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'QualSoft' the next force in the mobile multimedia battle?
MS and Qualcomm join forces to challenge Nokia
http://www.theregister.co.uk/2006/05/08/microsoft_qualcomm_alliance/
By Wireless WatchPublished Monday 8th May 2006 11:47
Qualcomm's last major venture with Microsoft was Wireless Knowledge, a failed foray into mobile enterprise email that nevertheless highlighted the companies' ability to think ahead of major wireless trends.
The two giants' new collaboration is more ambitious and has far greater disruptive potential, offering a tightly integrated combination of Windows and CDMA or W-CDMA that does not only cut time to market for ODMs, but will produce the first 3G Windows smartphone and a strong multimedia device platform that could build a bridge to the mainstream PC and IPTV worlds for CDMA operators, and therefore strengthen their fixed/mobile convergence hands, while boosting Qualcomm’s already advanced multimedia content capabilities.
Microsoft may be the weakest of the high level operating systems in mobile phones, but it has huge power in other key convergence platforms such as home and portable media centers; and it brings a credibility boost to Qualcomm's bid to extend its reach beyond the warmth of its CDMA homeland - a boost that could, in future, stretch to support for the chipmaker in the brewing battle over OFDM broadband wireless platforms.
There are many complications in the way of any attempt to create a Wintel-style alliance for the next generation mobile world, a possible extension of the current handset and patents agreement.
One is how far Qualcomm's own software ambitions, enshrined in the Brew environment, will have to be adapted or subsumed to Microsoft; another is the relationship with Intel, Microsoft's most important partner and Qualcomm’s beête noir. Nonetheless, the two new allies have made an important first step in what could prove a major force in mobile multimedia, and a challenge to their mutual enemy, Nokia.
Qualcomm and Microsoft have a lot in common, and not just intense scrutiny by anti-trust authorities and huge market influence. They share some key strategic goals, notably leadership of the emerging mobile content and media industry, and control of the device architectures for this sector. They are both venturing out of markets where their dominant position is almost unchallengeable in to new waters where they face different and powerful competitors.
This means they also share several common enemies, most importantly Nokia. So, while the close alliance hinted at by last week's announcement of a smartphone collaboration may be seen in parts of the wireless industry as the gathering of the forces of darkness, it is also highly pragmatic and shows the two giants huddling together for warmth as they face increasingly critical challenges in the world of ubiquitous connectivity and mobile multimedia.
Microsoft is looking for a new familiar that can carry Windows into its chosen new markets, in the same way that Intel does in the PC world, but has largely failed to do in mobile media; and Qualcomm, beset by an unprecedented alliance of its opponents, will welcome a powerful new friend to strengthen its current CDMA platforms and even add credibility to its attempts to take a leading role in the next wireless generation, dominated by OFDM technologies.
The handset deal
So could Wintel morph, in the wireless world, into QualSoft?
Certainly, even a surface reading of the new agreements indicates that this is an important coupling, and that is without taking into account the likely extensions of this initial collaboration that will take place over the coming months and years.
Qualcomm will "share information" (and patents) about its CDMA and W-CDMA chipsets with Microsoft in order to support the rapid development of a Windows Mobile smartphone bases on these designs, with the first chipsets shipping in the second half of the year. The work will be centered on the Qualcomm Convergence Platform MSM 7xxx architecture.
This gives Microsoft a new chip partner for the Windows Mobile operating system and for its own smartphone architecture, which currently owes almost all its limited success to ODMS – notably Taiwan's HTC – making PDA/cellphone hybrids based on Intel silicon (Texas Instruments does support Windows Mobile but this combination has not been actively promoted).
The Qualcomm alliance means Microsoft could target the CDMA sector, and also produce a 3G Windows smartphone for WCDMA. Also likely to be attractive for Windows Mobile, whose stronghold is the traditional territory of the enterprise PDA, is Qualcomm’s advanced work on integrated chipsets supporting 3G and Wi-Fi.
Most tier one handset makers are suspicious of Microsoft, having seen its heavy handed treatment of its hardware partners in the PC world, and so the software giant is heavily reliant on white label handset manufacturers, such as HTC, and on creating designs that appeal directly to the operators.
In many ways, Qualcomm has the same approach in CDMA, regularly overcoming OEM wariness by winning operator support directly, because it understands what those carriers need to deliver to their consumers (the recent adoption by new customer O2 of its uiOne software platform is a prime example).
The creation of an end-to-end reference design that ticks plenty of operator boxes – familiar interface for the enterprise space, strong multimedia capabilities and so on – and provides quick time to market for handset ODMs, would strengthen both parties. Could it even, down the line, provide the basis for the much discussed entry of Microsoft into the hardware device market to take on Apple with its own branded mobile media products (a move given credence last month by an interview with CEO Steve Ballmer in German newspaper Die Welt)?
Targeting a converged world
However broad Microsoft’s portable device ambitions, it undoubtedly needs to strengthen its hand in mobile products beyond the traditional enterprise executive base, and to extend its progress in multimedia content on other platforms – PC-based media centres, IPTV and so on – to the wireless handhelds.
This is not just because, in numeric terms, these will represent the largest target market for its software within a few short years, but also because service providers will increasingly look to deliver the same content and interfaces across a variety of different networks and devices, from set-top boxes to smartphones, and will look to a unified software architecture across the board.
This is where Microsoft is vital to Qualcomm. On the surface, the initial deal between the companies looks like a PR boost for the chipmaker, but with more substantial significance for the software house. In the burgeoning world of convergence, though, all mobile-only specialists risk being consigned to a backwater when it comes to the plans of the large converged operators.
Mobile companies need to ensure their technologies are relevant to partners in the wireline and fixed worlds too, if they are to take part in plum contracts for end-to-end, multi-platform media systems – which will be the most attractive area of telecoms spending around the turn of the decade.
Nokia and Motorola have been busily expanding their activities in Wi-Fi, broadband and enterprise partnerships and other areas to, as Nokia puts it, turn the mobile handset into the key hub device for the whole converged experience. Mobile-only operators are looking to deliver fixed services or partner with wireline providers.
Among the chipmakers, Texas Instruments is highly advanced with a multimedia vision that spans the whole gamut of content platforms, and Intel, of course, is entering the mobile world with its feet already firmly on the other side of the fence.
Qualcomm, however, despite its dominance of the mobile 3G chipset world, has little influence on other media platforms. Microsoft brings it the option of a fully fledged operating system and content environment that could be unified with those of other, non-mobile devices to be part of a converged system.
Otherwise there is the risk that would-be quadruple play operators, and their integrators and vendors, will lose confidence in CDMA as part of a fixed/mobile system, since it will offer a mobile experience that is completely different to that on the fixed units. Or they will turn to phonemakers that are offering such a unified experience, but are not using Qualcomm chipsets – a wide range of choices in W-CDMA, and even in CDMA2000, there are devices from the Nokia/TI/Sanyo collaboration, a very black outcome for Qualcomm, which despite all its famous patents revenues, still has chip sales at the heart of its business.
And increasingly, the engineering excellence and execution effectiveness that do underpin its products are not enough. The chipmaker, as TI knows very well, has to offer a complete experience.
This, and the need for more sophisticated data and media functionality on phones, has brought PC-style operating systems and software architectures into the high end of the mobile world to replace the cut-down, proprietary OSs that run the bulk of cellphones. Symbian OS, Windows Mobile and mobile Linux are the main contenders in the GSM/GPRS and W-CDMA world, with Java J2ME and, just emerging, mobile Ajax the key unifying software environments.
In CDMA, though Java has gained ground as a software distribution platform, particularly since Qualcomm supported it in its own Brew software architecture, the classic OSs have been far less important, despite Nokia's launch of the first CDMA Symbian phone a year ago and some progress by Linux.
Microsoft may well see this as territory that is still open for grabs and where Windows will face less threat as the high level OS of choice. Nokia (now joined by Sanyo), the only major handset maker seeking to build a CDMA phone business without using Qualcomm chips, would naturally support Symbian and Java on its models, but its market share currently remains small.
For the other CDMA phonemakers, if Qualcomm does a good job of creating an optimized software environment for multimedia based on Windows, there would be little reason not to adopt it for high end models. This would give Qualcomm a high level software architecture at a stroke, and given Microsoft's need to make progress in this market, it would have greater influence over its partner – ironically, given the usual reasons to avoid working with the Redmond giant – than it could hope for in the fragmented world of mobile Linux or the Nokia-dominated Symbian platform.
All this would also serve to wrong foot the common enemy, Nokia. In the long term, the Finnish giant aims to usurp the position of the Microsoft- based laptop as the primary enterprise client, and it also seeks to reduce the power of Qualcomm in mobile networks, in order to reduce royalty payments on the CDMA giant's famous patents and cut the cost and therefore economic viability of 3G systems and beyond.
What about Intel and Brew?
There are two twists in this tale – Intel and Brew. Partnering with Microsoft makes good sense for Qualcomm – it offers the software house as much as it gets back in the mobile world, and its ogres are not Microsoft but Intel and Nokia/TI.
Microsoft too has reasons to put pressure on Nokia, and it does not need to worry too much about antagonizing TI, which is a pragmatic company that will support any technology that generates revenue for its advanced platforms.
But Intel is the company on whose architectures the bulk of Microsoft's base still depends, and – as Intel itself flirts with new partners, from Nokia to the WiMAX community – it has the power to put pressure on Microsoft as no other company can.
In their traditional markets, the two remain inextricable and inter-dependent, and neither will do anything to damage an alliance that has worked extraordinarily effectively. But as those markets become, gradually, a smaller percentage of the hi-tech whole, the Wintel coupling may prove, in newer sectors, a square peg in a round hole.
But the shift of both members towards new ecosystems and sometimes conflicting friendships will be as slow and fraught as that of any twin siblings seeking to make their own way in the world.
The other wrinkle is Qualcomm's own ambition as a software house. The chipmaker, like Nokia, has recognised that it can boost its margins and its overall control of its market by offering a complete environment, including software, to its customers, and that many of the factors that make a difference for operators, such as easily customisable user interfaces and over the air distribution/maintenance, lie in software – but software that can still deliver more effectively when integrated with and optimized for the hardware architecture.
The cornerstone of this strategy has been Brew, the content download platform, and Qualcomm has added significantly to this over the past year with acquisitions such as Trigenix and elata, which have contributed graphics rich, customisable user interface and multi-network content delivery capabilities.
Such moves have strengthened CDMA and extended the appeal of Brew to other platforms, notably W-CDMA, giving it an entry to previously closed markets such as Europe, as the O2 deal showed. In future, the same functionality can be adapted for other platforms such as dual mode cellular-Wi-Fi and OFDM-based networks.
Most recently, Qualcomm formed a venture with Chinese company TechFaith to enhance user interface techniques to market in China and elsewhere. The sticking point for the Brew family, as for other Qualcomm technologies, is that however functional they may be, they carry the burden of royalties – in Korea, for instance, the major cellcos, backed by the government research institute, created a Brew alternative, WIPI, to reduce their payments.
So in optimising Windows for its chipsets, will Qualcomm start to sideline its own Brew technologies in key emerging markets, or will we see some integration of the two over time, to strengthen the mobile aspects of the Microsoft platform? Not that a Windows-Brew convergence gets round the royalties question, of course, but it could broaden the mobile reach of both platforms and give them a leg up in the battle to dominate the keymarket for multimedia handsets and other devices.
The partners are already talking in terms of offering handset makers not just a reduced time to market for CDMA/Windows devices – by a factor of "weeks to months" over integrating the technologies themselves – but also supporting a range of media applications including mobile TV.
Future alliances and OFDM?
Which brings us to the thorniest issue for Qualcomm right now – how to maintain its powerful position in the wireless world once that world shifts steadily away from CDMA technologies and towards OFDM?
We have seen Qualcomm building up its own OFDM arsenal, to challenge the front runner in the field, WiMAX, and also kicking off the bid to assert intellectual property rights in WiMAX itself.
