, along with other lawmakers, has petitioned US Defense Secretary Donald Rumsfeld to block moves by two government agencies to supply GSM mobile phone networks to Iraq once the current conflict is over.
Issa said the selection of GSM technology by the US Defense Department and US Agency for International Development is unpatriotic.
"If U.S. taxpayers are going to be gifting billions of dollars in technology and infrastructure to the Iraqi people we ought to make sure, to the greatest extent possible, that those expenditures also benefit the American people and the American economy," Issa said in a statement. "If we build a system based on European technology the Europeans will receive the royalties, not U.S. patent holders. From an investment standpoint, that is a bad decision."
Leaving aside the US's current disagreements with numerous European countries, a decision to equip Iraq with CDMA networks would be a tactically poor one, given GSM's overwhelming dominance in the Middle East.
The GSM Association currently lists 22 GSM networks in Arabic states and a further 21 in east and central Asia. In comparison, the CDMA Development Group lists only four countries in physical or cultural proximity to Iraq that have deployed CDMA to any degree: Egypt, Yemen, Israel and Iraq's neighbor, Kuwait.
But providing Iraq with the appropriate network for its region, where roaming and other inter-operator agreements would help foster increased use of mobile communications in the country, is only part of the picture.
Pre-war, telecoms analyst Pyramid Research Inc predicted capital expenditure on mobile networks in the country of about $33m in 2003 and $36m in 2004. Having to replace damaged equipment after the war would significantly increase this figure.
ComputerWire News: Issue 4636, March 28, 2003(C) Copyright 2003 ComputerWire.
Not to be reproduced in whole or in part without written permission.
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GSM ASSOCIATION: Response to Californian Congressman Darrell Issa's
Mar 28, 2003 (M2 PRESSWIRE via COMTEX) -- "Congressman Issa's intervention that GSM is an 'outdated French standard' is as ill-timed as it is misinformed. At the moment our first priority must be to offer our support and sympathies to the people putting their lives on the line to liberate Iraq.
The right time to debate the technology will be when the real conflict is over. And at that time we should look at the real facts, not the Congressman's ill advised opinion. To suggest that GSM is simply a European or French standard is, in the current climate, quite outrageous.
* GSM stands for 'Global System for Mobile Communications' and its users can roam throughout the world on the same phone with the same number.
* GSM is used by almost one billion consumers and on every continent of the world, with 550 operators across 193 countries.
* GSM is a worldwide standard accounting for 72 per cent of the digital wireless market today.
* GSM is an 'open standard', which means any manufacturer from any country can make GSM equipment on a 'level playing field' - including North American companies such as Motorola, Lucent and Nortel. Global manufacturers supporting this open standard include Samsung, Panasonic, NEC, Toshiba, Nokia, Ericsson, Mitsubishi, Siemens and many more.
* Major network operators in the USA offer GSM services such as AT&T Wireless, Cingular Wireless, T-Mobile USA and in Canada it is provided by Microcell.
* GSM is already deployed in every country of the Middle East region - CDMA is not deployed in any.
* GSM was installed in Afghanistan post-war by an American company (TSI of New York) after a full tender process.
Today, there are more than 20 Arab countries with GSM networks and 60 million customers in the region. Iraq, of course, has been under UN Sanctions and therefore has not been able to purchase GSM technology.
Therefore, the suggestion that CDMA technology be deployed in Iraq post-war is completely at odds with the rest of the region and the majority of the world. It would add to the country's isolation and arguably be at odds with the overall war effort.
I can't believe someone has started this debate at this time, and I certainly can't believe it has been started from such a false position and on such nationalistic terms."Richard Fogg Companycare Communications Ltd.
About the GSM Association:
The GSM Association (GSMA) is the world's leading wireless industry representative body. It consists of more than 690 second and third generation wireless network operators working collaboratively to accelerate the implementation of collectively identified, commercially prioritised operator requirements. The Association's members provide digital wireless services to more than 825 million customers in 193 countries of the world (end February 2003).
