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Wi-Fi rides into Amtrak rail stations
Last modified: January 26, 2004, 4:04 PM PST
By Dawn Kawamoto
Staff Writer, CNET News.com
Amtrak is expanding its Wi-Fi service to six Northeastern U.S. train stations, in a move to attract more business travelers.
The rail company currently offers wireless access to networks in its first-class passenger lounge at New York's Union Station. But the rail company is expected to announce as early as Tuesday that six other stations will offer "less restrictive" Wi-Fi service, sources familiar with Amtrak's plans said.
Amtrak is planning to use a different Wi-Fi service provider than the one Union Station uses, the source said, noting that the company and a service provider are in the final stages of wrapping up a contract.
The contract will determine whether the service will be free and when it will be launched, the source said. Stations that will offer the service include Route 128 near Boston; Providence, R.I.; Wilmington, Del.; 30th Street Station in Philadelphia; and New York's Penn Station.
Once Wi-Fi is up and running at the stations, Amtrak expects to have roughly 1 million users of the service on a daily basis, ranging from business travelers to people stopping by the stations for an Internet connection.
The Northeast was selected for the Wi-Fi pilot program, given its large installed base of business travelers, the source said. The Union Station Wi-Fi service was launched roughly a year ago and has been well received by Amtrak passengers.
Dishfan -
Your comment, "...Qualcomm's future success is dependent on applying their remarkable wireless tech development capabilities to open standards, instead of their proprietary standards."
I completely agree with your assessment. QCOM's past success will define it's own limitations in the years ahead. Open standards VS proprietary standards will determine future cooperative efforts to the exclusion of monopolistic players. Profit margins can only be maintained co-existing with many others in an open standards world. JMHO
DoCoMo Facing Dilemma Over AT&T Wireless
DoCoMo Facing Dilemma Over AT&T Wireless
By Michiyo Nakamoto and Peter Thal Larsen, Financial Times
TOKYO — In the past few weeks, the global business department at NTT DoCoMo has sprung back to life.
The creme de la creme who staff the Japanese mobile phone group's global department have been shocked into activity by news that AT&T Wireless, in which NTT DoCoMo has a 16% stake, has been in talks with Cingular about a deal that could create the largest U.S. cellphone operator.
On Thursday Redmond, Wash.-based AT&T Wireless announced it had hired an investment banker to evaluate "strategic alternatives." Chairman John D. Zeglis said the company had had "many" contacts from prospective bidders.
Depending on its response to the situation, DoCoMo could see its global strategy — which is already in tatters — disintegrate further, or find itself spending a fortune in a market that has frustrated its ambitions and tested its patience for the past three years.
According to people familiar with the matter, DoCoMo has outlined a number of options regarding AT&T Wireless, including increasing its investment to gain control of the company.
However, mounting a takeover bid for AT&T Wireless would represent a huge gamble for DoCoMo, which has seen the value of its investment drop since it agreed to inject $9.8 billion into the company in mid-2001.
In the past week, U.S. investment bankers and analysts have questioned whether DoCoMo is really interested in taking control of AT&T Wireless or is just hoping to use its position as a bargaining chip when negotiating with potential buyers. The consensus in the Japanese investment community is that DoCoMo is unlikely to take part in any bidding war.
The company has been burned by its overseas foray, which has cost it a staggering $17.4 billion, much of which has been written off. Its track record does not give investors much cause to believe that DoCoMo could manage a large overseas acquisition, particularly one in a business culture that is so markedly different from that in Japan.
In addition to its poor record, DoCoMo faces the prospect of its first earnings downturn, due to the changing competitive landscape of its own domestic market, according to one DoCoMo executive. Last year, KDDI, Japan's second-largest carrier, raised the stakes by offering a flat rate for third-generation data services, a move that is expected to bring the price of 3G down rapidly — together with operators' profit margins.
For many DoCoMo insiders, it is not the right time to be gambling money on a foreign operator when the funds could be better spent on bolstering the domestic business.
To complicate matters, Keiji Tachikawa, who has been at the helm of DoCoMo for five years, is expected to hand over the baton this year with a decision expected as early as March. The most likely candidate to succeed him, Shiro Tsuda, is not known to be as strong a supporter of global expansion as Tachikawa has been.