At this early stage, when there are no real products based on the mobile variant of WiMAX, 802.16e, this is largely a game of bluff and confidence. WiMAX appeals to some vendors and operators as a mobile platform that could potentially exclude Qualcomm from the game altogether; Qualcomm is determined to throw confusion and doubt over that view and dent confidence in 802.16e, while offering its own OFDM roadmap, based largely on the Flash OFDM technology it acquired with Flarion and its own FLO broadcasting system.
Support from Microsoft for these technologies would be a valuable confidence boost, regardless of any revenue it might generate. Microsoft, though enthusiastic about the impact Wi-Fi can have on the rate of PC upgrades and the adoption of other Windows devices, has not shown its hand on WiMAX at all, another sign of a divergence from the Intel path.
Microsoft support for a Qualcomm technology in this area, or licensing of its intellectual property, would be a huge boost in terms of market credibility, despite the fact that Microsoft’s influence on mobile equipment makers remains peripheral.
The most likely cooperation in this area, in the short term, may centre on the MediaFLO mobile broadcasting system. With Intel and Dell talking up TV to the laptop, and Microsoft fighting hard in the wireline IPTV space, broadcasting cannot be ignored and, as with MSN, Microsoft may seek its own channel to market rather than merely supporting mobile TV standards in Windows and its other platforms.
In that case, Qualcomm’s 700MHz MediaFLO broadcasting network in the US, combined with Windowsthat boast a unified interface with PC and IPTV systems, could be a strong option for the US market.
Much of this is speculative at this stage, and the partnership of two powerful companies that are under unprecedented pressure can be seen either as a strong response to threat or an alliance of desperation. But even before we consider next generation technologies, the combination of Windows and CDMA will provide phonemakers and operators in the CDMA sector with a new bridge to the convergence mainstream, and offer an influential combination for the emerging mobile multimedia market.
The ball is now firmly back in Nokia's court.
Other Qualcomm developments
Also last week, Qualcomm claimed the first commercial chipset supporting HSUPA (High Speed Uplink Packet Access), an extension of the W-CDMA standard that speeds upload data rates and should be deployed by 3G operators in 2007 onwards.
The MSM7200 chipset is targeted at low latency applications such as multiuser gaming, push to share and VoIP and supports the Multimedia Broadcast Multicast service (MBMS), the standard for television over 3G networks.
The MSM7200 offers downlink speeds up to 7.2Mbps and 5.76Mbps on the uplink, says Qualcomm, and so competes with wireline broadband speeds. The new chipset is part of Qualcomm’s Convergence Platform of dual-core solutions, aimed at advanced multimedia applications.
At the other end of the handset scale, and seeking to counter perceptions that CDMA is a high cost solution because of the patents costs, CEO Paul Jacobs told last week's analyst day that CDMA phones are winning in low cost markets like India, even in the sub-$50 category.
Indeed, the chipmaker raised its third quarter earnings forecasts last week largely on the basis of better than expected sales of low end models, saying the company's per-share earnings should range between 38 cents and 40 cents, up from an earlier estimate of 36 cents to 38 cents. Revenue should meet or exceed the high end of earlier guidance of $1.77bn-$1.87bn.
While the GSM Association’s Ultra Low Cost Handset programme has focused on the economies of scale that the huge GSM market enjoys, its counterpart, the CDMA Development Group, argues that aggregating the features and options so that manufacturers only have to build to one particular core design is the key to low cost handsets.
In 2005, the bill of materials cost for a low end handset was about $39, according to IC Insights, and phonemakers believe they can get that below $25 this year.
Also at the analyst day, president Steve Altman said a settlement is "likely" in the company's ongoing royalties dispute with Nokia, which has joined five other mobile manufacturers in filing anti-trust complaints with the European Commission.
Earlier in the week, CEO Paul Jacobs described ongoing license agreement negotiations with Nokia, which the company had previously warned could hit difficulties, as the most significant challenge facing the company in the coming months. The agreement expires in April 2007.
Flarion patents
Qualcomm’s recent statements have been designed to convince the markets that it has a strong patents hoard in OFDM, and one that is likely to impact on WiMAX.
The latest strike comes in the shape of a $205m payment to former shareholders in Flarion, which Qualcomm acquired for its OFDM technologies in January for $600m, already a high price for a start-up whose revenues were estimated at less than 5% of that figure.
At the time, a further $200m was built into the acquisition deal based on future performance, and this pay-out has now been triggered by the issuance of new patents to Flarion.
"The rapid issuance of these patents is yet another indicator of Flarion's strength as an OFDMA innovator and further enhances Qualcomm's leadership position in the wireless industry," Qualcomm president Steven Altman said in a statement.
Microsoft and QUALCOMM to Revolutionize the Next Generation of Smartphones
Thursday May 4, 9:00 am ET
Collaboration Integrates Support for Windows Mobile Operating System on QUALCOMM Chipsets
http://biz.yahoo.com/prnews/060504/sfth051.html?.v=53
REDMOND, Wash. and SAN DIEGO, May 4 /PRNewswire-FirstCall/ -- QUALCOMM Incorporated and Microsoft Corp. (Nasdaq: MSFT - News) today jointly announced a collaboration to enable the porting of the Microsoft® Windows Mobile® operating system to QUALCOMM's Mobile Station Modem (MSM) chipsets. The companies' collaboration will enable device manufacturers to develop affordable, feature-rich and attractive Windows Mobile-powered phones with MSM chipsets while shortening their product development times. Support for the Windows Mobile platform on QUALCOMM's highly integrated MSM solutions also gives users extended battery life while running a wide variety of business and entertainment applications, such as Microsoft Office Mobile and Windows Media® Player Mobile, along with third-party offerings.
"Having support for Windows Mobile on QUALCOMM's MSM chipsets will bring a familiar software experience to the next generation of smaller, lighter phones with more appealing form factors," said Dr. Sanjay K. Jha, president of QUALCOMM CDMA Technologies. "Our customers will be able to more quickly design cost-effective and innovative devices that harness the power of our Convergence Platform dual-processor solutions."
"We know that mobile operators are eager to attract and retain subscribers with an affordable portfolio of Windows Mobile-powered devices. More and more of their customers want capabilities such as mobile e-mail and Office productivity programs in a familiar and easy-to-use software experience," said Pieter Knook, senior vice president of the Mobile and Embedded Devices Division and Communications Sector Business at Microsoft. "QUALCOMM's innovative hardware platform coupled with our versatile software experience does just that. It helps device-makers and mobile operators sell a broader range of mobile devices that generate increased revenue."
Microsoft and QUALCOMM are fully integrating and testing support for the Windows Mobile operating system with Convergence Platform 7XXX-series MSM chipsets from QUALCOMM, which feature a dual-core architecture with an integrated ARM11 applications processor and ARM9 modem processor for superior performance. The testing and integration speeds time to market by enabling handset manufacturers to more easily develop Windows Mobile-powered devices featuring the Convergence Platform MSM chipsets by removing some custom development work that would otherwise be required. In addition, device-makers can take advantage of the CDMA2000 1XEV-DO and UMTS modem features as well as the hardware-accelerated multimedia capabilities, multimegapixel camera support, 3-D graphics and Assisted-GPS engines from the Launchpad suite of technologies integrated with Convergence Platform MSM chipsets.
QUALCOMM is expected to begin offering support for Windows Mobile 5.0 on Convergence Platform MSM chipsets in the second half of 2006. In addition, Microsoft will incorporate a new Board Support Package and Radio Interface Layer for QUALCOMM's Convergence Platform solutions into future distributions of the Windows Mobile platform. Phones leveraging MSM solutions supporting the Windows Mobile platform are forecasted to be available in 2007.
About QUALCOMM
QUALCOMM Incorporated (Nasdaq: QCOM - News; www.qualcomm.com) is a leader in developing and delivering innovative digital wireless communications products and services based on CDMA and other advanced technologies. Headquartered in San Diego, Calif., QUALCOMM is included in the S&P 500 Index and is a 2005 FORTUNE 500 company traded on The Nasdaq Stock Market under the ticker symbol QCOM.
About Microsoft
Founded in 1975, Microsoft is the worldwide leader in software, services and solutions that help people and businesses realize their full potential.
Except for the historical information contained herein, this news release contains forward-looking statements that are subject to risks and uncertainties, including the Company's ability to successfully design and have manufactured significant quantities of CDMA components on a timely and profitable basis, the extent and speed to which CDMA is deployed, change in economic conditions of the various markets the Company serves, as well as the other risks detailed from time to time in the Company's SEC reports, including the report on Form 10-K for the year ended September 25, 2005, and most recent Form 10-Q.
NOTE: Microsoft, Windows Mobile and Windows Media are either registered trademarks or trademarks of Microsoft Corp. in the United States and/or other countries.
QUALCOMM is a registered trademark of QUALCOMM Incorporated. Launchpad, Mobile Station Modem and MSM are trademarks of QUALCOMM Incorporated.
ARM9 and ARM11 are registered trademarks of ARM Limited.
CDMA2000 is a registered trademark of the Telecommunications Industry Association (TIA USA).
The names of actual companies and products mentioned herein may be the trademarks of their respective owners. All other trademarks are the property of their respective owners.
--------------------------------------------------------------------------------
Source: Microsoft Corp.
Fears over Qualcomm's first patent deal for WiMax product
By: Nancy Gohring
http://www.itworldcanada.com/a/Daily-News/e220c92c-ad39-472e-9b15-da98bbe4de7e.html
IDG News Service (Dublin Bureau) (01 May 2006)
Qualcomm Inc. has signed its first licensing agreement for patents it owns covering broadband wireless technology, the company said Thursday in an announcement some WiMax observers have been dreading.
Qualcomm signed the deal, which covers OFDM/OFDMA (Orthogonal Frequency Division Multiplexing/Orthogonal Frequency Division Multiplex Access) technologies, with Soma Networks Inc., a developer of broadband wireless and WiMax equipment. Qualcomm acquired the technology along with Flarion Technologies in an agreement that closed earlier this year. At the time of the acquisition, some vendors began to worry if Qualcomm, known for its vigorous defense of patents covering CDMA (Code Division Multiple Access) technology, had acquired technology crucial to WiMax.
Soma said that the agreement ensures that it has the rights to use Qualcomm's intellectual property within a new platform introduced by Soma that is based on the mobile WiMax standard.
The announcement is essentially a statement from Qualcomm that it plans to enforce its patents, said Caroline Gabriel, an analyst with Rethink Research. "It did not need to announce this since licensing deals are usually confidential, so I think it's certainly a public challenge to the WiMax players," she said.
Alvarion Ltd., one of the largest broadband wireless vendors in the market, has not been contacted by Qualcomm regarding its WiMax products, said Rudy Leser, vice president of strategy and marketing for Alvarion. He said Alvarion has spoken with other industry leaders including Intel Corp. and they believe that Qualcomm's patents aren't relevant to the WiMax standards.
He said that Qualcomm may be looking to create a technology, reliant on its patents, that competes with WiMax, much like Qualcomm did when it developed CDMA to compete with GSM (Global System for Mobile).
Qualcomm could not be reached for comment.
WiMax is a standard developed over the past few years that can be used to deliver broadband Internet access wirelessly and has been heavily backed by Intel. The WiMax Forum, an industry group backing the technology, has asked members to disclose any relevant patents they have in an effort to control the patent licensing cost for vendors making WiMax equipment. Qualcomm is not a member of the WiMax Forum.
WiMax vendors and the WiMax Forum have feared that an unexpected license requirement could increase the cost for vendors to build their equipment, a cost that would likely be passed on to end users.
Operators have launched networks based on WiMax in countries including Ireland, France and the U.S. Most of the leading cellular vendors including Nortel Networks Ltd., Telefonaktiebolaget LM Ericsson and Alcatel SA are building WiMax equipment.
QUALCOMM to Host Analyst Meeting
http://biz.yahoo.com/prnews/060428/laf048.html?.v=41
QUALCOMM Incorporated (Nasdaq: QCOM - News)
Friday April 28, 3:52 pm ET
Analyst Meeting
QUALCOMM Incorporated will hold an analyst meeting in New York, New York on Thursday, May 4, 2006 starting at 9:00 a.m. (EDT). This meeting is by invitation only for financial analysts and institutional investors.