The GSM family of wireless communications platforms, including GSM, GPRS (General Packet Radio Services), EDGE (Enhanced Data for GSM Evolution) and W-CDMA account for approximately 72 percent of the total digital wireless market today. The GSM Association is a unique organisation, with truly global reach, offering a full range of business and technical services to its members. For more information, visit the website at www.gsmworld.com. GSM is a registered trademark, registered and owned by the GSM Association. "GSM - The Wireless Evolution"
CONTACT: Richard Fogg, Companycare Communications Tel: +44 (0)118 939 5900 e-mail: richard@companycare.com
M2 Communications Ltd disclaims all liability for information provided within M2 PressWIRE. Data supplied by named party/parties. Further information on M2 PressWIRE can be obtained at http://www.presswire.net on the world wide web. Inquiries to info@m2.com.(C)1994-2003 M2 COMMUNICATIONS LTD
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EquityOutlook.Com: EquityOutlook.Com announces Stock Evaluation Ratings
SHREVEPORT, La., Mar 27, 2003 (M2 PRESSWIRE via COMTEX) -- EquityOutlook.Com makes these short-term stock recommendations:
Apollo Group Inc (NASDAQ:APOL - News) - SELL United Microelectronics (NYSE:UMC - News) - SELL InterDigital Communications (NASDAQ:IDCC - News) - BUY Tellabs (NASDAQ:TLAB - News) - SELL National Semiconductor (NYSE:NSM - News) - SELL
WHAT THESE RATINGS MEAN: EquityOutlook.Com ranks stocks with a proprietary unbiased system of technical analysis. These ratings do not indicate a "long term" view of any company listed. These are ratings that reflect our opinion of a stock's potential price movement over the next five to ten trading sessions. The stock ratings range from +10 (which indicates our view that a stock has a great chance to move higher) to - 10 (which indicates our belief that a stock has a great chance to move lower).
These ratings may change based on daily market conditions.
ABOUT EquityOutlook.Com:
EquityOutlook.Com is a stock research firm. Our daily commentary has regular, worldwide distribution. We are Registered Investment Advisors. We do not accept third-party compensation to make stock suggestions. We do not own shares of any stock we rate.
Investors are advised that this analysis is issued solely for informational purposes and is not to be construed as an offer to sell or the solicitation of an offer to buy. This report does not have regard to the specific investment objectives, financial situation and the particular needs of any specific person who may receive this information. The information contained herein is based on sources that we believe to be reliable but is not guaranteed by us as being accurate and does not purport to be a complete statement or summary of the available data. Past performance is no guarantee of future results. Any opinions expressed herein are statements of our judgment as of the date of publication and are subject to change without notice. Reproduction without written permission is prohibited.
EquityOutlook.Com's goal is to provide stock research FREE from bias or conflicts. You can get your FREE trial to EquityOutlook.Com at http://www.equityoutlook.com.
M2 Communications Ltd disclaims all liability for information provided within M2 PressWIRE. Data supplied by named party/parties. Further information on M2 PressWIRE can be obtained at http://www.presswire.net on the world wide web. Inquiries to info@m2.com.(C)1994-2003 M2 COMMUNICATIONS LTD
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that last one was a form 4a. eom
FORM 4 UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
OMB APPROVAL
Check this box if no longer
subject to Section 16. Form 4 or
Form 5 obligations may
continue. See Instruction 1(b). STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP
Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934, Section 17(a) of the Public Utility
Holding Company Act of 1935 or Section 30(h) of the Investment Company Act of 1940
OMB Number: 3235−0287
Expires: January 31, 2005
Estimated average burden
hours per response. . .0.5
Filed By
Romeo and Dye's
Section 16 Filer
www.section16.net
1. Name and Address of Reporting Person*
Shay, Lawrence F.