Then there is the problem of a lack of human resources and experience to manage an acquisition of that size. DoCoMo management has frequently said the group does not have the necessary resources to take over a large foreign company.
Nevertheless, there is persistent speculation that DoCoMo will take part in the bidding, either on its own or jointly with one of the other U.S. carriers.
If it does not make an offer, DoCoMo's plans for the global spread of its i-mode wireless data service and early rollout of 3G W-CDMA services could fall apart.
"What will their global strategy be then? They will have to explain [that] to their investors," said Hitoshi Hayakawa, telecommunications analyst at ING Securities in Tokyo.
To make an offer for AT&T Wireless, DoCoMo would have to amend its agreement with the company that prevents it from increasing its stake. DoCoMo has hired Goldman Sachs & Co. and JP Morgan Chase to advise it on its options, according to bankers familiar with the situation.
One banker suggested the smart thing for DoCoMo to do would be to participate in the auction to raise the price. "But up to a certain point only," the banker said, "since DoCoMo will not be able to justify having to own AT&T Wireless, especially since it won't be cheap."
Having taken a massive write-off on its investment, a sale to another buyer would at least allow DoCoMo to report a handsome profit on its shares in AT&T Wireless, which are believed to be on its books at about $5 to $6 a share, compared with AT&T Wireless' Friday share price of $10.61.
Billions of Text Messages Ring in Chinese New Year
Fri Jan 23, 7:29 AM ET Add Technology - Reuters to My Yahoo!
BEIJING (Reuters) - Chinese mobile phone users are expected to send 10 billion short message greetings during the seven-day Lunar New Year holiday that began on Thursday, Xinhua news agency said.
"At present, sending short messages has become a convenient means of communication for mobile phone users in China," the agency said on Friday.
At the end of 2003, China had some 260 million mobile phone users.
"And the number is still increasing fast," Xinhua said.
QUALCOMM INC WIRELESS COMMUNICATIONS
By James S. Granelli, Times Staff Writer
Boosted by the popularity of mobile phones with cameras and color screens, Qualcomm Inc. on Wednesday posted a 46% jump in profit in its fiscal first quarter.
Qualcomm, which pioneered the wireless technology used by Verizon Wireless and Sprint PCS, reported net income of $352.3 million, or 43 cents a share, for the three-month period ended Dec. 28. It earned $241.3 million, or 30 cents a share, during the same period a year earlier. Sales rose 13% to $1.24 billion from $1.1 billion.
San Diego-based Qualcomm benefited partly from gains by industry-leading Verizon Wireless. Qualcomm's upbeat forecast for its current fiscal year -- a 40% to 45% spurt in earnings and a 6% to 10% hike in revenue -- is based partly on its decision to roll out nationwide its high-speed, data-only service.
The Verizon Wireless network and handsets use Qualcomm technology known as CDMA, or code division multiple access. Though dominant in the U.S., CDMA is second worldwide to GSM, or global system for mobile communications. But CDMA is gaining, particularly in Asia and India.
"They're stronger than they look and seem," said analyst Thomas Sepenzis at investment banker ThinkEquity Partners in San Francisco. "Qualcomm is going to emerge in a year or two as one of the dominant wireless players worldwide."
Qualcomm owns most of the rights to the CDMA technology, and royalty fees accounted for 28% of its quarterly revenue.
But it also owns a chunk of technology rights in GSM's future, the third generation of mobile phones with high data speeds.
Excluding its Qualcomm Strategic Initiatives investment arm, Qualcomm earned $419 billion, or 51 cents a share, for the quarter. Analysts had been expecting 48 cents a share.
Shares fell 11 cents to $58.77 in regular Nasdaq trading and were as low as $58.57 in after-hours trading after the earnings announcement.
Intel braves new world of WiMax
By Richard Shim
CNET News.com
January 21, 2004, 2:45 PM PT
URL: http://zdnet.com.com/2100-1103-5144887.html
SAN JOSE, Calif.--An emerging wide-area wireless broadband technology known as WiMax shows promise as a "last mile" solution for bringing high-speed Internet access into homes--but it's still a few years away from general availability, according to an Intel executive.