Please visit our website for more information www.qualcomm.com/ir
Webcast and Supplemental Information
The analyst meeting will be webcast live via QUALCOMM's Investor Relations web site at www.qualcomm.com.
The meeting will include a discussion of non-GAAP (Generally Accepted Accounting Principles) financial measures. Information reconciling these non-GAAP financial measures to QUALCOMM's financial results prepared in accordance with GAAP will be posted on QUALCOMM's Investor Relations web site at www.qualcomm.com upon commencement of the meeting.
Rebroadcast
The webcast will be available on QUALCOMM's Investor Relations web site at www.qualcomm.com for one month following the live event.
Historical news releases and financial documents are available on the Company's web site at http://www.qualcomm.com.
QUALCOMM Contact:
Bill Davidson
Vice President, Investor Relations
1-(858) 658-4813 (ph) 1-(858) 651-9303 (fax)
e-mail: ir@qualcomm.com
--------------------------------------------------------------------------------
Source: QUALCOMM Incorporated
Qualcomm challenges WiMax players with deal
Licensing pact with Soma Networks is proof that company will enforce its patents
By Nancy Gohring, IDG News Service
April 28, 2006 E-mail Printer Friendly Version
http://www.infoworld.com/article/06/04/28/77868_HNqualcommwimax_1.html?source=rss&url=http://www....
Qualcomm Inc. has signed its first licensing agreement for patents it owns covering broadband wireless technology, the company said Thursday in an announcement some WiMax observers have been dreading.
Qualcomm signed the deal, which covers OFDM/OFDMA (Orthogonal Frequency Division Multiplexing/Orthogonal Frequency Division Multiplex Access) technologies, with Soma Networks Inc., a developer of broadband wireless and WiMax equipment. Qualcomm acquired the technology along with Flarion Technologies in an agreement that closed earlier this year. At the time of the acquisition, some vendors began to worry if Qualcomm, known for its vigorous defense of patents covering CDMA (Code Division Multiple Access) technology, had acquired technology crucial to WiMax.
Soma said that the agreement ensures that it has the rights to use Qualcomm's intellectual property within a new platform introduced by Soma that is based on the mobile WiMax standard.
The announcement is essentially a statement from Qualcomm that it plans to enforce its patents, said Caroline Gabriel, an analyst with Rethink Research. "It did not need to announce this since licensing deals are usually confidential, so I think it's certainly a public challenge to the WiMax players," she said.
Alvarion Ltd., one of the largest broadband wireless vendors in the market, has not been contacted by Qualcomm regarding its WiMax products, said Rudy Leser, vice president of strategy and marketing for Alvarion. He said Alvarion has spoken with other industry leaders including Intel Corp. and they believe that Qualcomm's patents aren't relevant to the WiMax standards.
He said that Qualcomm may be looking to create a technology, reliant on its patents, that competes with WiMax, much like Qualcomm did when it developed CDMA to compete with GSM (Global System for Mobile).
Qualcomm could not be reached for comment.
WiMax is a standard developed over the past few years that can be used to deliver broadband Internet access wirelessly and has been heavily backed by Intel. The WiMax Forum, an industry group backing the technology, has asked members to disclose any relevant patents they have in an effort to control the patent licensing cost for vendors making WiMax equipment. Qualcomm is not a member of the WiMax Forum.
WiMax vendors and the WiMax Forum have feared that an unexpected license requirement could increase the cost for vendors to build their equipment, a cost that would likely be passed on to end users.
Operators have launched networks based on WiMax in countries including Ireland, France and the U.S. Most of the leading cellular vendors including Nortel Networks Ltd., Telefonaktiebolaget LM Ericsson and Alcatel SA are building WiMax equipment.
Microsoft's European Hearing and America's Future
E-Mail Article
Print Version
By Sonia Arrison
TechNewsWorld
04/28/06 5:00 AM PT
http://www.technewsworld.com/story/50207.html
What many countries are calling "competition policy" is starting to look a lot like anti-Americanism that specifically targets successful U.S. companies. If so, that is a disastrous outcome that doesn't bode well for the future.
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The European Court of First Instance (CFI) buzzed with energy this week as Microsoft (Nasdaq: MSFT) and the European Commission squared off over a damaging 2004 ruling that, along with a fine of 497 million euros (US$613 million), creates a new Microsoft product and exposes the company's valuable intellectual property. The circus-like hearing holds wide-ranging implications for American businesses.
On the first day, news crews and a gaggle of reporters showed up to watch the attorneys, some in horsehair wigs, discuss whether or not Microsoft abused its market power in the media-player market. Although Microsoft demonstrated that other media players exist and many consumers are using them, the EC continued to insist that Microsoft needed to be reined in.
The remedy that the EC concocted ordered the removal of 200 files from Windows, and created a new product called "Windows XPN." In addition to naming the product and deciding which files to remove, the Commission also determined the size and font of the packaging. But consumers have not embraced this foray into software production by European bureaucrats.
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Success Can Be Dangerous
Since the EC's order, Microsoft sold 35 million units of regular Windows, but only 1,787 copies of Windows without media player (Windows XPN). Of those 1,787 copies that were sent to retail shops, no one knows if any consumers have even purchased a copy and zero Original Equipment Manufacturers have installed it. That's a huge failure on the EC's part and a clear signal to the judges at the CFI to reverse the ruling.
It's unclear how many American tech executives are watching this case, but the ones who are can't be happy. That's because control and ownership of intellectual property are key elements for a successful tech business. The message that the EU regulators sent to technology companies with their 2004 ruling seems to be that success is dangerous.
The EC not only forced Microsoft to remove operating system files but also told the company to share with rivals its IP for key server software. The reasoning from the bureaucrats seems convincing at first blush.
The idea is that servers made by companies such as Sun Microsystems (Nasdaq: SUNW) and IBM (NYSE: IBM) have trouble "interoperating" with Microsoft servers. Since they have trouble communicating, the theory goes, Microsoft should provide the language so all the servers can easily talk. That's not an accurate representation of the issue and completely ignores the fact that third-party products to facilitate server discussion already exist. Indeed, as CompTIA antitrust counsel Lars Liebeler pointed out, most of the complaining companies brag in marketing materials that their servers can interoperate with Microsoft. So what is really going on?
Attack of the Clones
As Microsoft's attorneys and other American representatives told the Court, the intellectual property in question does not act like a language, but rather like DNA. That would give Microsoft's rivals the ability not to talk with them, but to clone them -- a dangerous development that should be avoided. As Jim Prendergast of Americans for Technology Leadership noted, "This portion of the remedy should be titled 'attack of the clones.'"
Then there's the argument that sharing Microsoft's communication protocols would spur innovation. To this, Microsoft attorney Ian Forrester responded that "opening up the vaults of a bank will spur economic activity." He's right that it would, but it would also discourage anyone from putting their money there. In the same vein, exposing Microsoft's intellectual property will harm investment in that area. However, the case doesn't just affect Microsoft.
If Eurocrats can force Microsoft to give up significant chunks of its valuable IP, there's no stopping them from doing likewise to other successful American companies. The next target may be Apple Computer (Nasdaq: AAPL) , which recently got in a spat with French legislators when they passed a bill to force the sharing of iTunes code. And the problems don't end in Europe.
Korea, for instance, has already sicced its competition police on Qualcomm (Nasdaq: QCOM) , Microsoft and Intel (Nasdaq: INTC) and China is starting to re-examine its antitrust laws. What many countries are calling "competition policy" is starting to look a lot like anti-Americanism that specifically targets successful U.S. companies. If so, that is a disastrous outcome that doesn't bode well for the future. America's tech community and political leaders should sit up and take notice of these developments before it is too late.
--------------------------------------------------------------------------------
Sonia Arrison, a TechNewsWorld columnist, is director of technology studies at the California-based Pacific Research Institute and author of "Canning Spam: An Economic Solution to Unwanted E-mail."
Qualcomm warns of possible breakdown of Nokia licensing talks
But chipmaker still holds patents cards
By Wireless WatchPublished Tuesday 25th April 2006 11:25 GMT
Please see link for detail:
http://www.theregister.co.uk/2006/04/25/cdma_licensing_talks/
Las Vegas blanketed with FLO technology during NAB2006
Posted: 25-Apr-2006 [Source: Qualcomm]
[Qualcomm demos MediaFLO system providing citywide multimedia content delivery to mobile handsets during NAB2006 in Las Vegas.]
http://www.mobiletechnews.com/info/2006/04/25/025853.html
Las Vegas -- QUALCOMM Incorporated announced that the Company is providing citywide coverage of FLO technology during NAB2006, April 24-27 in Las Vegas. FLO technology, a multicast innovation and key component of the MediaFLO(TM) system, is an air-interface technology designed to increase capacity and coverage, and reduce cost for multimedia content delivery to mobile handsets. The NAB2006 demonstration will feature multicast of 16 channels of QVGA-quality video content, audio content and data transmissions for IP datacasting applications across the city of Las Vegas, using two high-powered FLO transmitters. NAB2006 attendees will be able to view the MediaFLO demonstrations at the QUALCOMM/MediaFLO Booth SL2407H, in the South Hall of the Las Vegas Convention Center.
"Our demonstration at NAB2006 is intended to show how FLO technology can enable up to 16 channels of video content at QVGA quality, all while being delivered in a cost-effective manner, using fewer transmitters than competing technologies to cover an entire market."
Engineered specifically for the mobile environment, FLO technology offers several advantages over other mobile multicast technologies, including higher-quality video and audio, faster channel switching time, superior mobile reception, optimized power consumption and greater capacity than other multicast technologies.
Specific performance features of FLO technology in a 6 MHz channel include:
* Support for transmitting up to 20 streaming channels of QVGA-quality (320x240 pixels) video at up to 30 frames per second, 10 stereo audio channels (HE AAC+ parametric stereo) and up to 800 minutes of distributed Clipcast(TM) content per day (short-format video clips)
* An average channel switching time of less than two seconds
In addition, FLO technology-based multimedia multicasting will complement wireless operators' CDMA2000(R)/EV-DO and WCDMA/HSDPA cellular network data and voice services, delivering content to the same cellular handsets used on these 3G networks.
The MediaFLO system is an end-to-end solution that enables multicasting of high-quality video, audio streams, Clipcast media and IP datacasting to mobile handsets. It is comprised of the MediaFLO Media Distribution System (MDS) and FLO technology. The MediaFLO system is a manageable, scalable, subscription- based distribution system and an efficient over-the-air network solution that provides wireless operators a way to cost-effectively deliver the high-quality audio and video content their subscribers desire. More information about the MediaFLO system is available at http://www.mediaflo.com.
Huawei set to ring up 32% rise in revenue
Zhu Shenshen
2006-04-25
http://www.shanghaidaily.com/art/2006/04/25/265094/Huawei_set_to_ring_up_32__rise_in_revenue.htm
THE overseas and mobile phone business is expected to ring up a 32 percent jump year on year in Huawei Technologies' revenue this year, China's biggest private telecom equipment maker told a conference recently.
In 2006, Huawei's revenue is expected to hit US$7.8 billion with 60 percent of the income coming from overseas. In 2005, its revenue was US$5.9 billion and overseas income accounted for 58 percent, surpassing the domestic revenue for the first time, according to Huawei.
Due to continuous investment and innovation, over 100 million global subscribers are being served by Huawei's network. Its products and network equipment have been commercially deployed in more than 60 countries, the Shenzhen-based company said in a statement yesterday.
Huawei won a US$100 million deal from Oasis Sprl, the Congolese operation of Millicom International Cellular, to provide its network to them, it said yesterday.
"Overseas operational experience and strong research will help Huawei win market shares in the Chinese 3G market," said Li Xuefang, an analyst at CCID Consulting Co, a research firm under the Ministry of Information Industry.
Huawei has invested 6 billion yuan (US$750 million) in 3G, a high-speed wireless phone technology. At present, Huawei owns 5 percent of the global wideband code division multiple access, or WCDMA, patents and has permission to use patents owned by foreign giants including Nokia, Qualcomm and Ericsson, which can also use Huawei's, MII said on its Website yesterday.
Meanwhile, Huawei plans to sell 25 million mobile phones this year, more than double last year's figure. It sold 10 million handsets in the world in 2005, which doubled the previous year's level.