2. Issuer Name and Ticker or Trading Symbol
InterDigital Communications Corporation (IDCC)
6. Relationship of Reporting Person(s)
to Issuer (Check all applicable)
Director 10%
Owner
X Officer (give title below) Other
(specify below)
Vice President, General Counsel and
Corporate Secretary
(Last) (First) (Middle)
781 Third Avenue
3. I.R.S. Identification Number
of Reporting Person,
if an entity (voluntary)
4. Statement for
Month/Day/Year
February 14, 2003
(Street)
King of Prussia,, PA 19406−1409
5. If Amendment,
Date of Original
(Month/Day/Year)
February 14, 2003
7. Individual or Joint/Group Filing (Check
Applicable Line)
X Form filed by One Reporting Person
Form filed by More than One Reporting
Person
(City) (State) (Zip) Table I — Non−Derivative Securities Acquired, Disposed of, or Beneficially Owned
1. Title of Security
(Instr. 3)
2. Trans−
action
Date
(Month/ Day/
Year)
2A. Deemed
Execution
Date,
if any
(Month/Day/
Year)
3. Trans−
action
Code
(Instr. 8)
4. Securities Acquired
(A) or Disposed of (D)
(Instr. 3, 4 & 5)
5. Amount of
Securities
Beneficially
Owned Follow−
ing Reported Transactions(s)
(Instr. 3 & 4)
6. Owner−
ship Form:
Direct (D)
or Indirect (I)
(Instr. 4)
7. Nature of Indirect
Beneficial Ownership
(Instr. 4)
Code V Amount (A)
or
(D)
Price
Common Stock 02/14/03 A 1,571 A (1) 5,859(2) D
Common Stock V 267(3) I By 401(k) Plan
Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly.
* If the form is filed by more than one reporting person, see Instruction 4(b)(v).
Persons who respond to the collection of information contained in this form are not required to respond unless the form displays a currently valid
OMB control number
FORM 4 (continued) Table II − Derivative Securities Acquired, Disposed of, or Beneficially Owned
(e.g., puts, calls, warrants, options, convertible securities)
1. Title of
Derivative
Security
(Instr. 3)
2. Conver−
sion or
Exercise
Price of
Derivative
Security
3.
Trans−
action
Date
(Month/
Day/
Year)
3A.
Deemed
Execution
Date,
if any
(Month/
Day/
Year)
4.
Trans−
action
Code
(Instr.
8)
5. Number
of
Derivative
Securities
Acquired
(A) or
Disposed
of (D)
(Instr. 3, 4
& 5)
6. Date Exercisable
and Expiration
Date
(Month/Day/
Year)
7. Title and
Amount of
Underlying
Securities
(Instr. 3 & 4)
8. Price of
Derivative
Security
(Instr. 5)
9. Number of
Derivative
Securities
Beneficially
Owned
Following
Reported
Transaction(s)
(Instr. 4)
10.
Owner−
ship Form
of Deriv−
ative
Security:
Direct (D)
or Indirect
(I)
(Instr. 4)
11. Nature
of Indirect
Beneficial
Ownership
(Instr. 4)
Code V (A) (D) Date
Exer−cisable
Expira−
tion
Date
Title Amount
or
Number
of
Shares
Explanation of Responses:
(1) Granted pursuant to the InterDigital Communications Corporation 1999 Restricted Stock Plan.
(2) Direct beneficial ownership amended to reflect a decrease of 133 shares of Common Stock which is owned indirectly through Reporting Person's 401(k) plan.
Indirect ownership is correctly reported herein.
(3) Between July 1, 2001 and December 31, 2002, the Reporting Person acquired 267 shares of Common Stock pursuant to the InterDigital Communications
Corporation Savings and Protection Plan. This information is based on the most recently published account statement dated December 31, 2002.
By: /s/ Rebecca Bridgeford Opher, Attorney−In−Fact for
Lawrence F. Shay
**Signature of Reporting Person
March 27,
2003
Date
**Intentional misstatements or omissions of facts constitute Federal Criminal Violations.
See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
Note: File three copies of this Form, one of which must be manually signed.
