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Jimlur, It seems once again we are in the waiting mode. I think most all of us here thought that once the ERICY situation was resolved we wouldn't have to do "more waiting" to find out whether IDCC was going to get paid, especially by Samsung and Nokia. I thought that was the trigger to sign the check, as we have heard it ain't that easy. Now it seems that they could very well become the next roadblocks to IDCC going forward. If we have to fight the battle and eventually go to arbitration what does that do for collecting from others that we thought ERICY resolution would trigger. I never dreamed we would be waiting again for such a monumental event to play out (will NOK or Samsung willingly pay)after we finally resolved ERICY. I like everyone else expect that a 3G license was already hammered out with ERICY and that it is announced soon or the integrety of the settlement will really be called into question. If IDCC didn't get that hammered out prior to agreeing to settlement I don't know where our leverage will come from. The obvious is that it better be a darn lucrative number at that....I hope the "integrety" Howard referred to wasn't "ERICY promised to work out a great 3G license with us"
Loop, once again I am in your camp on this one....a favor if you might, how did IDCC fair in our last arbitration hearing? We were looking for $??? and received$???. thanks
fmilt, I would venture to say that you feel exactly like many longs here today. Glad its over but the verdict is not what I had conservatively estimated. I maintain there is more to it that will be hidden in a 3G contract.
Anybody have official close, I am showing 19.63 (pretty close to the day high) on right at 6,000,000 shares......although scotttrader shows just over 5,000,000
WOW, shorts are posting their booties off this afternoon on yahoo...I've never seen so much goofy action over there...
My3sons...I hope you can magically find it but from reading and listenning to the cc I don't think we are missing anything UNLESS ERICY is paying thru the nose for 3G in an upcoming license. We are free to move forward now but this is 10% of what I expected as far as overall $$$ from ERICY, I also think that is why IDCC threw NOK and Samsung numbers in the press release....I am just happy its done!!!
my3Sons no no no....its 34 million total plus 24 million over the next 24 months for a total of 58 million....read all the releases and listen to the conference call...not 34 million times 12.....yep not what we expected...don't forget HRS doesn't have their money yet...
OT: dagrinch,I tend to agree.....I have already made up my mind which charity my dollars are going to because it is extrmely personal to me. I think its a good suggestion that we all be charitable in our good fortune but everyone will have their own belief on where it should go.
mmbtx-1, this was also covered in Q&A of the cc, I think. The answered was by Howard and went somewhat to the effect "we have been working through an insurance carrier and the net burden impact is very minimal on us".....something like that, certainly sounded like the legal fees were extremely minimal out of IDCC's pocket...
fmilt, If I am correct that questionw as brought up during Q&A and Fagan said that "No, 2002 numbers will not be affected", as per this was essentially a 2003 agreement.
I didn't like that comment from Fagan, his tone leads me to believe that Nokia and Samsung may indeed fight paying what IDCC belives they owe. He used the words "they have a binding contract" and used the word arbitration, for some reason I just get the feeling they are setting us up for something else....34 million and 24 mill is the total...no other payments from pre 2002 ERICY/Sony as some here (including me), had hoped. Q&A just getting started...JMO- that is OPINION...as a followup--Howard says that if it doesn't go to arbitration with Nok and Samsung everything would settle out by the end of 2003...if they have to go to arbitration it would most likely fall into 2004....
JK, the more and more I read and the more I digest..this just can't be right..has to be more to it. As teecee first brought up (I believe) Nokia doesn't come to the table with that much money based on this small of settlment. Let's hope that veil of secrecy we have all complained about is lifted today at the cc and we can get some answers. If its correct Mickey better be on suicide watch...
Jimlur...I would like to be a fly on the wall this morning when you are talking to those brokers you correspond with regarding IDCC.....thanks for all your help....1.5 mill shares traded already...when was the last time we traded more shares than QCOM in the first half hour....lol, I expect the big guys will wait until the emotions settle down before they hop in which might mean a little pullback from here?