QUALCOMM OUTLINES PRIORITIES
http://www.mobileeurope.co.uk/news/news_story.ehtml?o=2092
Qualcomm’s ceo Paul Jacobs has said that the company has several strong European prospects for its MediaFLO technology, the rival digital mobile broadcast technology to DVB-H.
“Other things are happening in Europe where you might expect there to be a strong DVB-H market. It’s not the case Qualcomm is locked out of WCDMA markets. Qualcomm is building chip sets across both these [WCDMA, 1x] standards,” Jacobs said.
He added that the connection between WCDMA and DVB-H, “while trumpeted by the DVB-H crowd”, is not “strictly accurate”.
Qualcomm expects to make some market announcements with European WCDMA based operators to back up that confidence, he hinted.
Jacobs demonstrated FLO working over a Samsung UMTS phone, showing Verizon’s datacasting application, and the broadcast of a live baseball match.
Jacobs also said that Qualcomm was working to bring the price of a “world-mode” phone down to the mid tier. A “world-mode” phone is a phone that supports both CDMA and GSM radio access, and is aimed at CDMA users who roam a lot in GSM areas.
Although Verizon coo Lowell McAdam had told journalists earlier that such dual mode phones were easily available, Jacobs said Qualcomm’s development of the MSM6125, MSM6500 and MSM6550 chipset platforms would help bring the price of such phones down. These solutions are expected to commence sampling in the third quarter of 2006.
Jacobs also announced that this company is planning to enter the wireless LAN market by attacking the 802.11n market. Admitting the company had had no play in WiFi up to now, Jacobs said the next generation of wireless LAN would see Qualcomm enter the market.
At the moment Qualcomm is working with partners on producing two chip solutions, but clearly if the company sees a market for dual mode cellular, WiFi phones a single chip solution could be the goal.
“We have wireless WAN and now we have wireless LAN technologies,” Jacobs said.
Globalstar Announces $400 Million Financing Debt and Equity Fundraising Secures Capital for Second-Generation Satellite
Constellation and Fully Funds the Company's Future Business Plan
http://www.prnewswire.com/cgi-bin/stories.pl?ACCT=104&STORY=/www/story/04-24-2006/0004345682&....
MILPITAS, Calif., April 24 /PRNewswire/ -- Globalstar, Inc., a world
leader in providing mobile satellite voice and data services to business,
announced today that it has closed a $400 million debt and equity
financing. The financing consists of $200 million of debt in the form of a
five-year term loan and a four-year revolving credit facility, both
underwritten by Wachovia Securities. The $200 million in equity capital is
being invested by affiliates of the Thermo Companies. Minority shareholders
in Globalstar will be provided an opportunity to participate in the equity
financing.
Globalstar intends to use the proceeds of the financing, as well as
cash from its ongoing business, to fund the design and deployment of the
company's second-generation satellite constellation, upgrades to its ground
segment and the launch of eight spare satellites for its current
constellation in early 2007. The second generation satellite constellation
will continue to provide Globalstar customers with industry leading voice
quality as well as increased data speeds to both handheld and fixed
subscriber equipment. Globalstar is already capable of providing ancillary
terrestrial component service or ATC, which the FCC authorized it to
provide in January. The second-generation satellite constellation will
fully integrate ATC and ensure the company's long-term capability to
provide ATC and other integrated wireless multimedia satellite solutions.
"This financing solidifies the funding for the future strategic growth
of Globalstar. We can now implement our plans for the next generation
satellite constellation and other initiatives that will better serve our
customers and grow our wireless telecommunications businesses through the
next decade and beyond" said Jay Monroe, Chairman and CEO of Globalstar,
Inc. Mr. Monroe added, "the current environment for this type of financing
is extraordinarily strong. This financing environment, combined with the
company's exceptional financial performance, has enabled us to fully fund
our business plan at this time."
Horace Zona, Managing Director of Wachovia Securities said, "Globalstar
represents an excellent credit, exhibiting growing revenue and
profitability which is both substantial and expanding. Wachovia has a
twenty year relationship with the Thermo Companies and looks forward to an
expanding relationship with Globalstar."
Earlier this year, Globalstar LLC converted from a limited liability
company into a corporation and is now known as Globalstar, Inc. Globalstar
is mandated by its organizational documents to register its shares with the
Securities and Exchange Commission prior to October 13th of this year.
Over the past 24 months Globalstar has consolidated various operations
in the Americas and Western Europe and opened a new satellite gateway
ground station in Florida. It is also in the process of constructing an
additional gateway in Alaska, which will open later this summer. With its
independent gateway operator-partners, the company has significantly
expanded its simplex data coverage by installing a number of new simplex
data appliqués throughout the world. In addition to its spare satellite and
second-generation constellation plan announcements, Globalstar has also
reported the signing of a $140 million agreement with QUALCOMM to
manufacture its current and next generation handset. In February the
company disclosed that it had activated its 200,000th customer unit.
About Globalstar, Inc.
With over 200,000 activated satellite voice and data units, Globalstar
offers high value, high quality satellite services to commercial and
recreational users from virtually anywhere in more than 120 countries. The
company's voice and data products include mobile and fixed satellite
telephones, simplex and duplex satellite data modems and flexible service
packages. Many land based and maritime industries benefit from Globalstar
with increased productivity from remote areas beyond cellular and landline
service. Global customer segments include; oil and gas, government, mining,
forestry, commercial fishing, utilities, military, transportation, heavy
construction, emergency preparedness, and business continuity as well as
individual recreational users. Globalstar data solutions are ideal for
various asset tracking, data monitoring and SCADA applications.
For more information regarding Globalstar, please visit Globalstar's
web site at http://www.globalstar.com
About Wachovia Securities
Wachovia Securities is the trade name for the corporate and investment
banking services of Wachovia Corporation and its subsidiaries, including
Wachovia Capital Markets, LLC, member NASD, NYSE, and SIPC and Wachovia
Bank, NA. Wachovia Corporation is one of the nation's largest diversified
financial services companies providing 13.4 million household and business
relationships with a broad range of banking, asset management, wealth
management and corporate and investment banking products and services.
Wachovia Corporation had assets of $541.8 billion, market capitalization of
$90.2 billion and stockholders' equity of $49.8 billion at March 31, 2006.
Contact: Dean Hirasawa of Globalstar, Inc., +1-408-933-4006, or
Dean.hirasawa@globalstar.com.
SOURCE Globalstar, Inc.
Web Site: http://www.globalstar.com/
NetQoS ReporterAnalyzer Technology to Monitor QUALCOMM Global Wide Area Network; NetQoS Network Traffic Analysis Module Supports Troubleshooting, Capacity Planning
April 24, 2006 08:00 AM US Eastern Timezone
http://home.businesswire.com/portal/site/google/index.jsp?ndmViewId=news_view&newsId=20060424005....
AUSTIN, Texas--(BUSINESS WIRE)--April 24, 2006--NetQoS(R) Inc., a provider of performance management products and services for global enterprise networks, announced that NetQoS ReporterAnalyzer(TM), the traffic analysis module of the NetQoS Performance Center, has been selected by QUALCOMM Incorporated (Nasdaq:QCOM).
"Global WAN visibility has become increasingly important as QUALCOMM has expanded, especially in international areas, to ensure we are getting the most out of our network infrastructure investments," said Zeeshan Sabir, IT network manager with QUALCOMM. "We chose NetQoS ReporterAnalyzer because it is a proven product for scaling to global WANs and delivering the detailed data needed for efficient troubleshooting and capacity planning."
NetQoS ReporterAnalyzer provides global visibility into wide area network traffic, enabling an understanding of how application traffic is impacting network performance. ReporterAnalyzer captures a rich set of traffic statistics from Cisco IOS(R) NetFlow or other IPFIX-enabled routers and switches to identify which applications and users are using bandwidth, and when, allowing network managers and engineers to make informed decisions in troubleshooting and capacity planning. ReporterAnalyzer handles the volume of flow data typical in large networks, providing real-time visibility into enterprise-wide network traffic and access to more than a year's worth of data.
"NetQoS ReporterAnalyzer's reach is both broad and deep, enabling QUALCOMM to monitor traffic around the world and drill down into specific links for problem solving," said Joel Trammell, NetQoS CEO. "ReporterAnalyzer's real-time and historical data will also help QUALCOMM's network group plan for future growth while optimizing performance for its global employees."
NetQoS ReporterAnalyzer is a module of the NetQoS Performance Center, a Web-based management portal that integrates data from NetQoS' products in customized views to help enterprises be more effective in capacity planning, troubleshooting, and service level management.
About NetQoS Inc.
NetQoS software and services help large organizations -- including 8 of the Fortune 12 -- improve the delivery of applications over wide area networks by enabling them to monitor application service levels, troubleshoot problems quickly, and plan for change. Representative NetQoS customers include Chevron, Lockheed Martin, American Express, Hilton Hotels, Siemens, Boeing, Deutsche Telekom, NASA, and Barclays Global Investors. For more information, visit http://www.netqos.com or call 877-835-9575.
Qualcomm and Verizon to Launch New Mobile TV System
5:30 am on April 24, 2006 | Category: Wireless Technology, Mobile Devices
http://www.teleclick.ca/2006/04/qualcomm-and-verizon-to-launch-new-mobile-tv-system/
Qualcomm CEO, Paul Jacobs, has revealed that the chipmaker is currently “getting ready” to co-introduce a new mobile television technology system with America’s number two cell phone carrier, Verizon Wireless.
“Verizon will make a decision when to launch commercially,” Jacobs said in an interview late last week. “People will really like having access to audio and video.”
In the same interview the Jacobs spoke about the positive effects that Qualcomm’s licensing strategy is having on the mobile phone market, saying that it has created “a lot of competition,” and caused handset prices to continue “declining very rapidly.”
When asked about recent legal allegations that Qualcomm is charging “excessive” licensing fees, Jacobs defended the company and denied that it’s pricing is unreasonable. “Facts are on our side,” he insisted about the recent disputes.
BroadcastAsia expects another successful year
Monday - Apr 24, 2006
Televisionpoint.com Correspondent
http://www.televisionpoint.com/news2006/newsfullstory.php?id=1145877829
BroadcastAsia2006, the broadcasting and multimedia technology event, organised by Singapore Exhibition Services (SES), is on its way to another successful run at the Singapore Expo from the June 19-23 2006.
BroadcastAsia is the region’s most established, longest running industry event of its kind in the region, which makes it one of the most ideal platforms for product and technology launches in Asia.
"With the entire integrated workflow process addressed at BroadcastAsia, every technological solution in the entire value chain can be seen on the show floor", said Jackson Yeoh, Project Director, Singapore Exhibition Services.
Titled 'Digital: The Journey Forward', the new theme embodies BroadcastAsia’s positioning to embrace the digital revolution and constantly ‘go forward’ by staying relevant to the industry, while its subtitle, 'The 11th International Digital Multimedia & Entertainment Technology Exhibition & Conference', has also been updated to reflect the show’s progress.
BroadcastAsia2006 will also be moving its show from halls 1 & 2 of the Singapore Expo to halls 7 & 8 in 2006. In previous years, visitors had to walk 600 metres from the train station to get to the exhibition. The new venue offers increased benefits for both visitors and exhibitors, as it is closer to public transport access, such as the train station, taxi stand, food outlets and car parks, thus making it more accessible to all.
To date, top names in the industry that have signed up include Tandberg Television, Harris Corporation, Snell & Wilcox, Co-ship, Nokia, Panasonic, Thomson, Scopus Network Technologies, DVB – Digital Video Broadcasting, Barco, Quantel, Qualcomm and Conax. SES expects more industry players to come on board, what with the positive outlook in the global entertainment and multimedia industry.
This year’s show will include a strong presence by exhibitors featuring the latest in internet protocol television (IPTV), broadcasting to handhelds, video on demand, personal video recording, digital audio broadcasting (DAB), computer graphics and animation, conditional access control, and high-definition (HD) technology.
Held as part of BroadcastAsia2006, ComGraphics&Anination2006 will feature the latest hardware, software and services designed especially for the computer graphics and animation industry, film and motion picture industry, as well as for major broadcasters in Asia and beyond.