"WiMax can be a big deal in the next five years--the way Wi-Fi has been over the last two years," Intel Executive Vice President Sean Maloney said at the Wireless Communications Association conference here Wednesday. "Getting fiber would be ideal...but the cost economics (of installations), about $300 per square foot in San Francisco, are pushing away from (broadband) to wireless."
The 802.16 standard was approved in January of last year and the WiMax Forum, an industry group of 67 companies, is promoting the standard under the name WiMax, short for Worldwide Interoperability for Microwave Access. WiMax networks have a range of up to about 30 miles with data transfer speeds of up to 70mbps.
WiMax is viewed as a cheaper alternative to digital subscriber lines and cable broadband access, because the installation costs of wireless infrastructure are minimal, when compared with the wired versions, which can involve laying cables and ripping up buildings and streets, in some cases.
WiMax is not yet a reality, considering that even chips based on the technology are not currently available. Venture capital is pouring into WiMax, however, according to Maloney, and companies are preparing to meet demand.
Intel is expected to begin shipping WiMax chips in the second half of this year. The company will manufacture chips based on the 802.16d standard, which is meant for wireless high-speed connections to antennas.
Outdoor installations of WiMax antennas will begin in the first half of 2005, with indoor installations of WiMax antennas following in the second half. Devices that have WiMax chips using what will be the portable 802.16e standard may be available at early as 2006.
802.16e chips will enable devices to directly connect to WiMax antennas.
Intel also announced that it is working with telecommunications equipment companies, including Airspan Networks, Alvarion, Aperto Networks and Redline Communications, on WiMax equipment that uses Intel silicon. Telecom carriers working with Intel include BT in the United Kingdom, Iberbanda in Spain, PCCW in Hong Kong and Reliance Infocomm in India.
Intel has promoted wireless networking and Wi-Fi through its $300 million marketing campaign for its Centrino bundle of chips, which includes the company's Pentium M processor, chipset and Wi-Fi components. But it won't be doing the same for WiMax, which it views as a complement to Wi-Fi. WiMax is an infrastructure technology, meaning that it enables carriers and their equipment partners to distribute broadband access.
"For the next two years, WiMax is an infrastructure play," Maloney said.
3Com's No Steal
By W.D. Crotty
January 20, 2004
Somebody certainly sees something they like in struggling network equipment provider 3Com (Nasdaq: COMS). Near a 52-week high, the stock is up nearly 100% in a little over a year.
Indeed, there is beauty on the balance sheet: $1.3 billion in cash and no debt. That's about as clean as it gets. The company's performance over the last three-and-a-half years, though, has been nothing but bad, including net losses totaling $2.1 billion. Ouch!
The ugly: the company's options program. During the last six months, the company has issued 8.8 million options -- a whopping 2.3% of the outstanding shares. With a total of 73.5 million options currently in play, the potential dilution is at 19%.
3Com moves through fiscal year 2004 saying, "...we believe that we must further reduce total operating expenses over the next several quarters to be less than $100 million per quarter, as compared to $171.8 million for the most recent quarter, in order to achieve profitability." Clearly, after years of cost cutting, this particular ugliness will continue.
And management readily admits that 3Com's future is tied to its 49% minority interest in a joint venture with China's largest manufacturer of telecom equipment, Huawei Technologies. The venture's router and modular products target telecom giant Cisco (Nasdaq: CSCO) -- a 900-pound gorilla that appears to be taking Huawei seriously.
A strong partner to be sure, Huawei recently formed another joint venture with German electronic giant Siemens (NYSE: SI) to develop 3G wireless products. Huawei also sells next-generation network equipment in China with software giant Microsoft (Nasdaq: MSFT) and has agreements with Intel (Nasdaq: INTC), Infineon (NYSE: IFX), Qualcomm (Nasdaq: QCOM), and others.
Still, as strong as Huawei is, 3Com isn't cheap. Sales were up 14% in the most recent quarter, but the company is not projecting profitability for fiscal year 2004. And yet, the stock sells for four times revenue -- and that's before the options dilution. Clearly, investors see more good than bad and ugly in the years ahead.
Discuss these companies with other investors on the Motley Fool discussion boards. For a 30-day free trial to the discussion boards, click here.
You can email Don Crotty at wdcrotty@fool.com.