How fun is this watching it trade....I can't wait until new analysts pop on board ad the revised figures come from the existing. Danny Detail you out there? Some of those folks just getting in the office today on wall Street must be wondering what the heck is going on....
Lady reporter on CNBC just announced IDCC settled with ERICY and that IDCC trading up 21%, keep that news out there....showed IDCC chart also
Bob, me too, way too much $$$ wrapped up in my onetime gamble stock (IDCC), but it looks like maybe I picked the right one with many on this boards help. Glad we have closed this chapter and the rest of the book will be great reading!!! Trying to stay calm and I know this might be a nutso day/week but longterm looks so doggone rosy...
TFWG, tend to agree, that is 10% of what I thought we might hammer out....but I refuse to be negative today, we've been waiting for a resolution and we got one, time to move forward.
teecee...do you think a 3G agreement will be forthcoming being it specifically said 3G is not covered...yippee here we go!!!!!!!
UNITED STATES SECURITIES AND
EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15 (d)
OF THE SECURITIES EXCHANGE ACT OF 1934
DATE OF REPORT (Date of earliest event reported): March 14, 2003
InterDigital Communications Corporation
(Exact name of registrant as specified in its charter)
Pennsylvania 1-11152 23-1882087
(State or other jurisdiction (Commission File (IRS Employer
of incorporation) Number) Identification No.)
781 Third Avenue, King of Prussia, PA 19406-1409
(Address of Principal Executive Offices) (Zip Code)
Registrant’s telephone number, including area code: 610-878-7800
Item 5. Other Events.
On March 17, 2003 the Company announced that its subsidiary, InterDigital Technology Corporation (ITC), has 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. The licensed products exclude any product compliant with Third Generation (3G) standards. The Company also announced that the long-standing patent infringement litigation with Ericsson has been settled and that 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 Second Generation (2G) GSM/TDMA and 2.5G GSM/GPRS/TDMA products under their existing patent licensing agreements with ITC. The text of the press release relating to the announcements is attached hereto and incorporated by reference herein as Exhibit 99.1.
Under the most favored licensee (MFL) provision applicable to their respective patent licenses, both Nokia and Samsung are obligated to pay royalties on sales of covered products from January 1, 2002, with the royalty to be based on the amounts paid or to be paid by certain major competitors (which include Ericsson and Sony Ericsson), taking into account all relevant factors. 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 connection with the Ericsson and Sony Ericsson license agreements, ITC expects to receive aggregate installment payments over the next twelve months of approximately $34 million from Ericsson and Sony Ericsson related to sales of terminal and infrastructure products through December 31, 2002. The license agreement with Sony Ericsson requires it to 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 giving effect to certain royalty rate discounts. 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.
Actual outcomes could differ from those expressed in these forward looking statements due to a variety of factors in addition to those specifically identified in such statements including those set forth in the press release attached hereto as Exhibit 99.1.
Item 7. Financial Statements, Pro Forma Financial Information and Exhibits
(c) Exhibits
99.1 Press release dated March 17, 2003
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
INTERDIGITAL COMMUNICATIONS CORPORATION
By: /s/ R.J. FAGAN
Richard J. Fagan
Executive Vice-President and Chief Financial Officer
Dated: March 17, 2003
EXHIBIT INDEX
Exhibit No.
Description
99.1 Press release dated March 17, 2003
Exhibit 99.1
Company Contact:
Guy Hicks
e-mail: guy.hicks@interdigital.com
Media Contact:
Dawn Goldstein
e-mail: dawn.goldstein@interdigital.com
Investor Contact:
Janet Point
e-mail: janet.point@interdigital.com
(610) 878-7800
FOR IMMEDIATE RELEASE
INTERDIGITAL SIGNS ROYALTY-BEARING GLOBAL 2G GSM/TDMA AND 2.5G
GSM/GPRS/TDMA PATENT LICENSE AGREEMENTS WITH ERICSSON AND SONY
ERICSSON
InterDigital and Ericsson Settle Long-Standing Patent Infringement Litigation
Agreements Define Financial Terms for Nokia and Samsung Royalty Obligations on
2G GSM/TDMA and 2.5G GSM/GPRS/TDMA Products Under Existing Patent License Agreements
King of Prussia, PA, March 17, 2003 . . . InterDigital Communications Corporation (Nasdaq: IDCC), a leading architect, designer and provider of wireless technology and product platforms, today announced that its subsidiary, InterDigital Technology Corporation (ITC), has 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. The licensed products exclude any product compliant with Third Generation (3G) standards. These agreements resolve a long-standing patent infringement litigation with Ericsson scheduled for trial in May 2003. Ericsson also has granted an option to InterDigital for a Reference Design License and Support Agreement for Ericsson’s GSM/GPRS/UMTS platform.