In addition, the ComGraph Digital Art & Animation competition, organized by SIGGRAPH Singapore Chapter will be held once again in conjunction with the CGA Exhibition to give recognition to creators of exceptional works of digital art and animation. An awards ceremony and winners announcement will be held on the first day of the show, and winning works for the Computer Animation categories, as well as outstanding works from award-winning animators will be screened during all 4 days of the exhibition. To date, a total of 280 entries have been received from both local and overseas competitors. There will also be a Digital Art Showcase where all the digital art entries will be displayed.
With the convergence of technologies (ICT, Telco and Media), the media landscape worldwide is experiencing significant changes. New ways of consuming media through the use of technologies - IPTV, Interactive TV, VOD, podcasting and such, are now available to the industry and consumers. These new trends will be discussed in the New Media Conference, jointly presented by Singapore Media Academy (a MediaCorp company) and SES.
Also held concurrently is the RadioAsia2006 conference, an annual conference that presents in-depth perspectives from industry leaders as well as public service and community broadcasters in order to gauge the future evolution of the medium in a context marked by the explosion of digital technologies and convergence. This year, RadioAsia2006 will commemorate 100 years of Radio, with a special session that looks at the triumphs and tribulations of radio over the last 100 years. Highlights includes a half-day of workshops conducted by two of the most reputed radio training institutions in the world including the Deutsche Welle – Akademie / Radio Training Centre from Germany and the Radio Netherlands Training Centre. It will be followed by a three-day conference where leading radio experts will be delivering papers and presentations.
Nine group pavilions from countries such as China, France, Germany, Italy, Korea, Spain, Singapore, the UK and the USA are also expected at the show.
The Italians are returning to BroadcastAsia in a big way. Having participated in the show in 2001 and 2004, the size of the Italian pavilion at BroadcastAsia2006 has increased by over 80%, while Korea and France have also increased their booth space by more than 100% this year.
"The comprehensiveness and relevance of this year’s conference lineup has also taken the event to new heights. With high caliber speakers with extensive knowledge and experience, delegates will gain an invaluable amount of knowledge and insight when they attend the conference, and it should therefore not be missed." added Yeoh.
Harris Corp. Demonstrates FLO(TM) Mobile TV Products at NAB2006
Harris Apex(TM) Digital Exciter is Centerpiece of New Harris FLO-capable Product Line
http://www.prnewswire.com/cgi-bin/stories.pl?ACCT=104&STORY=/www/story/04-24-2006/0004345509&....
LAS VEGAS, NAB 2006, April 24 /PRNewswire-FirstCall/ -- Harris
Corporation (NYSE: HRS) today announced that it will introduce a new line
of television transmitters at NAB2006 to support mobile television
applications using FLO technology. The Harris Atlas(TM) Mobile and Ranger
Mobile TV transmitters are powered by the Harris Apex(TM) digital
television exciter, featuring fully adaptive linear and non-linear
correction for FLO requirements. Visitors to Harris' Central Hall location
(Booth #C807) will see the Harris Atlas Mobile UHF transmitter delivering
FLO mobile television services to a FLO-capable handset.
"Harris has been working with the development team at QUALCOMM
MediaFLO(TM) Technologies since 2004 to develop a version of its Apex
digital television exciter for FLO air-interface requirements. At NAB2006,
we're pleased to highlight the results of that effort: a complete range of
television transmitters capable of transmitting FLO services," said Dale
Mowry, vice president and general manager of the Harris Television
Broadcast Systems business unit.
QUALCOMM developed the MediaFLO system to enable the delivery of rich,
high-quality multimedia content to mobile handsets. FLO technology, a key
component of the MediaFLO system, is an air-interface technology designed
to increase capacity and coverage and reduce costs for multimedia content
delivery to mobile handsets. MediaFLO USA, a wholly owned subsidiary of
QUALCOMM, will implement the technology in the United States in a
nationwide mobile multicasting network. Globally, FLO technology is
supported by the FLO Forum ( http://www.floforum.org ), an organization
responsible for driving global standardization of the technology.
"As potential mobile multimedia operators around the world consider how
to best launch their services, the MediaFLO system provides a compelling
and cost-effective mobile TV solution," said Rob Chandhok, vice president
of engineering and international market development for QUALCOMM MediaFLO
Technologies. "Our work with leading broadcast television transmitter
manufacturers such as Harris makes it easier for those mobile multimedia
operators to implement an advanced and cost-effective FLO-based service
offering."
The Apex FLO exciter is the newest version of the Harris Apex digital
exciter first developed for ATSC transmission requirements. Introduced in
2002, the Harris Apex ATSC exciter has become the leading digital
television exciter in countries rolling out ATSC services. Virtually the
entire Harris ATSC transmitter range, from low-power to high-power in VHF
and UHF bands, will be FLO capable.
Harris will initially offer FLO capability in versions of its Atlas and
Ranger television platforms. Since its first shipments in 2004, the Harris
Atlas liquid-cooled UHF platform has shipped into television transmission
operations in Europe, Africa, the Middle East, Asia, Latin America, and the
United States, for analog operations from 2.5 kW to 30 kW and DVB-T and
DVB-H applications from 1.25 kW to 6 kW. Harris is offering the Atlas
Mobile transmitters for FLO applications from 1.7 to 10 kW.
The Ranger Mobile transmitter platform builds upon the leading lower
power ATSC Ranger transmitter platform. Available in 250 and 500 watt FLO
versions, the air-cooled Ranger Mobile transmitter is ideal for initial FLO
transmitter deployments, as well as distributed, single-frequency networks.
Harris Broadcast Communications Division is an active member of the FLO
Forum. The FLO Forum is a multi-company initiative committed to advancing
the global standardization of FLO technology, including compliance and
certification benchmarks for the technology. Composed of more than 30
industry-leading organizations, the FLO Forum works to develop products and
services, based on FLO technology, that enable the delivery of advanced
multimedia services to wireless consumers.
About Harris Broadcast Communications Division
Harris is an international communications and information technology
company serving government and commercial markets in more than 150
countries. With headquarters in Melbourne, Florida, the company has annual
sales of over $3 billion and more than 13,000 employees -- including 5,500
engineers and scientists -- dedicated to the development of best-in-class
assured communications(TM) products, systems, and services. The company's
operating divisions serve markets for government communications, RF
communications, broadcast communications, and microwave communications.
Additional information about Harris Corporation is available at
http://www.harris.com .
QUALCOMM(R) is a registered trademark of QUALCOMM Incorporated.
MediaFLO(TM) and FLO(TM) are trademarks of QUALCOMM Incorporated.
Atlas(TM) Mobile UHF Transmitter Photos are available on the Harris
website at http://www.broadcast.harris.com/news/photos.asp
SOURCE Harris Corporation
Web Site: http://www.harris.com http://www.floforum.org
http://www.broadcast.harris.com/news/photos.asp
http://www.nabshow.com/default.asp
QUALCOMM Announces Citywide Coverage of FLO(TM) Technology During NAB2006 in Las Vegas
Monday April 24, 7:30 am ET
- 16 Channel Demonstration Showcases Capacity and Wide-Area Coverage Capabilities of FLO Technology -
http://biz.yahoo.com/prnews/060424/lam067.html?.v=48
LAS VEGAS, April 24 /PRNewswire-FirstCall/ -- QUALCOMM Incorporated (Nasdaq: QCOM - News), a leading developer and innovator of Code Division Multiple Access (CDMA) and other advanced wireless technologies, today announced that the Company is providing citywide coverage of FLO technology during NAB2006, April 24-27 in Las Vegas. FLO technology, a multicast innovation and key component of the MediaFLO(TM) system, is an air-interface technology designed to increase capacity and coverage, and reduce cost for multimedia content delivery to mobile handsets. The NAB2006 demonstration will feature multicast of 16 channels of QVGA-quality video content, audio content and data transmissions for IP datacasting applications across the city of Las Vegas, using two high-powered FLO transmitters. NAB2006 attendees will be able to view the MediaFLO demonstrations at the QUALCOMM/MediaFLO Booth SL2407H, in the South Hall of the Las Vegas Convention Center.
"A key design advantage of FLO technology, versus competing multicast technologies, is that capacity does not have to be sacrificed for quality or coverage. We view all three of these factors -- capacity, quality and coverage -- as 'must-haves' for a successful wireless multimedia offering and FLO technology was specifically engineered to optimize performance in each of these areas," said Rob Chandhok, vice president of engineering and international market development for QUALCOMM MediaFLO Technologies. "Our demonstration at NAB2006 is intended to show how FLO technology can enable up to 16 channels of video content at QVGA quality, all while being delivered in a cost-effective manner, using fewer transmitters than competing technologies to cover an entire market."
In addition to demonstrations of FLO technology, QUALCOMM executives will speak on key industry trends at NAB2006:
* Chandhok will take part in the executive panel entitled "Becoming the
Hybrid Network: What Must Broadcasters Do?" on Monday, April 24,
11 a.m.-12 p.m., Las Vegas Convention Center Room S222. From
1-1:45 p.m., he will give a MediaFLO technology overview in
Room S108/109.
* Chandhok also will present "Broadcasting in the Mobile World: Choosing
the Right Technology for the Job" as part of the "Viewers on the Move"
session on Tuesday, April 25, 10:30 a.m.-12 p.m., Las Vegas Convention
Center Room S221.
* Omar Javaid, senior director of business development for QUALCOMM
MediaFLO Technologies, will participate in the panel entitled "The Race
to Broadcast TV to Mobile Phones" on Tuesday, April 25, 12:00-1:00 p.m.,
Las Vegas Convention Center Room S219/220.
Engineered specifically for the mobile environment, FLO technology offers several advantages over other mobile multicast technologies, including higher-quality video and audio, faster channel switching time, superior mobile reception, optimized power consumption and greater capacity than other multicast technologies. Specific performance features of FLO technology in a 6 MHz channel include:
* Support for transmitting up to 20 streaming channels of QVGA-quality
(320x240 pixels) video at up to 30 frames per second, 10 stereo audio
channels (HE AAC+ parametric stereo) and up to 800 minutes of
distributed Clipcast(TM) content per day (short-format video clips)
* An average channel switching time of less than two seconds
In addition, FLO technology-based multimedia multicasting will complement wireless operators' CDMA2000®/EV-DO and WCDMA/HSDPA cellular network data and voice services, delivering content to the same cellular handsets used on these 3G networks.
The MediaFLO system is an end-to-end solution that enables multicasting of high-quality video, audio streams, Clipcast media and IP datacasting to mobile handsets. It is comprised of the MediaFLO Media Distribution System (MDS) and FLO technology. The MediaFLO system is a manageable, scalable, subscription- based distribution system and an efficient over-the-air network solution that provides wireless operators a way to cost-effectively deliver the high-quality audio and video content their subscribers desire. More information about the MediaFLO system is available at www.mediaflo.com.
QUALCOMM Incorporated (www.qualcomm.com) is a leader in developing and delivering innovative digital wireless communications products and services based on CDMA and other advanced technologies. Headquartered in San Diego, Calif., QUALCOMM is included in the S&P 500 Index and is a 2006 FORTUNE 500® company traded on The Nasdaq Stock Market® under the ticker symbol QCOM.
QUALCOMM is a registered trademark of QUALCOMM Incorporated. MediaFLO, FLO and Clipcast are trademarks of QUALCOMM Incorporated. CDMA2000 is a registered trademark of the Telecommunications Industry Association (TIA USA). All other trademarks are the property of their respective owners.
QUALCOMM Contacts:
Michele Guthrie, QUALCOMM MediaFLO Technologies
Phone: 1-858-651-4017
Email: mediaflo_pr@qualcomm.com
Jeremy James, Corporate Communications
Phone: 1-858-651-1641
Email: corpcomm@qualcomm.com
Bill Davidson, Investor Relations
Phone: 1-858-658-4813
Email: ir@qualcomm.com
--------------------------------------------------------------------------------
Source: QUALCOMM Incorporated
Broadcom Shares Pummeled on Downgrade
Friday April 21, 11:50 am ET
Broadcom Shares Slip on Downgrade, Despite Solid 1Q Results
http://biz.yahoo.com/ap/060421/broadcom_mover.html?.v=1
NEW YORK (AP) -- Investors sold off shares of Broadcom Corp., an Irvine, Calif.-based semiconductor maker, in Friday's trading session, despite the company reporting its first-quarter profit nearly doubled, in line with analysts' consensus estimates.