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OT: Pochemunyet, You are correct. EOM
OT: Sorry, Ule Brenner not Carlton Heston. EOM
OT: My3
...I think the whole licensing brohaha will abate with the resolution of Nokia and Samsung. And that should be for all G's.
"So let it be done, so let it be written!"
[Carlton Heston quote from the movie Moses]
mschere - This has been around for awhile but notice the "Registration Date" of December 16, 2003. Not long after the "Filing Date" I posted this Trademark on Raging Bull. I suspect we will soon see this WIRELESS TECHNOLOGY TO MOVE YOUR IDEAS in connection with an IDCC product offering in the near future. JMHO
____________________________
Word Mark WIRELESS TECHNOLOGY TO MOVE YOUR IDEAS
Goods and Services IC 009. US 021 023 026 036 038. G & S: software for operating wireless and digital telecommunications equipment. FIRST USE: 20000131. FIRST USE IN COMMERCE: 20030831
Mark Drawing Code (1) TYPED DRAWING
Serial Number 75630969
Filing Date February 1, 1999
Current Filing Basis 1A
Original Filing Basis 1B
Published for Opposition June 27, 2000
Registration Number 2795093
Registration Date December 16, 2003
Owner (REGISTRANT) InterDigital Communications Corporation CORPORATION PENNSYLVANIA 781 Third Avenue King of Prussia PENNSYLVANIA 194061409
Attorney of Record John J. O'Malley
Disclaimer NO CLAIM IS MADE TO THE EXCLUSIVE RIGHT TO USE "WIRELESS TECHNOLOGY" APART FROM THE MARK AS SHOWN
Type of Mark TRADEMARK
Register PRINCIPAL
Live/Dead Indicator LIVE
http://tess2.uspto.gov/bin/gate.exe?f=doc&state=sfc12k.2.3
I have just finished watching that Discovery Channel regarding Samsung. It was an excellent presentation. (IMO) IDCC is in the tech-mix that was described as being the future. Our wait is much shorter now.
MLK = Martin Luther King
Survey shows rural carriers prefer GSM over CDMA
by Heather Forsgren Weaver
Jan. 16, 2004 1:26 PM EST
WASHINGTON--GSM, not CDMA, is the choice of rural carriers that plan upgrades this year, according to a survey released Thursday by the National Telecommunications Cooperative Association.
"Virtually all of the survey respondents who offer wireless to their customers indicated that they intend to upgrade within the next 12 months, with GSM preferred over CDMA by more than two to one," reads the survey.
NTCA represents small rural carriers that offer primarily wireline services to their customers. These carriers were originally created to provide telecommunications services to their areas when Ma Bell would not. In 2002, it surveyed its members to see whether they offer wireless services. The survey released Thursday updates the 2002 results.
In the fall of 2003, 135 (28 percent) of NTCA's 560 members responded to the online survey.
While the survey respondents said they are preparing to upgrade their wireless facilities, they are having financing difficulties, with 75 percent saying that obtaining financing is "somewhat difficult" to "virtually impossible."
NTCA's members are using loans from the Rural Utilities Service with 19 percent saying they have either successfully obtained financing or their applications are still pending.
Rural carriers would rather use licensed, not unlicensed, spectrum to serve their customers, according to the survey. "While unlicensed spectrum provides some relief for those carriers who are unable to obtain spectrum licenses at auction, it is far from an ideal solution to the problem. Nearly 40 percent of survey respondents are currently utilizing unlicensed spectrum to provide wireless services. Several, however, indicated difficulties with interference from other unlicensed spectrum users--a problem that will continue to worsen as more and more wireless users try to use a limited available quantity of unlicensed spectrum. Tellingly, an overwhelming majority of respondents would prefer access to additional licensed spectrum over additional unlicensed spectrum," reads the survey.
Allocating unlicensed spectrum is currently popular with Michael Powell, chairman of the Federal Communications Commission, often citing rural America as the place that unlicensed is most welcome to provide broadband to customers. Last fall, Powell and a group of journalists toured a rural Virginia company that offers unlicensed broadband services. Verizon Communications Inc., not a rural carrier, serves that area of the Blue Ridge Mountains. Rural carriers often tout how they offer broadband to their customers, while the regional Bell operating companies often serve their rural customers last.