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 2G GSM/TDMA and 2.5G GSM/GPRS/TDMA products 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. 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. 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 prepayment of royalties (net of related
discounts) 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 prepayment of royalties 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 prepayments (net of related discounts) for twenty-four month periods, or pay royalties at the base rate 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.
“The licensing of Ericsson and Sony Ericsson is an important accomplishment within our strategic framework and a milestone event for our Company,” said Howard Goldberg, President and Chief Executive Officer. “With respect to our intellectual property activities, these agreements increase our global leverage in patent licensing, affirm the market value of our technology and patented inventions, and set the financial terms that will accelerate the receipt of royalty payments from Nokia and Samsung. We also are taking a positive step forward with Ericsson consistent with our broader strategic objective of creating enterprise value by combining patent and technology licensing with a product-oriented business relationship.”
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 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. In exchange for such prepayments, Sony Ericsson will be given certain royalty rate discounts. Once this initial prepayment is exhausted, Sony Ericsson can either make additional prepayments (net of related discounts) for twenty-four month periods, or pay royalties at the base rate on sales through 2006. Under terms of its agreement, Ericsson will pay ITC an annual license fee of $6 million for sales of covered infrastructure equipment for each of the years 2003 through 2006.
Given the multi-faceted nature of the agreements with Ericsson and Sony Ericsson, the Company has not finalized the manner in which certain elements of the agreements will be recognized in the Company’s financial statements.
William J. Merritt, President of ITC, stated, “We are very pleased to announce the completion of these agreements with Ericsson and Sony Ericsson. ITC has now licensed 25 manufacturers representing approximately 70% of the worldwide 2G GSM/TDMA and 2.5G GSM/GPRS/TDMA terminal market. These agreements will build upon the momentum of our ongoing 2G and 3G licensing efforts, strengthened by the market impact of establishing licensing rates for Nokia and Samsung, two key industry leaders.”
The Company will host a conference call on Monday, March 17, at 12:00 noon Eastern Standard Time to discuss the Ericsson license agreements, the settlement, and their impact on the Company. To access the conference call within the U.S. and Canada, please dial (877) 505-0448. International participants may access the call by dialing (706) 679-3165. Please dial in to the call by 11:50 a.m. Eastern Standard Time on March 17 and ask the operator for the InterDigital Conference call.
InterDigital also will provide access to the call on its web site at: www.interdigital.com. The Company encourages participants to take advantage of the Internet option if possible. For the Internet broadcast, click on the microphone icon next to “Live Web Cast” on the Home Page and you will link to the web cast. In preparation for the web cast, InterDigital recommends that you complete the Pre-Event System Test.
In addition, a replay of the conference call will be available for 48 hours after the completion of the call. To access the recorded replay, dial (800) 642-1687 and use the confirmation code 9233060. International participants may access the replay by dialing (706) 645-9291 and using the confirmation code 9233060. A replay of the conference call also will be available on our website.
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.