Caris Company analyst Rick Whittington wasn't gushing, though. He downgraded the stock from "Buy" to "Average" and said that even if the company's second-quarter guidance proves conservative -- the company projected a 3 percent to 5 percent increase in second-quarter revenue in Tuesday's conference call -- the stock is already fairly valued.
Shares of Broadcom, which have traded between $19.01 and $50 over the last year, fell $1.92, or 4.2 percent, to $43.85 in midday trading on the Nasdaq.
And Whittington wasn't alone with his concerns. Although UBS analyst Alex Gauna lifted his 2006 and 2007 earnings estimates to $1.50 and $1.60 per share, respectively, from $1.40 and $1.55 per share, and raised his target price to $60 from $55, he warned that it could be difficult for the company to deliver dramatic upside in the future.
"We caution that research and development costs are also rising and that the law of large numbers on sales and higher share count (post split) will make it increasingly difficult to deliver big upside to consensus," Gauna wrote in a research note.
In February, Broadcom completed a three-for-two stock split. There were most recently an estimated 524.4 million outstanding shares.
Nokia falls short of wireless goals
Firm likely to turn to rival Qualcomm for CDMA chips in venture with Sanyo
By Jennifer Davies
UNION-TRIBUNE STAFF WRITER
April 21, 2006
http://www.signonsandiego.com/news/business/20060421-9999-lz1b21nokia.html
Call it Finnish pride or credit Nokia's aggressive, take-no-prisoners business style. Whatever the reason, for years, Nokia, the No. 1 mobile phone company in the world, resisted Qualcomm's wireless technology.
Initially, Nokia was convinced, along with almost everyone else, that Qualcomm's standard, called code division multiple access, or CDMA, would fail. Nokia instead focused on a competing standard that became the dominant wireless technology in the world.
But as San Diego-based Qualcomm made inroads in key markets like the United States and South Korea, Nokia took notice and began targeting the CDMA phone business, opening up a state-of-the-art facility in Poway in 2000. But even as Nokia began to offer CDMA cell phones, the company refused to buy Qualcomm cell-phone chips.
That stance made Nokia a lone wolf in the CDMA wireless world, as every other major mobile phone company used Qualcomm's chips. In 2003, Nokia joined up with Texas Instruments and STMicroelectronics with the aim of providing alternative CDMA chips and finally cracking Qualcomm's near-stranglehold on the CDMA chip market. Analysts estimate that Qualcomm has as much as 90 percent of the market.
But Qualcomm's percentage could soon reach 100 percent as Nokia might finally capitulate and become a Qualcomm customer – sort of.
In February, Nokia announced that it was joining its CDMA operations with Sanyo to establish a separate company that would focus exclusively on CDMA phones. The joint venture deal, which is expected to be finalized in next few months, will have about 3,500 employees worldwide.
Nokia's current Poway facility, which has about 1,100 employees after recently laying off 200 workers, will become the global headquarters for the new company, which has yet to be named.
While no formal announcements about chip suppliers have been made, there are indications that the new entity will indeed be a Qualcomm customer despite Nokia's and Qualcomm's historically frosty relationship.
“Qualcomm is an important partner for Sanyo at the moment,” said Timo Ihamuotila, senior vice president and general manager of Nokia's CDMA mobile phone business. “Qualcomm will certainly be a key partner for the new company as well.”
The joint venture will help both Sanyo and Nokia flesh out their CDMA product portfolio, Ihamuotila said. Whereas Nokia has had much of its success in the cheaper, entry-level phones in such regions as Latin America, Sanyo has done better in the high-end market in countries like Japan.
By combining Nokia's and Sanyo's market shares, the new company would catapult itself into the second-largest CDMA phone maker in the world behind LG Infocomm.
Despite the business strategy behind the joint venture, analysts said the move signaled that Nokia had finally admitted defeat in the CDMA market.
“I do think this is them sort of going uncle,” said Michael King, an analyst with Gartner Group.
While Nokia would hardly characterize its CDMA venture as a failure, the company no doubt has failed to reach the lofty goals it had set. Back in 2003, the company said it wanted to have 25 percent of the CDMA market by 2005.
Currently, Nokia has about half that, with about 12.9 percent of the CDMA phone business, according 2005 numbers from Strategy Analytics, a market research firm.
“Clearly, you can draw the conclusion that it has not been exactly as we had hoped,” Ihamuotila said.
Nokia is used to achieving its goals, having built itself into the No. 1 mobile phone maker by concentrating on the other wireless standard, GSM, short for global system for mobile communication.
Early in Qualcomm's history, most people discounted its technology, saying it is was too complicated and expensive to compete with GSM, which already had a fairly impressive headstart.
While CDMA has made inroads, GSM is still the most prevalent wireless technology in the world. But with high-profile carriers like Verizon and Sprint using Qualcomm's CDMA technology, Nokia and other wireless phone makers have realized they also must make phones using that technology if they are going to improve their sales.
Still, while the Sanyo-Nokia joint venture will focus on CDMA, Nokia will continue to concentrate on GSM and its next-generation technology path.
Nokia's failure to capture more of the CDMA phone business was hardly its fault alone, said Albert Lin, an analyst with American Technology Research.
He said Nokia had expected Texas Instruments to come through with CDMA chips that could match Qualcomm's products. The problem, in part, was that Texas Instruments focused on a different variation of Qualcomm's next-generation technology, called CDMA2000 EV-DV, but wireless companies like Sprint eventually went with the technology Qualcomm was pushing, CDMA2000 EV-DO.
The end result is that Texas Instrument's next-generation CDMA chips had no real market, so Nokia couldn't use them in their phones.
“They just skipped over that technology,” Lin said of the wireless phone companies.
For its part, Texas Instruments said it wasn't the chips it produced but rather the anti-competitive nature of the CDMA market that torpedoed its foray into the the business.
Alain Mutricy, the company's vice president and general manager of cellular systems, complained that Qualcomm has made it impossible for other companies to compete.
“CDMA is not a fair, open, competitive market,” he said.
Because of that, Mutricy said Texas Instruments decided to get out of the CDMA chip business and focus on other wireless technologies it deemed to have better growth opportunities.
Texas Instruments and Nokia are not the first the companies to try to enter the CDMA chip market only to give up.
Motorola, the No. 2 mobile phone maker, used its own chips but now buys them from Qualcomm. LSI Logic and Intel were interested in entering the CDMA chip business but decided against it. Sanjay Jha, president of Qualcomm's CDMA Technologies Group, said that economies of scale, not anti-competitive practices, explain his company's success.
He said that when a company has only 10 percent of the market, it can only invest in one type of chip. But Qualcomm is always working on new versions of its technologies so it can stay ahead of consumer demand.
Nokia, for instance, is still using CDMA chips that have a harder time providing such next-generation services as video and audio clips than Qualcomm's CDMA2000 EV-DO chips do.
The rise in popularity of those next-generation services and CDMA2000 EV-DO is part of the reason Nokia had to figure a different way to tackle the market, Lin said.
“When you are looking at 15 percent of the market is EV-DO, it's sort of hard to stay No. 1 when you have zero percent of that market,” he said.
But others disagree. Mutricy of Texas Instruments said that the other next-generation technology, W-CDMA, or wideband-CDMA, which uses some of Qualcomm's patents but is considered to be a more open standard than CDMA2000, is growing faster – so that's where companies like Nokia and TI are concentrating their attention.
Ed Schneider, an analyst with Charter Equity Partners, said Nokia's decision to join up with Sanyo for CDMA phones is both a tacit admission of defeat in the CDMA business as well as an acknowledgement that the market has fundamentally changed.
“They are saying that CDMA is not as important as it was three or four years ago,” he said.
But Ihamuotila begged to differ, saying that the technology is an important and growing sector and one that the new joint venture will go after aggressively.
“The CDMA market is growing on pace with the global handset market,” he said. “It is hard not to characterize it as a growth market.”
--------------------------------------------------------------------------------
Jennifer Davies: (619) 293-1373; jennifer.davies@uniontrib.com
Jim, what a difference between After Hour yesterday and now: from 48 down to 44, When the truth about GAAP became evident.
Jim, your previous posts seemed correct about the effect of pension expense. Market appear concerned with GAAP now, see bellow quote:
Symbol Time* Trade* Change* After Hrs Chg* Bid* Ask*
BRCM 9:58AM ET 43.88 -1.89 (4.13%) N/A 43.86 43.88
Nokia sales surge, as do IP disputes with Qualcomm
By John Walko
EE Times
Apr 20, 2006
http://www.commsdesign.com/news/showArticle.jhtml?articleID=186500161
LONDON — Nokia reported earnings and sales above expectations for the first quarter of the year, lifted by strong demand for its products in emerging markets such as China.
Net profit rose 21 per cent to $1.29 billion in the first quarter compared with the previous year, exceeding market expectations.
Overall sales rose by 29 percent to $11.7 billion from $8.9 billion a year earlier, and sales of mobile phones grew 30 per cent.
Nokia said its share of the device market in the quarter was 35 per cent, up from 32 per cent in the same period a year earlier. The company sold 75.1 million phones during the period. The increase in market share was driven mainly by strong gains in China, North America, Latin America and the Asia-Pacific region, which offset market share declines in Europe and the Middle East and Africa.
Earlier Thursday (April 20) market research group Strategy Analytics said Nokia had a 33 percent market share of the global handsets market in the first quarter, but arch rival Motorola was the star performer with a 20 percent share for the first time since 1998.
Strategy Analytics said 225 million phones were shipped during the quarter, an annual growth rate of 31 per cent, and predicted sales of 1 billion units for 2006, up 22 percent from 817 million last year.
Nokia reiterated that the global mobile phones market was set for another year of good growth in 2006, with market volume expected to increase by 15 per cent or more. About 70 per cent of that volume growth was expected to come from emerging markets.
“We intend to maintain our leadership in these fast growing markets, where being competitive in the lower priced entry level products is critical to Nokia’s future success,” said Olli-Pekka Kallasvuo, Nokia’s president, who will replace Jorma Ollila as chief executive in June.
However, increased sales of lower-cost handsets in emerging markets have had a downward effect on the average selling price of Nokia’s handsets. The average price was Euros 103 in the first quarter, down from Euros 110 figure from a year earlier.
Last month, the Finnish company raised its estimate for the average selling price of its handsets to $125 in the first quarter. Separately, Nokia said on Thursday (April 20) that Qualcomm had filed a report on its licensing agreement with Nokia with the U.S. Securities and Exchange Commission. This escalates the on-going and increasingly acrimonious dispute between the companies on the use of CDMA patents held by Qualcomm.
Some of those CDMA-related patents are included in Nokia’s current license agreements with Qualcomm, which in part come to an end in April 2007.
Qualcomm’s filing said that it had been in discussions to conclude an extension or a new licence agreement with Nokia, but added that there was “no certainty” as to when terms might be agreed. “There is also a possibility that the parties will not be able to conclude a new or extended agreement by April, 2007.”
Nokia said it could not comment on the state of negotiations with Qualcomm to break the impasse because of “a non-disclosure agreement.”
Nokia and Qualcomm are involved in other legal disputes over patent infringement. In November, Qualcomm announced it was suing Nokia for infringement of a dozen of its patents. That move followed six leading communications industry companies filing separate complaints with the European Commission alleging that Qualcomm Inc. is unfairly withholding intellectual property.
Broadcom Corp. Ericsson, NEC, Nokia, Panasonic Mobile Communications and Texas Instruments Inc. each asked the EC to investigate and stop alleged anticompetitive conduct by San Diego-based Qualcomm in the licensing of essential patents for 3G mobile technology.