If space is insufficient, See Instruction 6 for procedure.
Persons who respond to the collection of information contained in this form are not required to respond unless the form displays a currently valid OMB Number.
_______________________________________________
Created by 10KWizard Technology www.10KWizard.com
alot of huge blocks today.eom
Verizon Wireless Expands Express Network Coverage with Nortel Networks
DALLAS, Mar 27, 2003 (BUSINESS WIRE) -- Verizon Wireless, the nation's largest wireless service provider, is currently deploying CDMA2000 1X wireless voice and data network infrastructure equipment from Nortel Networks (NYSE:NT)(TSE:NT) in Georgia and Alabama markets recently acquired from Price Communications.
The network improvements will significantly increase the capacity of Verizon Wireless' network and support delivery of next generation wireless data services to subscribers - including text messaging, 'Get It Now' games and entertainment solutions and Express Network, the carrier's premier wireless internet access service. Express Network is available to customers coast to coast in more than 900 cities throughout the U.S. and enhances interactive wireless data communications - from email to intranet to full Internet access.
Verizon Wireless Express Network makes it practical for mobile users to access the Internet, their corporate intranet and email on a wireless high-speed service that offers speeds comparable to dial-up service. The high-speed, data network supports enterprise applications, giving companies with mobile workforce access to tools for increased productivity and efficiency. Additionally, Verizon Wireless' voice and data customers benefit from access to the nation's largest wireless network.
"The deployment of CDMA technology in our newly acquired markets will allow us to meet the demands of our rapidly growing subscriber base in the southeast," said Jim McGean, president, Verizon Wireless Georgia/Alabama region. "Both our business and consumer customers can immediately benefit from clearer calls, enhanced features such as text messaging, and access to cutting-edge data services that improve communication and productivity."
Nortel Networks CDMA2000 technology is designed to drive reduced cost of ownership due to re-use of network elements and enable Verizon Wireless to improve voice quality and increase radio base station capacity to support a greater volume of voice and data traffic.
The deployment includes Nortel Networks Univity CDMA2000 1X Metro Cell radio base station equipment, mobile switches and related infrastructure for expansion of Verizon Wireless' wireless data network.
"Nortel Networks is committed to helping wireless operators drive down operating costs and improve network efficiencies. Our CDMA technology provides investment protection for operators based on our expertise in packet networking in the core, and our proven radio access solutions," said Steve Slattery, president and general manager, CDMA/TDMA Wireless Networks, Nortel Networks. "We have a long-standing relationship with Verizon Wireless and have been able to deliver the capability to increase voice capacity and deploy advanced wireless data services."
Nortel Networks has been providing wireless equipment to Verizon Wireless and its predecessor companies since September 1996.
Nortel Networks is implementing CDMA for leading service providers around the world. Nortel Networks has designed, installed and launched CDMA networks across five continents with more than 65 operators in 17 countries, and has deployed more than 35,000 3G-ready base stations.
Verizon Wireless is the nation's leading provider of wireless communications. The company has the largest nationwide wireless voice and data network and 31.5 million customers. Headquartered in Bedminster, NJ, Verizon Wireless is a joint venture of Verizon Communications (NYSE:VZ) and Vodafone (NYSE:VOD)(LSE:VOD). Find more information on the Web at www.verizonwireless.com.
Nortel Networks is an industry leader and innovator focused on transforming how the world communicates and exchanges information. The company is supplying its service provider and enterprise customers with communications technology and infrastructure to enable value-added IP data, voice and multimedia services spanning Metro and Enterprise Networks, Wireless Networks and Optical Networks. As a global company, Nortel Networks does business in more than 150 countries. More information about Nortel Networks can be found on the Web at www.nortelnetworks.com.