This press release contains forward-looking statements reflecting, among other things, the Company’s beliefs, plans, and expectations as to: (i) receipt, timing, amount, and calculation of royalty payments and certain prepayments from Ericsson, Sony Ericsson, Nokia, and Samsung and the royalty obligations of those parties, as well as revenue recognition of such royalties; (ii) the effect of the Ericsson and Sony Ericsson licensing agreements on the royalty obligations of Nokia and Samsung under their licensing agreements; (iii) the effect of the Ericsson and Sony Ericsson licensing agreements and establishing licensing rates for Nokia and Samsung on both the Company’s licensing efforts and the value of the Company’s technology and patented inventions; (iv) the Company taking a positive step forward with Ericsson; and (v) creating enterprise value through combining patent and technology licensing with a product-oriented business relationship. Words such as “expect”, “could”, “project”, “estimate”, “will”, “strategic objective”, “assumption”, “forecast” or similar expressions are intended to identify such forward-looking statements.
Forward-looking statements are subject to risks and uncertainties. Actual outcomes could differ materially from those expressed in any such forward-looking statements due to a variety of factors in addition to those specifically identified in such statements including, but not limited to: (i) any disputes, and the length and resolution of any disputes, as to the applicability of the terms of the Ericsson and Sony Ericsson licensing agreements to the royalty obligations of Nokia and Samsung under their licensing agreements; (ii) the review, negotiation and dispute resolution processes permitted under Nokia’s and Samsung’s license agreements and/or the results therefrom which could (a) cause delays in payment or cause changes in the anticipated amounts owed and/or paid by such parties, (b) impact anticipated leverage in patent licensing, and (c) impact our objective of combining licensing with a product-oriented business relationship; (iii) the financial inability or the unwillingness of any licensee to satisfy all of their royalty obligations on the terms we expect; (iv) a delay in the revenue recognition of royalties due to the financial inability or unwillingness of any licensee to satisfy its royalty obligations; (v) deterioration of the financial condition of any licensee, including any termination or rejection of any license resulting therefrom; (vi) legal and other proceedings that could adversely affect the validity of any license agreement and the royalty obligations or payments thereunder, or result in rejection or modification of any license agreement; (vii) failure of 2G and 2.5G sales to meet market forecasts whether due to global economic conditions, political instability, competitive technologies or otherwise; (viii) the impact of prepayment discounts or lack thereof and the accuracy of estimates by the licensees related thereto; (ix) the actual number and selling price of covered terminal units sold by our licensees; (x) any actual deviation from the assumptions made by the Company, including those related to product mix, sales prices, and market share of the licensees; (xi) a failure by any licensee to realize our or market projections for sales of covered products; (xii) the failure of the parties to agree to acceptable terms relating to the Company’s use of Ericsson’s GSM/GPRS/UMTS platform; (xiii) as well as other factors listed in the Company’s most recently filed 10-K and 10-Q. InterDigital undertakes no duty to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise.
InterDigital is a registered trademark of InterDigital Communications Corporation. All other trademarks are the property of their respective owners.
_____________________________________________________
Created by 10KWizard Technology.www.10KWizard.com
Hooray...finally some closure....Hopefully IDCC's release will be very positively worded, I guess it wilol be sometime and filings before we figure out EXACTLY what settlement terms amounted to....I am hoping that 250-400 mill upfront is buried in there somewhere....
boogie...amen, per your post....
"great news...
to all the guys who questioned the timing...BFD...
cut us all some slack....if they released it on monday...would anyone remember tuesday or wednesday....get a life....we made 2 million more dollars and those who move the stock and own the stock will like it...Y not...
for traders, yes Monday probably would have been better for a little spike to trade on, for longterm holders, BFD. Within a day or two we would most likely still be in our normal trading range. Makes no matter to me, 1.9 mill added to earnings a year from now will be like getting change from a dollar..IMO
teecee good news indeed, you are absolutely correct. Thanks to D.R. for keeping us up-to-date on these. I would point out one thing in your comment
I own a company whose lifeblood is patents
my belief......their lifeblood is "GETTING PAID" for those patents....
we've got one big pain in the a$$ situation holding up many many more from paying us for use of those patents. I do have alot of faith after Howard said "he was very comfortable with the situation" when asked about the trial delay. I do think IDCC is prepared to show us things are different and we will GET PAID for the patents that are being produced...I'm just READY......especially for the street to realize it. Part of being early to the party is patience for it to get rolling. I need to keep reminding myself of that.