Is Qualcomm Maturing To Become A True Silverback Gorilla? (QCOM - $59.92 - Jan. 15, 2004)
Friday January 16, 1:00 pm ET
LAKE OSWEGO, Ore., Jan. 16 /PRNewswire/ -- An article on Qualcomm was issued today by Randy Durig of Durig Capital, LLC.
What do I think the next great revolution in technology will be?
Who do I think is properly positioned to take advantage of the next
revolution?
Have I changed my mind about who I think the next technology gorilla will
be?
The question I'm asking is, can Qualcomm's (QCOM) growth achieve a
promotion to the position of alpha or silverback gorilla like they did in
the past? I believe the answer is yes and I would like to explain why I
think Qualcomm is on its way to becoming the king of the wireless jungle.
To see this article in its entirety and/or other articles written by Randy Durig, please visit to www.durig.com. We invite your comments and questions at http://www.durig.com/page5.html or email rdurig@fwg.com
German Stock Exchange - I used to have a link to check the price of Interdigital in Europe. As I recall the stock symbol was something other than IDCC. Does anyone have that link and symbol? TIA
Motorola, others pick up $2.3B in Chinese contracts amid rising trade tensions
by JEFFREY SILVA
Jan. 13, 2004 12:36 PM EST
WASHINGTON--Motorola Inc. today signed deals totaling $1.1 billion with China's top mobile-phone carriers, and other U.S. wireless firms picked up multimillion contracts in the world's largest wireless market. The transactions come at a time of rising trade tensions between the two countries.
In all, $2.3 billion in deals--most wireless--were announced at a signing ceremony here at a U.S.-China seminar on prospects for cooperation in the telecom and information-technology sectors. Lucent Technologies Inc. snagged $350 million worth of contracts with China Unicom and China Telecom.
Other contracts with China were picked up by Intel Corp., UTStarcom Inc., Nortel Networks Ltd., Cisco Systems Inc. and Sony Ericsson Mobile Communications. Motorola's $556 million contract with China Unicom is geared to upgrade the operator's GSM networks and contribute to the expansion of its 1x CDMA wireless systems. The Schaumburg, Ill., company's $510 million pact with China Mobile Communication Corp., the nation's biggest cell-phone operator, will help build out the carrier's GSM systems and improve data services in Beijing and 13 provinces.
The event, which drew Commerce Secretary Donald Evans and Chinese officials from government and industry, follows high-level talks in recent months between Bush administration and Chinese authorities on trade and other issues.
In December, the U.S. Trade Representative sent Congress a report saying China has failed to implement market-opening reforms required by World Trade Organization membership. While administration officials said U.S. exports to China are increasing, America's trade deficit with China is now more than $125 billion.
However, with the business opportunities in China arguably greater than anywhere in the world, the Bush administration has largely avoided caustic rhetoric about the staggering trade imbalance with China, the yen valuation and other fractious issues.
But in the domestic arena, seeing that the U.S. economic recovery is not producing jobs this election year, the White House has been forced to give the U.S.-China trade issues higher priority.
Chips selected by handset makers
by Sam Omatseye
Jan. 13, 2004 1:28 PM EST
Two chip companies say their chips have been selected for wireless devices, while another has begun shipments of its products.
Nvidia Corp. said its multimedia graphics processor known as GoForce 2100 will be in the innards of Mitsubishi Electric's latest i-mode mobile phone, the M 341i.
The processor facilitates video and camera functionality on the handset LCD display, said Nvidia.
"The flexibility of the GoForce 2100 chip meant that we could write games directly to the graphics engine on the M341I handset. This combined with the extremely low-powered design and the quality of the color display makes it the perfect partnership," said Stephane Le Provost, multimedia program leader for Mitsubishi.
Skyworks Inc., which describes itself as the biggest wireless-only chip company, said Quanta Inc. has selected its power amplifier module and transceiver for a new line of GPRS handsets.
Quanta plans to introduce the handsets in China, Asia, Europe and the Americas during the coming months.
"Skyworks will be supporting Quanta's launch of numerous other GPRS phones to its ODM customers throughout 2004, including handsets with embedded cameras and color displays," said Skyworks.
RF Micro Devices Inc. said it has begun shipments of a power amplifier module and driver IQ modulator for Sony Ericsson's GC82 EDGE PC card.