Nokia, Qualcomm Make Nice
By Scott Moritz
Senior Writer
4/20/2006 1:35 PM EDT
http://www.thestreet.com/_googlen/tech/telecom/10280489_2.html
Nokia (NOK:NYSE ADR - commentary - research - Cramer's Take) shares hit a two-year high after the company posted strong numbers and executives expressed more confidence in the power of its technology patents.
The No. 1 cell-phone maker nailed its first-quarter performance thanks to the rapidly spreading popularity of wireless service in developing countries, along with growing demand for 3G handsets.
Investors also cheered the sudden sign of gentleness among wireless giants, as Nokia and Qualcomm (QCOM:Nasdaq - commentary - research - Cramer's Take) jointly agreed on a statement that they were in discussions to renew a licensing deal set to expire in a year.
The rare glimmer of a truce in an increasingly heated wireless patent battle helped send Nokia shares up 4% Thursday.
The softened-stance revelation came in Qualcomm's quarterly filing Wednesday, relieving some concerns that the ongoing legal standoff over patents and royalties could trip up profits for the San Diego wireless standard bearer.
"I think people that missed Qualcomm rise on the long side are now trying to spin this as a negative," says one hedge fund manager, referring to the overheated concerns about near-term patent licensing deals.
"The expectation is that neither side wants to mess up the other," says the investor. "The real issue seems to be the duration of the new contract."
Nokia and Qualcomm are likely to be inclined to strike a deal well before deadline to avoid any financial disruption, say analysts and investors.
A one-year to three-year renewal would be suitable for Nokia, allowing the Finnish phone titan to pursue its longer-term legal challenge to Qualcomm's licensing fees, says JPMorgan Chase analyst Ehud Gelblum in a research note Thursday.
In October, Nokia along with Broadcom (BRCM:Nasdaq - commentary - research - Cramer's Take), Texas Instruments (TXN:NYSE - commentary - research - Cramer's Take), Ericsson (ERICY:Nasdaq ADDR - commentary - research - Cramer's Take), NEC and Panasonic filed a complaint asking the European Commission arguing that Qualcomm's pricey licensing fees were driving up phone costs.
Qualcomm says it is preparing a response to the charge.
Meanwhile, Nokia CEO Jorma Ollila told analysts on a conference call Thursday that the company has been a "net payer" overall in its various licensing agreements. But Ollila, who leaves Nokia in June to take the top job at Royal Dutch Shell (RDSA:NYSE ADR - commentary - research - Cramer's Take), says the patent power has shifted in Nokia's favor.
"We believe our negotiation position will be stronger than it has been in the past," Ollila said. "In WCDMA, our investments have been very significant and put us in a pretty nice position."
Ollila says Nokia is seeking a "constructive approach" to licensing agreements that can help cut his company's operating costs and foster wireless innovation.
The peacemaking propaganda sounded good to investors anyway. Nokia shares were up 90 cents to $22.64 in midday trading Thursday.
From the Strret.com
http://www.thestreet.com/_yahoo/funds/realmoneyradiowrap/10279843_2.html
Cramer said that Qualcomm (QCOM:Nasdaq - commentary - research - Cramer's Take), which he also owns for his charitable trust, may be the strongest in the sector.
Jim, I have follow closely about accounting for Options Expenses of certain companies that you mentioned before, now there is an interesting article about these companies, please see my previous post or see below link:
Options expensing and earnings confusion
First Call data may mean different kinds of yardsticks on Wall Street
E-mail | Print | | Disable live quotes By Dan Gallagher, MarketWatch
Last Update: 1:04 PM ET Apr 18, 2006
http://www.marketwatch.com/News/Story/Story.aspx?guid=%7B04FC4E2F%2D92E0%2D4463%2D9D5C%2DEC1256A0B29....
Last Update: 1:04 PM ET Apr 18, 2006
Options expensing and earnings confusion
First Call data may mean different kinds of yardsticks on Wall Street
E-mail | Print | | Disable live quotes By Dan Gallagher, MarketWatch
Last Update: 1:04 PM ET Apr 18, 2006
http://www.marketwatch.com/News/Story/Story.aspx?guid=%7B04FC4E2F%2D92E0%2D4463%2D9D5C%2DEC1256A0B29....
Last Update: 1:04 PM ET Apr 18, 2006
SAN FRANCISCO (MarketWatch) -- Investors tracking red-hot Internet search stocks may be forgiven some confusion surrounding the first-quarter results slated to be issued by sector leaders Google Inc. and Yahoo Inc. this week.
That's because the closely tracked analyst estimates that Thomson First Call compiles on the two companies will differ in one key respect: how they reflect employee stock options.
The published average estimate on Yahoo (YHOO : Yahoo! Inc.
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30.85, -0.12, -0.4%) includes the expensing of stock options; the figure for Google (GOOG : google inc cl a
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402.21, -4.61, -1.1%) doesn't.
That disconnect highlights an issue investors must grapple with as they assess the slew of first-quarter earnings reports that are out this week in full force. This marks the first earnings season in which all U.S. public companies are required to report employee stock options as an expense.
Wall Street analysts have adapted slowly to the rule, adopted in the wake of corporate accounting scandals, and many of them issue two sets of estimates for any given company.
Such cases create headaches for Thomson First Call and other tracking firms that compile the estimates and publish averages that many investors use to gauge a company's performance.
Many investor-oriented Web sites and news organizations cite the published First Call number as the benchmark of Wall Street's expectations. In addition, MarketWatch, the publisher of this report, provides exclusive news services to Thomson clients.
First Call has responded with a "majority rule" method that essentially leaves it up to the market to decide how to classify a company's results. If a majority of analysts covering a specific company decide to include options expensing in their final average estimate, First Call will publish an average of those numbers.
The spread between an earnings estimate that includes the effect of options expensing and one that doesn't can make the difference between whether analysts expect a company to post a profit or a loss.
If most analysts don't include options in their final numbers, however, First Call's published figure will reflect that.
This could make it difficult for investors to get an accurate reading of how Wall Street may react to a company's performance. Falling short or exceeding the average First Call estimate often figures heavily in trading action following a quarterly report.
For companies in the same industry, it may be particularly tricky. Take Yahoo, the online media giant slated to report first-quarter results after Tuesday's closing bell. First Call's average earnings estimate of 11 cents a share for Yahoo includes the expensing of stock options, following the lead of a majority of analysts covering the company.
However, many of those same analysts did not include the stock-options charges in their projections for rival Google, which reports results two days later. First Call has projected Google will earn $1.97 a share for the quarter, excluding options. The average estimate among analysts who did include stock options is $1.73 -- a difference of 12%.
In some cases, the gap can be much more significant. Take Broadcom Corp. (BRCM : broadcom corp cl a
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43.61, +0.93, +2.2%) . The semiconductor maker is scheduled to report results Thursday, and the average estimate including options expenses is 18 cents a share.
That's 50% below First Call's official published estimate of 34 cents a share, which excludes options.
In other instances, the spread can make the difference between whether analysts expect a company to post a profit or a loss.
This is true for two companies reporting in early May: Federated Department Stores Inc. (FD : Federated Department Stores, Inc.
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74.17, +1.02, +1.4%) and video-game publisher Electronic Arts Inc. (ERTS : Electronic Arts Inc
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56.00, +1.61, +3.0%) . The current First Call consensus figures include stock options for Federated but not for Electronic Arts.
To assist clients, Thomson issues a daily e-mail detailing earnings estimates for companies reporting the following day. The list highlights which methodology is used for the consensus figure for each company but only comprises components of the Standard & Poor's 500 for this earnings season.
Investors who rely on Web sites such as MarketWatch and Yahoo Finance may be more challenged in sorting out the results. All three sites publish the First Call consensus figures but for now don't indicate when the figure includes options expensing.
Representatives of both MarketWatch -- the publisher of this report -- and Yahoo Finance said they were still working out how to respond to the changes in the First Call methodology.
Manager favors Frontier Oil, Qualcomm
April 17, 2006 05:43 PM ET
http://moneycentral.msn.com/content/CNBCTV/Articles/StockPicks/P149794.asp
Cut and paste from above link:
QCOM 9
QUALCOMM, Inc. 51.02 unch Charts | Msgs | All QCOM picks
Cuggino invests fixed percentages in gold, silver, Swiss government bonds, aggressive growth stocks and Treasurys. The fund is up an average of 13.3% a year over the past five years. Start investing with $100.
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new ETF center.
Cuggino recommended the following stocks during an appearance Monday on CNBC's "Kudlow & Company." Get additional details below, and use the CNBC.com on MSN tools, including StockScouter, to learn more about each company. And keep up with the Street with MSN Money’s Market Summary.
QUALCOMM, Inc.
• The company is a leading developer of wireless-chip technology. It pioneered CDMA (code division multiple access) technology used in cell phones and other wireless communications equipment.
• As the CDMA patent holder, Qualcomm derives royalties from licensing its technology to cell phone makers. Technology licensing accounts for one-third of company sales.
• Qualcomm is well positioned to benefit in the ongoing shift to newer 3G or third-generation cell-phone technologies that can transmit data at higher speeds, Cuggino said.
• Qualcomm benefits from the preference for high-tech over cheap-tech in the market for “smart” mobile phones, wrote Caris & Co. tech analyst Mark Stahlman in an April 6 Investors’ Soapbox column for Barron’s. “This tilt toward high-tech is likely to stretch into 2007-2008 and possibly beyond,” Stahlman wrote. “(A) broad upgrade cycle -- to support the global expansion of digital services -- is the most important change in technology in the past five to 10 years, in our opinion.”
• Piper Jaffray on April 17 raised its 12-month price target on Qualcomm to $57 from $55.
• The stock opened at $51.42 on April 17. It fluctuated between $52.48 and $32.70 over the preceding 12 months.
• According to Zacks, the average brokerage recommendation for Qualcomm is moderate buy.
• Qualcomm on April 17 was rated 9 out of 10 on StockScouter.
QUALCOMM Upside Potential Becoming More Muted
Posted 2:12 PM
Monday, April 10, 2006
http://www.schaeffersresearch.com/commentary/optionbytes.aspx?c=bytefeed&byteID=16234&single....
Shares of QUALCOMM (QCOM: sentiment, chart, options) are weakening today, but optimism among options traders toward the stock has not weakened. On Friday, there were about four calls traded on the stock for every one put, and today's call option volume is nearly five times respective put volume. The stock has been extremely strong so I'm not advocating a bet against the shares. However, I wouldn't be surprised if extreme optimism causes the stock to pull back a bit from recent highs. QCOM is currently down 46 cents to $51.43.
Qualcomm shares Sarbanes-Oxley experience
10 apr 2006 | 22:11
http://www.computerpartner.nl/article.php?news=int&id=2991
By compliance standards, Qualcomm is an early adopter. The San Diego chipmaker was among the first public companies to comply with Section 404 of the Sarbanes-Oxley Act - a full year before the close of its 2005 fiscal year and well before the legislation's deadline.
But when it comes to IT products designed to help automate the compliance process, Qualcomm prefers not to be an early adopter.
For its first round of compliance, Qualcomm relied on staff to do the documentation and testing of controls. SOX Section 404 requires companies to attest to the effectiveness of the internal controls put in place to safeguard financial reporting systems and procedures. To do so, companies need to identify their key processes and, within those processes, identify key controls and establish ways to measure the effectiveness of those controls.
When Network Worldspoke to Qualcomm CFO Bill Keitel last year (http://www.networkworld.com/research/2005/020705sox.html?brl), he said a manual start to SOX compliance was unavoidable. "There's no way a system can do all those steps. That's a very manual, intensive process," Keitel said last year. "I would venture that there's no alternative to doing it manually this first time through."
Fast forward to 2006, and Keitel says the second year of compliance is easier than the first year, since the documentation is complete (barring some inevitable modifications) and the processes for testing controls are in place. In addition, Qualcomm has been able to reevaluate what it defines as key system controls and simplify some things. "After you get through the first year, the second year is about continuing to implement," Keitel says.
However, while SOX compliance has gotten easier for Qualcomm, it remains a manual-intensive project. Keitel is ready for tools that will help automate SOX compliance, but finding the right ones hasn't been easy. Qualcomm invested in software to help with the data management requirements of SOX, but the tool the company purchased was a disappointment. "The product didn't prove to be as robust as we hoped," he says.