teecee, nowhere did I say they were sitting on their butt...did I not also say that we were probably being overlycritical or nitpicking because things are so quiet. My theme of my comment was meant to be very basic "some good news would do us all some good and most of this little nitpicking would go away". I'm not going to keep wasting the boards time on this, I just think I either didn't convey myself properly or you misunderstood. Long and longer today (thanks to the dip), but I am READY for some good news, and I won't apologise for that. Happy bond trading.....we are absolutey 100% on the same side here...you just might have a little more patience and cool blood than I.
teecee if you are directing that to me please respond to my post. If you think it wouldn't do the majority of us here some good to have some positive news you are mistaken, in my opinion. I can't find the fault in saying that some good news would make people feel better.......did I not just say in an earlier post that I wasn't so much concerned about IDCC and where they stand, that sure as heck doesn't mean I would rather wait another 18 months for some type of resolution, it would make myself and most others here a little more comforted to see some good news....you would rather not see any good news? The answer doesn't always have to be "go sell your shares". When a parent comments that they are upset that their kid did bad on a test, do you say "ah just get rid of the kid and have another one".
wilco...tend to agree sort of, the difference between being viewed as a leader and a follower can be in the fine details. I also know that everybody and every company makes mistakes. The key is not to make the same mistake twice...did they? We are probably nitpicking because we are definitely in status quo mode and a bit testy...emotionally we sure could use some news...
teecee, have some patience with this amateur on this so very basic question. Is the uncertainty over the IRAQ situation the biggest negative in the market today? In your opinion. I deal with customers from DC to Miami to New Orleans on a daily basis and business is absolutely horrible. We, as a manufacturer, laid off another 10% of our workforce last week and our customers have ZERO optimism for a turnaround this year. 90% of them feel it is the UNCERTAINTY of what will come about in iraq and an increasing amount of them fear our "lack of Support" is becoming a much bigger factor. What is it going to take to turn this nightmare around. I'm not too much concerned about IDCC but the big picture of the market might hold us back when the magic days of IDCC/ERICY/NOK hit in the future.
Jimlur...Might you let us know if he had any feelings regarding IDCC these days...He dropped off the screen too quick....
Ranger, don't you think indeed that is the strategy for ERICY in HRS case. As it stands, "A Loss", as it stands what $61 mil, Judge Lynn could theoretically turn it into what, $180 mil. If ERICY & HRS counsel/mgmt continue to talk and whittle it down to say $40 mill if ERICY gives up their right to appeal, I think Judge Lynn would be happy to let them go on their merry way. ERICY doesn't extend their neck that much further ($180 mil), HRS gets their cash NOW, and Judge Lynn looks like she solved another one. Who loses? Would ERICY take the same approach to IDCC with much higher stakes involved? I don't know, it probably comes down to how likely they feel Howard would be to "bargain down" should ERICY lose. Pay me now or maybe pay me later....everyone's a gambler in this game no matter how you look at it.
teecee, so I guess this would be huge fuel to the fire if something VERY positive came out soon. One of these days...
mschere....you should not have posted that, it would have been interesting to see if one of our QCOM fans would have brought that to the board. LOL
News..we need it terribly, I have never seen so much bickering back and forth between good posters. Hope someone finds that HL report soon so we can get into something else.
Web Phones Take Wing
Now, cell phones can deliver nifty Net services fast, and Americans are signing up by the millions
From Business Week (interesting to see what the popular media is saying about this; it's encouraging when BW finally recognizes wireless data as a reality-- even though they mix wi-fi with wide area service, and they don't mention cdma. Now wireless data will finally become a must-have for all those MBA's. BR)
http://www.businessweek.com/@@KE98ZmUQkyxtJggA/premium/conte...
Perhaps you live in a place like Lakewood. There, business execs use their wireless phones to grab e-mail from the back seat of a cab. At their suburban homes, kids use cellular phones to play games while sitting on front stoops. And on weekend camping trips, families pull color Internet images of news and sporting events via their mobile handsets.