Certain information included in this press release is forward-looking and is subject to important risks and uncertainties. The results or events predicted in these statements may differ materially from actual results or events. Factors which could cause results or events to differ from current expectations include, among other things: the severity and duration of the industry adjustment; the sufficiency of our restructuring activities, including the potential for higher actual costs to be incurred in connection with restructuring actions compared to the estimated costs of such actions; fluctuations in operating results and general industry, economic and market conditions and growth rates; the ability to recruit and retain qualified employees; fluctuations in cash flow, the level of outstanding debt and debt ratings; the ability to meet financial covenants contained in our credit agreements; the ability to make acquisitions and/or integrate the operations and technologies of acquired businesses in an effective manner; the impact of rapid technological and market change; the impact of price and product competition; international growth and global economic conditions, particularly in emerging markets and including interest rate and currency exchange rate fluctuations; the impact of rationalization in the telecommunications industry; the dependence on new product development; the uncertainties of the Internet; the impact of the credit risks of our customers and the impact of increased provision of customer financing and commitments; stock market volatility; the entrance into an increased number of supply, turnkey, and outsourcing contracts which contain delivery, installation, and performance provisions, which, if not met, could result in the payment of substantial penalties or liquidated damages; the ability to obtain timely, adequate and reasonably priced component parts from suppliers and internal manufacturing capacity; the future success of our strategic alliances; and the adverse resolution of litigation. For additional information with respect to certain of these and other factors, see the reports filed by Nortel Networks with the United States Securities and Exchange Commission. Unless otherwise required by applicable securities laws, Nortel Networks disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Nortel Networks, the Nortel Networks logo, the Globemark and Univity are trademarks of Nortel Networks.
CONTACT: Nortel Networks
Jamie Moody, 972/684-7167
moodyjam@nortelnetworks.com
or
Verizon Wireless
Sheryl Sellaway, 678/339-5564
sheryl.sellaway@verizonwireless.com
URL: http://www.businesswire.com
Today's News On The Net - Business Wire's full file on the Internet
with Hyperlinks to your home page.Copyright (C) 2003 Business Wire. All rights reserved.
-0-
KEYWORD: TEXAS GEORGIA ALABAMA
INDUSTRY KEYWORD: TELECOMMUNICATIONS
SOFTWARE
NETWORKING
HARDWARE
MARKETING
AGREEMENTS
SOURCE:
Nortel
Network
Push-To-Talk Becomes Hot Buttom For Data
Mar 26, 2003 (Wireless Data News/PBI Media via COMTEX) -- For all the expectations that high-speed, revenue-growing data services would push wireless operators into third-generation systems, the potential is emerging for simple push-to-talk (PTT) applications to prompt operators to migrate to the Internet-protocol world of 3G service.
The development of PTT capability for wireless interfaces other than Motorola's [NYSE: MOT] proprietary iDEN (integrated digital enhanced network) technology could become a key driver for CDMA operators to migrate their networks to CDMA2000 1X, EV-DO and EV-DV, and for GSM companies to move to GPRS, EDGE and W-CDMA. While Nextel Communications [Nasdaq: NXTL] and several other companies primarily in North America have made the two-way radio function the jewel of their iDEN service features, PTT also is a feature of TETRA (terrestrial trunked radio) systems used primarily in Europe. This year, Nextel is adding more luster to its Direct Connect PTT service by giving it nationwide reach.
Verizon Wireless, Sprint PCS [NYSE: PCS] and AT&T Wireless Services [NYSE: AWE] are among the carriers that have announced they either will offer PTT service or will conduct PTT trials this year. Before wireless operators outside the iDEN space--and their customers--make commercial PTT plans, some caution about technology must be considered.
Silicon Valley startup Sonim Technologies is bullish when describing how PTT, particularly its offering, will affect next-generation GSM networks (GPRS, EDGE and W-CDMA). Its core network technology, according to Rahul Khanna, its senior marketing director, opens the door to multiple voice-over-IP possibilities, starting with PTT.
"This is the Trojan horse to get the operators into 3G," Khanna tells Wireless Data News. In addition to PTT, San Mateo, Calif.-based Sonim's offering enables direct messaging to numbers on users' contact lists, and they add presence intelligence to other services offered on a network.