The PC card offers corporate and laptop users wireless connections to the Internet and to corporate intranet sites, said RFMD.
The Year of the Mobile Worker
By John R. Quain and Don E. Sears
January 12, 2004
It may be the year of the monkey in the Chinese calendar but according to the tech calendar, this is going to be the year of the mobile worker.
Why? Because wireless communication is finally a practical tool for small and large businesses.
ADVERTISEMENT
Wi-Fi, for example, was once a novelty in coffee shops and downtown cafes. Now road warriors habitually flip open laptops in airports and hotel lobbies and expect to be instantly connected to the Web. Rogue access points in the enterprise are a daily headache. And improved data services and better smart phone designs (yes, we actually like the Treo 600) are enticing more people to cut the cord and deal with e-mail away from the office.
Indeed, one study by Ipsos-Reid found that a typical mobile worker who tapped into wireless e-mail was able to recover an average of 53 work minutes a day. That spells improved productivity, immediacy and flexibility for workers--and more work for IT departments. So, to help you keep up with the latest gear, gadgets and 802.11 standards, we've brought it all together here in this Mobile Worker guide.
A Guide for the Mobile Worker
When one of the largest wireless phone service providers in the United States decides to change its tune on its wireless-performance needs, you know it's the year of the mobile worker. Verizon Wireless, in an effort to take back the performance lead from AT&T Wireless, announced plans that "it will spend $1 billion ... with an even speedier technology that just months ago the company insisted was not an urgent need."
What better way to have a guide in January than with a predictions column? Here's a look at John R. Quain's take on what's on tap for 2004: "If there is one clear signal to be detected in the ether of the wireless world, it is the voice of the end user. ... Analysts at the META Group recently crowed that 802.11 wireless access won't be a major factor in large enterprises this year. Don't believe it. The end user has spoken, and Wi-Fi is invading the enterprise whether IT departments want it or not."
There's no way to have a full discussion of wireless's near future without examining security concerns. Security researchers and the press have had a field day exposing more and more security vulnerabilities in wireless networks. If you believe the hype, you would think wireless networking so porous as to be useless.
eWEEK.com aims to help distinguish the hype from reality. Here's our special report, "Wireless Security: The Gaps and How to Fill Them," full of analysis and advice on how to best secure wireless networks, control wireless chaos and find technologies that won't kill your budget.
It may not happen this year completely, yet eWEEK Labs' Cameron Sturdevant takes a close look at the emerging 802.3af specification, Power over Ethernet, in his column "Power Over Ethernet Will Be Part of Your Future," where he astutely highlights trends for the mobile industrial worker: "From the factory floor and walk-in freezers to HVAC equipment and security-badge readers, new low-power, easy-to-install devices will start to pop up wherever IT can run an Ethernet cable."
Radio frequency ID (RFID) tagging, a wireless inventory tracking technology, has had a lot of attention over the past year, largely due to Wal-Mart Corp.'s mandate that all of its suppliers be compliant with the technology by 2005. And while there are many issues to be worked out (privacy, security and huge capital costs), there are some industrial mobile worker applications to this technology already reaping benefits.
Here's what Joseph C. Panettieri, who is the editorial director of the New York Institute of Technology, said in his recent eWEEK article "Time Is on RFID's Side": "Instead of blanketing the supply chain with RFID, some manufacturers are embracing the technology on a smaller scale. ... In one example, RFID readers prevent forklifts from placing the wrong materials into a mechanical mixer. ... International Paper Co. recently activated a similar tracking system. ... The system transmits routing instructions to forklift operators in real time using RFID. Each roll of paper in the factory has a unique RFID tag ..."
And finally, last week's 2004 Consumer Electronics Show in Las Vegas was a significant indicator of what will further the "always-on" cause for the mobile worker's road, home and virtual offices. Take a look at what concepts, gear and gadgets our Ziff Davis comrades found out in Sin City from this year's CES. We are certain this info will make your telecommuting and communication better from any location:
Wi-Fi testing finds weak links
Hundreds of wireless products don't meet standardsBy Graeme Wearden
Updated: 7:00 p.m. ET Jan. 12, 2004At least one in every four Wi-Fi products examined by the Wi-Fi Alliance has failed its certification test — a sign that many pieces of wireless equipment on the market are incapable of working as well as users might expect.