A scene from some science fiction flick? Well, sort of. Lakewood was the fictitious everytown the folks at Sprint created on a Las Vegas stage in January, 2002, to help paint a picture of our wireless future. I didn't buy it then. But a year later, I'll admit, aspects of Lakewood's improbable wireless culture are popping up all across America. "It really is beginning to take off," says Jane
Zweig, chief executive of wireless consultants Herschel Shosteck Associates.
The era of wireless data has arrived. No, you can't put the equivalent of a high-powered Dell PC (DELL ) in your pocket. You can, however, connect to the Internet with a cell phone, download and play games and music, store color photos, and send and receive e-mail--with attachments.
AT&T Wireless Services (AWE ) and Sprint PCS (PCS ) have experimented with mobile data service in the past, but it has been a slow, cumbersome experience for users. All that changed last year when most of the major wireless providers began marketing a faster, more effective data service called 2.5G, shorthand for wireless service with more data capacity than the previous voice-only generation of service.
ZAPPING DATA. The new technology zaps bits of data--the building blocks of games, e-mails, and funky ring tones--at about 40 kilobits to 60 kilobits per second. At that clip, cell phones approach the pace of most dial-up PCs. Two wireless players, AT&T and T-Mobile USA, also sells an even swifter service dubbed Wi-Fi, which lets laptops and handhelds gallop the Net at speeds 20 times faster than most home systems.
While nifty, these services have not yet achieved true bliss. In some neighborhoods, carriers haven't built enough towers to avoid gaping holes. Data sessions drop, just as cell-phone calls do, and they're often slower than advertised. As I tapped into wireless data networks, my experience was sometimes painfully reminiscent of the days when cellular phones would dawdle along at 10 kbps.
Despite the pitfalls, today's data service is gaining traction. At the end of 2002, some 22.5 million mobile-phone subscribers said they use their phones to connect to the Net, up from 9 million in 2001, according to researcher eMarketer. What's luring so many people? The carriers unleashed new phones last year with fancy color screens and improved Web browsers. "The magic formula for wireless data is color screens and compelling applications," says Scott Ellison, the wireless program director at researcher IDC. "The industry finally got those right."
Nothing fits better with the color screens than games. Seven million wireless users in the U.S. paid to download a game to their phone in 2002, according to IDC. This year, gamers should nearly double, to 13.3 million. A version of the game Wheel of Fortune was pre-loaded on my Motorola T720 from Verizon Wireless. Sprint phones come with demos of games like Monkey Ball and Space Invaders. Additional downloads cost $1 to $5 per game. And beware: Some of these dollops of fun expire after a few weeks. True, most of the games are downloaded by teens, but operators haven't forgotten adults. On a recent bus trip from Whistler ski resort to Vancouver, B.C., my wife grabbed the T-Mobile Pocket PC phone I was testing and played an old favorite, Solitaire.
Games may grab you, but the biggest wireless data hit has been messaging. Sending text, photos, and sound bites have caught on like a new Bon Jovi single. Already, 13.5 million wireless users--10% of the total--regularly tap short messages--"Whassup?" or "I luv u!"--and zap them along with a downloaded photo of, say, Bon Jovi himself. "Messaging is three to four times quicker than it used to be," boasts Sprint PCS President Len Lauer.
The messages don't have to be short, either. In an effort to nab lucrative business customers, Sprint and others offer a suite of specially designed services targeting business enterprises. The carriers work with enterprises to set up a secure connection between employees' mobile phones and companies' corporate e-mail systems. That way, workers can even exchange e-mails with files attached.
If wireless data phones have a weakness, it's browsing the Web. Punching in a Web address on a tiny phone is no cinch. To help, operators are preloading phones with an assortment of popular sites: News from CNN, sports from ESPN, weather, horoscopes, and more.