"Fear, greed and envy" will prompt GSM carriers and infrastructure vendors to integrate PTT technology, he adds: fear that their competitors will beat them to it, greed over the revenue possibilities and envy for competitors already using it.
Sonim's standards-based offering includes client and server software with call set-up and header compression based on wireless-optimized session initiation protocol (SIP) along with low-rate adaptive, multi-rate analog-to- digital converter for voice transport bundled by wireless real-time protocol and with half-duplex signal direction.
Chip vendors including Intel [Nasdaq: INTC] and Texas Instruments [NYSE: TXN] have integrated Sonim's software into digital signal processors for handsets, though no phone vendors have produced models with the chips. Three network operators are testing its server software, Khanna says.
Starent Networks isn't entering the wireless infrastructure market as a PTT player, but the Tewksbury, Mass., company expects the capability to become a primary driver for sales of its IP media gateway platforms for next-generation CDMA and GSM networks. Starent adds a card to its platforms to enable PTT, but doesn't require software changes in the phones used by subscribers on networks using its platforms.
Network operators could "do it right now," says Nick Lopez, Starent's director business development.
Starent is one of three vendors approved by Chinese telecom technology regulators to provide media gateways for CDMA2000 EV-DO deployments in the country. That approval enabled Starent to land a contract to supply China Unicom [NYSE: CHU] with media gateways for its planned EV-DO footprint in eight provinces.
It also has expanded its partnership with Samsung to provide the South Korean company with media gateways for its next-generation GSM (GPRS gateway service nodes) as well as CDMA (packet data serving nodes) projects.
Those steps create momentum for Starent, but Lopez tells Wireless Data News that enabling PTT should particularly enhance the company's image with wireless operators. "They really see it as a value-add," he says.
Nextel Still Rules
While these technology developers point to their rapid progress and their expectations for commercial launches before the end of the year, industry observers describe problems with their technologies and say PTT service from any carrier outside the iDEN and TETRA worlds is unlikely in 2003.
"Near-term [plans] have been exaggerated as competitive push-to-talk services will clearly have their own hurdles to overcome," observes Bill Densmore, U.S. wireless market analyst for Fitch Ratings.
Operators with non-iDEN networks, however, probably won't see the value of PTT soon. They're more likely to see problems with it, Fitch's Densmore predicts. Plus, once U.S. CDMA and GSM operators give PTT technology passing grades, they'll still face an uphill climb to take away Nextel's prized customer base -- business users. "There is a very real implementation and infrastructure hurdle," Densmore adds. The problems are too large "to really sustain a really strong biz model in the near-term."
Nextel operates "from a firmly entrenched position" in the PTT arena, so newcomers to the service will have to play catch-up, Densmore says. Nextel's consumer subscribers - between 20 percent and 25 percent of its 10 million-plus total -- will be most susceptible to moving to other carriers offering PTT. But Nextel and other U.S. commercial operations offering PTT won't soon be threatened by competing offers.
"Fitch believes competitive offerings will have negligible affects on Nextel in 2003, while possibly gaining some traction and dampening [Nextel's] net subscriber growth in 2004," Densmore says.
>>Bill Densmore, bill.densmore@fitchratings.com; Rahul Khanna, rahul@sonimtech.com; Nick Lopez, nlopez@starentnetworks.com.
Obstacles To Pushing And Talking On CDMA
* Call set-up latencies: iDEN, sub 1 second; CDMA, 5 seconds
* No inter-carrier interoperability: Same problem limited U.S. SMS growth
* Handset functionality: How many buttons will users push to talk?
* Large-scale deployments: Technology adequate for single markets, so far
PTT Pushes Nextel
* Immediate connections: Call set-up much faster than cellular/PCS connections
* Time saver: Most PTT sessions fewer than 30 seconds; cellular or PCS calls average 2.5 minutes
* Efficient group communication: Reach user group at push of a button instead of through multiple 10-digit dialing
More PTT Players
* Comverse-Mobile Tornado collaboration: Client and server software package for GPRS and W-CDMA networks with interoperability to other networks, including iDEN, and with presence capabilities.