Keitel hasn't given up, but he's waiting for the compliance software market to mature a bit more. "We're trying to bide our time in hopes that we'll see things stabilize a bit." Among the tools on Keitel's radar is software to help aggregate compliance testing data.
As for the cost of SOX compliance, there's good news in that department. Qualcomm was able to reduce its SOX spending during its 2005 fiscal year, ended in September. "We saw some reasonable savings going into the second year," Keitel says. "The first year we spent approximately US$7 million. The second year we brought that down to just under $5 million."
As he looks back on two years of SOX compliance, Keitel has mixed feelings about the legislation's impact. For example, having to comply with Section 404 sped up Qualcomm's ongoing efforts to more thoroughly document its business processes - but some of the work is overkill.
"SOX pushed us to do more of that process mapping sooner than what we had planned on," Keitel says. "Some of that was good, because it was process mapping I wanted to do anyway. But I feel like it went way beyond what we would have done on our own. That's the drawback for me."
Looking ahead, Keitel sees an opportunity for Qualcomm to reinstate some of the IT projects that got put on the back burner when SOX surfaced. "We were planning to do some system changes within Qualcomm, and the immensity of the SOX 404 process required us to delay them a bit. But we're trying to get back on that path now."
Terug
Qualcomm To Create A Consortium For MediaFLO In India
By Sahad on Mon 10 Apr 2006 05:54 PM IST
http://www.contentsutra.com/qualcomm-to-create-a-consortium-for-media-flo-in-india
We had reported here last week that Qualcomm is looking at creating a consortium of like-minded players for providing MediaFLO mobile TV experience in India. Paul Jacobs, CEO of Qualcomm, was in India recently. Here are the key points of an interview he gave to Hindustan Times:
Tell us more about what you want to do with MediaFLO (mobile TV) in India?
We are clearly going to invest into creating a company for this purpose. It might be a holding company leading a consortium of different players — operators, broadcasters, content providers and the like. We have to find the right partners who are well-connected and have the distribution channels. While our operating partners will put in most of it, we will chip in substantially.
A serious dialogue is underway with partners to build this consortium in India. After MediaFLO what?
We want to test new frontiers in mobile technology. Mobile TV is a fruition of that in many ways. We haven’t done much with GPS, voiceover IP, payment systems and maybe even healthcare on the cellphone. We are keen to create a security blanket with your doctor through the cellphone.
Highest-Rated Stocks Investors Love to Own
http://biz.yahoo.com/special/own041006.html
Today's list features several companies that could certainly be called household names. But landing on our list of 10 "Highest-Rated Stocks Investors Love To Own" means more than simply being the subject of water cooler chatter. More...
1. Caterpillar (CAT) - View IBD Stock Checkup
Composite Rating: 98.* Heavy-equipment makers rallied last week after construction-spending data came in better than expected. More.
2. Starbucks (SBUX) - View IBD Stock Checkup
Composite Rating: 98. Insiders have been selling shares in recent months, but the stock continues to hit all-time highs. More.
3. Schlumberger (SLB) - View IBD Stock Checkup
Composite Rating: 98. Leadership is broad in its industry group – Oil & Gas-Field Services. Fourteen stocks in the group have Composite Ratings of 95 or higher More.
4. Corning (GLW) - View IBD Stock Checkup
Composite Rating: 97. Strong sales of flat-panel TVs have been a boon to the leading supplier of liquid crystal display glass. It’s ranked in the IBD Big Cap 20 along with Starbucks, Schlumberger, Merrill Lynch, Qualcomm and Halliburton. More.
5. Merrill Lynch (MER) - View IBD Stock Checkup
Composite Rating: 97. The investment bank recently said it would take a $1.2 billion charge in the first quarter due to new accounting standards. More.
6. Halliburton (HAL) - View IBD Stock Checkup
Composite Rating: 96. Its first-quarter earnings conference call is scheduled for April 21. Analysts expect a 50% increase in first-quarter profit of 87 cents a share and a 14% rise in sales to $5.62 billion. More.
7. Qualcomm (QCOM) - View IBD Stock Checkup
Composite Rating: 96. The maker of wireless communications products is expected to grow annual earnings by 33% in 2006 to $1.56 a share. Annual pre-tax margin in 2005 was 49.3%. More.
8. Cisco Systems (CSCO) - View IBD Stock Checkup
Composite Rating: 91. The maker of networking and communications hardware was recently ranked No. 83 in the latest Fortune 500. More.
9. Valero Energy (VLO) - View IBD Stock Checkup
Composite Rating: 90. Limited refining capacity in the U.S. has boosted shares of the San Antonio-based firm, but recent weekly price gains have come on below-average volume. More.
10. Hewlett-Packard (HPQ) - View IBD Stock Checkup
Composite Rating: 89. The maker of desktop and mobile computers, printers and servers is expected to grow annual earnings by 20% in 2006 and 14% in 2007. More
* The IBD SmartSelect Composite Rating combines all 5 SmartSelect Ratings into one easy-to-use rating. More weight is placed on EPS and RS Rating, and the stock's percent off its 52-week high is also included in the formula.
MindSpring Announces Data Miniaturization Extension for QUALCOMM’s BREW Solution
Press Release: The WindSpring DMT extension for BREW permanently reduces mobile phone applications into the Micro Data Format (MDF), which unlike compression, enables full data access and manipulation (including high-speed seek, search, edit and display) while miniaturized, without the need to enlarge the data to its original size.
For more detail, see link:
http://www.c10n.info/archives/413
4 Stocks That Took a Hike
By Rick Aristotle Munarriz (TMFBreakerRick)
April 10, 2006
http://www.fool.com/News/mft/2006/mft06041001.htm
Do you buy dividend-paying stocks for today's yield, or for the potential of greater payouts? Too many investors are too concerned with the present to fully appreciate companies that inch their payouts higher; in the future, those firms will become even more attractive to dividend-hungry investors. Higher payouts are also a good sign of a company with improving fundamentals.
Let's take a closer look at four of the companies that inched their payouts higher this past week.
We'll start with Qualcomm (Nasdaq: QCOM). The wireless communications enabler has been a Wall Street favorite, thanks largely to its knack of producing net profit margins of 35% or better in recent quarters. That's why a dividend hike shouldn't leave the company breaking much of a sweat. The quarterly distribution is going from $0.09 a share to $0.12 a share. The new sum will inch Qualcomm's yield to a mere 0.9%, but that may be just fine for growth-stock investors looking for a little extra pocket change.
On the more conservative side of the income-producing spectrum, we have TJX (NYSE: TJX). The parent company behind discount apparel retailers TJ Maxx and Marshalls picked up the pace on its payout. Investors will now receive $0.07 a share every three months. Even though that's just a penny better than the old dividend, it still translates into a beefy 17% increase for the company. It also comes as a rocky retail environment has put the company in a transitional phase.
H.B. Fuller (NYSE: FUL) was another hiker. The major player in sealants, coatings, and adhesives has been sticking to market-busting earnings growth. The company has considerably lapped analyst targets lately. That may give Fuller the flexibility to dramatically ratchet up its dividend, but the company has taken a more careful stance. In fact, Fuller is splitting pennies this time around, with its quarterly dividend now growing from $0.1225 to $0.125 per share. It still translates into an impressive streak of 37 consecutive years of dividend hikes.
Then we have Movado Group (NYSE: MOV). The watchmaker's 20% yield hike is making the passage of time more financially rewarding for shareholders. Investors will now be receiving $0.06 a share every three months. The move comes even after rival Fossil (Nasdaq: FOSL) had watered down its 2006 outlook back in February. That's one way to "clock" the competition.
BSkyB maybe planning mobile TV network
Murdoch's answer to Virgin's 4-Play
By Tony Dennis: Monday 10 April 2006, 14:34
http://www.theinquirer.net/?article=30890
NOW THAT the merger of Virgin Mobile with NTL/Telewest is confirmed, this is putting increasing pressure on arch rivals to respond. The most likely candidate is Rupert Murdoch's BSkyB. Could it be planning a mobile TV network?
The satellite broadcaster has already shown willing by acquiring Easynet so that it can offer its customers both broadband Internet and fixed line telephony. All it needs now is a cellular side to complete its own four-play (broadband; fixed, mobile and TV).
The INQ picked up on remarks made by Qualcomm's Rob Chandhok over likely candidates for the introduction of its MediaFLO technology into Europe. He argued that the difficult bit with any mobile TV offering is not so much building the network and supplying the phones.
To make such a venture work well, Chandhok explained, what you really need is masses of content. The ideal candidate would be able to fill 22 channels of mobile TV with content on a 24/7 basis. He also revealed that Qualcomm has identified sport as being the big draw for potential consumes of MediaFLO.
Sport? Loads of existing content? Experience with supplying 24/7 content? That's got to be BSkyB.
On top of this, it was obvious that Qualcomm is champing at the bit to announce which company is testing its mobile TV technology in Europe. What about handsets, though? MediaFLO has always been heavily associated with the US market.
Chandhok had already answered that question on a previous occasion. “Our work with leading handset manufacturers, such as Samsung, paves the way for UMTS operators around the globe to closely examine how a FLO-based service offering can take its mobile multimedia offerings to the next level,” he said.
Even Qualcomm's new CEO, Paul Jacobs, joined in the game by playing with a prototype of Samsung's combined W-CDMA (UMTS/3G) handset which also boasts a MediaFLO capability during Press interviews.
The only unanswered question is what frequency a European handset might utilise to receive TV pictures broadcast to it. The INQ would argue that a mobile handset receiving the signals from BSkyB's existing satellite would be too complex.
And Paul Jacobs gave us another clue. Qualcomm is working on creating a universal broadcast modem which would support all the standards for mobile TV – not just mediaFLO. So mobile network operators could conceivably supply handsets that let the consumer decide which mobile TV broadcast he or she wanted to watch. µ
Thank you DR. Your charts worth more than my historical quotes.
In case of doubt, Please see the following historical quotes from 3/30/01 to 3/30/06 (please look at the adjusted closed number)
http://finance.yahoo.com/q/hp?s=QCOM&a=02&b=30&c=2001&d=02&e=30&f=2006&g...
At 8:34AM ET QCOM reaches new 5 year hight: $51.45/Sh
Symbol Time* Trade* Change* After Hrs Chg* Bid* Ask*
QCOM 8:34AM ET 51.45 +0.73 (1.44%) N/A 51.35 51.45
NOK's 2006 handset market growth forecast: the mobile device market volume will increase globally 15 percent or more from our estimate of 795 million units in 2005:
The calculation shows:
795 x 1.15 = 914.25 millions units.
http://yahoo.reuters.com/stocks/QuoteCompanyNewsArticle.aspx?storyID=urn:newsml:reuters.com:20060330....
UPDATE 1-Nokia raises 2006 handset market growth forecast
Thu Mar 30, 2006 7:25 AM ET
HELSINKI, March 30 (Reuters) - The world's largest handset maker Nokia (NOK1V.HE: Quote, Profile, Research) raised on Thursday its forecast for global handset market growth, citing strong subscriber growth.
"Nokia estimates that in the year 2006, the mobile device market volume will increase globally 15 percent or more from our estimate of 795 million units in 2005," Chief Executive Jorma Ollila said at a shareholders' annual meeting.
Nokia had previously forecast 10 percent or faster year-on-year growth for the market.
Shares in Nokia had jumped 4.3 percent on the news to 17.40 euros by 1222 GMT.
Earlier, Nokia launched three new phone models, unveiling the handsets in China as it targets new clients in fast-growing emerging markets.
Nokia expects the world to have 3 billion mobile subscribers in 2008, compared with just over 2 billion now
biz, I hope you don't mind. For me, either you post it or I post it, It doesn't make any difference. DR or Rich can delete my post first in case of duplication.
biz, thanks for the reply. To save the time, I would suggest that DR (or another thread moderator) be the judge, he can delete the duplicated post by using "Last In First Out" method.
biz, you beat me by 2 minutes! How are you doing by the way? Did you go to see Cherry Blossom at the tidal base? it's going to be in peak bloom tomorrow(on 3/30/06},see below link:
http://www.nps.gov/nacc/cherry/