Aric Saunders is amazed by how easily he gets Web information on his phone. The 22-year-old loan officer for Hawaii HomeLoans uses his Sprint data phone to download financial news and visit his company's Web site. But the clincher came a few weeks ago while he was shooting the breeze with a buddy. They got into a debate about the distinction between arteries and veins. Saunders settled the dispute by connecting to Encyclopedia Britannica using his Sprint phone. Within seconds, he found that arteries carry blood away from the heart and veins take blood back. "The service has a ton of upside," he says.
I didn't always have as much luck. While I was showing off the Sprint PCS service to friends at a midtown Manhattan restaurant, the phone could not connect to the digital network that enables the new technology. And using my T-Mobile phone to log onto CNN from my living room in Chicago took minutes rather than seconds.
It might take years before traditional phones can surf the Net at lickety-split broadband speeds. That's why select operators have introduced a supplementary service, dubbed Wi-Fi, for true high-speed needs. For about $50 a month, you can slip a rectangular data card into your laptop or a handheld PC and cruise cyberspace at a cat-quick 11 megabytes per second--faster than a broadband connection.
The catch: You can't use this service everywhere. T-Mobile and AT&T Wireless are currently the only cellular operators offering it, though others are sure to follow soon. Plus, Wi-Fi service works only in small zones called hot spots--certain airport lounges, hotels, and some 2,200 Starbucks coffee houses. Jon Ramer, a Seattle entrepreneur, regularly darts into a Starbucks to talk with clients by cell phone while he navigates around Web sites on his laptop. One day soon, as more phones become Wi-Fi compatible, Ramer won't need two devices. With much of America already looking like data-savvy Lakewood, that day when your phone hums at Wi-Fi speed shouldn't be far off.
By Roger Crockett
Amen Loop, In my opinion you are all over it. People that think we are winning the war on terrorism because buildings aren't crashing down are wrong, at the moment they are doing a superb job of effecting everyone in this country...and that sucks!!
Jimlur...Why would she only give you part of the answer is your question. Do you really think that if the answer was "we are finalizing a contract, a settlement, or someone has issued a complaint against our compliance" she would tell you? If I intimated she LIED I certainly retract that, I will simply state again it is MY OPINION, that there is more to it and maybe more than she could actually tell you at this point in time. This isn't meant to be negative at all, it's just a difference in opinions. Maybe I have just become so skeptical (due to my own unfullfilled expectations re: IDCC)that I question everything. I should just be happy that they gave us more information , right.
Loop, I very much appreciate your input...but as strongly as could state in my post it is MY OPINION there is more than than meets the eye. I am not accusing them of being dishonest I just think there is more to it, I might be completely incorrect.....regardless I certainly am not going to make a big issue out of it. I was happy Janet at least acknowledged it and gave an explanation, as I said in the post earlier no way do I think its negative and I will keep my GTC buys in for that very reason.
OT: AFter hours here....Aybody own Nortel these days. I owned a couple years back but noticed today they are down to $2.04 a share....I owned a few years back from about 25 to 40...and I think it hit nearly 100 after I got out. Blows my mind its at $2 bucks...
ams13sag, we don't often agree but it looks like you kind of have that same feeling..time will tell...
Jimlur...thanks for the report, however, I think she only gave you a partial answer. I think she is giving just a small piece (Which is fine)to what it is really about. I find it hard to believe the SEC even knows we exist (well not quite to that extreme) but even more so wanted "more" regarding an old filing?! NOT, I don't believe it! I will make someone a little bet that there is much more to this and we will see where it fits within the next 60 days. Just my OPINION, and I know less than the rest of ya. I do have my line in the water as I certainly don't see this as bad.
Good Morning All, well now that we have had the weekend to speculate on the possibilites surrounding the SEC filings, I have one question. How likely is it that IDCC IR will answer any further questions on WHY these were filed at this time?
Ellis, not many of us have been around tonight, I just checked in after I got back from dinner and WOW!!! If everyone was watching this thing tonight we couldn't get a word in edgewise!!!! Here's hoping our time is VERY near now. I never wished a weekend would go by so fast....