* Winphoria: Global Instant Rendezvous server software requires third- party client software.
* Qualcomm: Qchat product available this year; pact with Nextel allowed development of Qchat for next-generation CDMA operators, but limits market to outside North America for two years.
* Nokia: Modified its TETRA infrastructure to work for GPRS.
* Togabi: Client-server platform is Samsung's choice to PTT-enable its CDMA network projects.
[Copyright 2003 PBI Media, LLC. All rights reserved.]
Wireless Data News, Vol. 11, No. 6 [Copyright 2003 PBI Media, LLC. All rights reserved.]Copyright 2003 PBI Media, LLC. All rights reserved.
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Telecoms industry slows down due to crisis
Venezuela, Mar 26, 2003 (El Nacional/SABI via COMTEX) -- The access to hard currency control ruled by the government is threatening the development of telecommunications technology that is addition to that has to deal with the discouragement of operators to invest in the introduction of new technologies as 3G. The current 3G terminals in the market have not the expected quality and there are not applications to justify further investments in up-to-date technology. The intermediate stage, or 2.5 generation, results to be more competitive under the current conditions. One of the signs of lack of interest is the failure in the tender for WLL and LMDS technologies held by the telecom commission Conatel. One of the companies concerned is Lucent Technologies that faces arrears of 20% of payments on equipment supplied to telecom operators.Copyright (c) 2003, South American Business Information, All rights reserved.
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INDUSTRY KEYWORD: Telecommunications
Telecommunications Equipment
EVENT: Market Informatio
Telecom Equipment Industry Consensus Table
Mar 26, 2003 (Nelson's Broker Summaries via COMTEX) --COMPANY TICKER RECOMMENDATION FY CONS EST
Corning, Inc. GLW Hold -0.02
InterDigital Communications Corp. IDCC Strong Buy 0.72
L-3 Communications Hldgs. LLL Buy 2.71
Polycom PLCM Buy 0.43
(nyse:GLW) (nasdaq:IDCC)(nyse:LLL) (nasdaq:PLCM)http://www.nelnet.comCopyright 2003, Nelson Information, a Thomson Financial company
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InterDigital Communications Corp. EPS Estimated At 1.23
Mar 26, 2003 (Nelson's Broker Summaries via COMTEX) --Company: InterDigital Communications Corp. (nasdaq:IDCC)
Report Headline: "INTERDIGITAL COMMUNICATIONS CORP."
Report Date: March 25, 2003
Current FY EPS Estimate [FY2003]: 1.23
Previous EPS Estimate for Current FY [FY2003]: N/A
Current Quarter EPS Estimate [Q1]: 0.03
Next FY EPS Estimate [FY2004]: N/A
Previous EPS Estimate for Next FY [FY2004]: N/A
Current Recommendation: BuyResearch Firm: Hilliard Lyons
Analyst: Thomas M. Carpenter
Industry: Telecom Equipmenthttp://www.nelnet.comCopyright 2003, Nelson Information, a Thomson Financial company
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InterDigital Communications Corp. Consensus Recommendation: Strong Buy
Mar 26, 2003 (Nelson's Broker Summaries via COMTEX) --Company: InterDigital Communications Corp. (nasdaq:IDCC)
Consensus Recommendation: Strong Buy
(Strong Buy: 1, Buy: 1, Hold: 0, Underperform: 0, Sell: 0)
Quarter Consensus Estimate [Q1]: 0.02
FY Consensus Estimate [FY2003]: 0.72
Next FY Consensus Estimate [FY2004]: N/A
Industry: Telecom Equipmenthttp://www.nelnet.comCopyright 2003, Nelson Information, a Thomson Financial company
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Alley, Thank you for your positive outlook.... I love reading your posts!
Thanks Data