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The Wi-Fi Alliance announced last week that it has now certified more than 1,000 products since its testing program began in March 2000.
Products that sport the Alliance's seal of approval are certified to work with each other and provide the performance expected from the 802.11a, b or g standards. This means that users can buy certified 802.11x routers, access points and cards knowing that they should all be compatible.
But while a great many Wi-Fi products have been approved by the Alliance, several hundred did not pass its tests.
"Based on testing of more than 1,000 products over several IEEE 802.11 standards, products that are prepared for Wi-Fi certification testing fail 25 (percent) to 30 percent of the time--or more depending on the technology being tested," said Wi-Fi Alliance managing director Frank Hanzlik.
"Products that do not go through the rigorous testing preparation process have an even higher failure rate. Without Wi-Fi certification, these product failures would have been experienced by the technology consumer," Hanzlik added.
A product that fails Wi-Fi certification can still be launched, though, and a manufacturer could still label its wireless products as "802.11b compatible" even if they only work with its own range of equipment and not with those from another company.
The Wi-Fi Alliance says that certification is becoming increasingly important as the wireless-networking market grows and matures.
"New features and the growing number of additional chipsets make Wi-Fi certification more important than ever to consumers and enterprise IT managers," said Hanzlik.
A list of products certified by the Wi-Fi Alliance can be seen at its Web site.
Wal-Mart CEO promises 'tough love' approach to RFID use
By CAROL SLIWA
JANUARY 12, 2004
NEW YORK -- Wal-Mart Stores Inc. is taking a "tough love" approach to the use of RFID tags with its top 100 suppliers, which are being asked to ship pallets and cases to its distribution centers using the technology by January 2005.
H. Lee Scott, president and CEO of the Bentonville, Ark.-based retailer, said yesterday during a keynote address at the National Retail Federation annual conference here that there's pressure to move the suppliers to radio frequency ID technology "but also an understanding that we're not trying to hurt 'em either.
"If they just can't do it, I mean, it's not like we're going to quit doing business with them," Scott said.
Only Wal-Mart's top 100 suppliers face a January 2005 deadline the retailer set for compliance, but the rest have been asked to follow suit by the start of 2006. Wal-Mart late last year informed its top suppliers during a meeting in Arkansas that the RFID rollout will start at its three Texas distribution centers, which service about 150 stores, and continue incrementally across the country.
Plans call for the time frame for the remainder of the 108 distribution centers and 3,000 stores to be shared later, on a rolling basis, with suppliers through Wal-Mart's RetailLink extranet site.
In response to a question, Scott said that his view of the time frame is that it's realistic, "but if it isn't, we'll back off." He said he met last week with suppliers, and "they were very positive in what they were doing."
"I don't think they were just doing that -- I don't know what the technical term for it is -- we call it sucking up," Scott said, his comments greeted by laughter from many of the more than 2,000 retailers and industry observers in attendance. "But I think many of our suppliers are right in the midst of it and involved."
Scott told the attendees that RFID is "a very important innovation," and the benefits will be seen over the long term -- not in 2004. He said RFID ultimately will allow retailers and suppliers to drive costs out of the business and do a better job of keeping items in stock. They, in turn, will be able to pass cost savings on to consumers.
"We will get more efficient as an industry," Scott said. "The competitiveness of this industry means that savings get passed on to the consumer. There isn't anybody in this room in retail that I know of who can simply take savings and keep it in the bottom line, in profit, because if you do, you know your competitor is passing at least a portion of it on and you're going to be disadvantaged from a price standpoint. So a consumer benefits when we do this."
Scott said the industry has always seen pushback on capital investments in new technology, such as the use of bar codes. The leaders tend to be the ones "who most capitalize on that technology.
"In Wal-Mart's case, we had a lot of resistance to RetailLink when we established RetailLink, and we asked suppliers to buy a computer," Scott said. But he said those suppliers are now able to see why a particular product line might not be doing well in a particular market or store, and they can analyze the statistics by department and by individual item if they choose.
Meanwhile, SAP AG said today at the National Retail Federation show that it is rolling out an integrated application suite to automate the process of extracting and exploiting data generated by RFID tags through the company's supply chain management systems.
The ERP software maker announced a set of Java-based RFID enhancements to its applications that it claims will help retailers and consumer product manufacturers improve things such as tracking processes through the supply chain.
The SAP software will support the management of the RFID tags, along with bar codes and sensors. The system requires SAP's new Auto-ID Infrastructure software, along with the existing supply chain Event Management and Enterprise Portal products. It also requires the company's Web Application Server for integration with both SAP and third-party or homegrown applications. Using connectors, the software will work with existing systems built on SAP R/3 4.6c and higher.
The company also promised that it and partners will deliver services to customize these systems for a customer's specific needs.
The applications are available in pilot now and will be more generally distributed by midyear.
Computerworld's Marc Songini contributed to this report.
HP moves to bolster intellectual property rights enforcement
It's now No. 5 on the list of top companies receiving patents
Story by Patrick Thibodeau
JANUARY 12, 2004 ( COMPUTERWORLD ) - Hewlett Packard Co., said today that it plans to increase enforcement of its intellectual property, a move aimed at vendors selling products based on HP technology -- not at the users of those products.
HP's announcement of the formation of a centralized IP licensing organization was designed to coincide with today's release by the U.S. Patent and Trademark Office of a list of top companies receiving patents.
HP moved from ninth place on that list to No. 5, receiving 1,759 patents while maintaining a relatively flat annual research and development budget of about $4 billion over the past few years, company officials said. The top spot on the patent list was again held by IBM, which received 3,415 patents last year, up slightly from 3,288 in 2002. It was IBM's 11th consecutive year as No. 1.
HP's Plans
"There is no intention at all to go after end users," said Joe Beyers, who as vice president of IP licensing at HP will head the newly created unit. He said his unit will focus on firms that ship products using HP's technology and will work to do more to make companies better aware of IP licensing opportunities, he said.
In addition to IBM and HP, two other U.S.-based companies were in the top 10, Micron Technology Inc., which was No. 6, and Intel Corp., which was No. 7. Micron was third in 2002, and Intel was in 15th place that year.
After IBM, the list breaks down like this: Canon Kabushiki at No. 2 with 1,992 patents, followed by Hitachi Ltd. with 1,893, Matsushita Electric Industrial Co. with 1,786, HP, Micron with 1,707, Intel with 1,592, Philips Electronics NV with 1,353, Samsung Electronics Co. with 1,313, and Sony Corp. with 1,311.
HP officials in an interview said the company had been managing its IP on an "ad hoc" basis by business units and had missed out on opportunities to "gain additional value" from its portfolio.
The company has started several licensing programs, including technology involving DVD+RW, a format for rewritable DVDs; HP Auto-MIDX Networking, a technology for automatically configuring local area networks; and Ultrium, a format for next-generation linear data storage.
sloane6 - You asked, "Why doesn't IDCC make some claims such as qcom makes?"
To reply to a question with a question:
Why doesn't QCOM claim to have essential IPR in all 5 ITU approved standards like IDCC does?
Pre market - 19,362 @ $24.47 @ 9:08. EOM
http://quotes.nasdaq.com/quote.dll?mode=frameset&kind=&symbol=IDCC&symbol=&symbol=&a...
Philips, Visa advance wireless pay cards
By Richard Shim
CNET News.com
January 8, 2004, 4:18 PM PT
URL: http://zdnet.com.com/2100-1103-5137952.html
LAS VEGAS--Philips Semiconductor and Visa International detailed plans to further develop an emerging short-range wireless technology that aims to let shoppers pay everywhere they want to pay--without opening their wallets.
Visa and the chip division of Royal Philips Electronics last year announced an alliance to work together on Near Field Communications (NFC) technology. At the Consumer Electronics Show here Thursday, the two companies demonstrated the fruits of their labors thus far and announced that content providers and consumer electronics makers will be adding the technology to their products.
"There will be a rolling string of announcements, from content providers and product makers, in the coming year," Philips Semiconductor Chief Scott McGregor said.
According to partnership terms, Philips will provide the chips, and Visa will convince merchants to support the technology. For merchants, the technology will mean that customers will be able to get out of a store faster, because the technology lets them pay for items simply by swiping an NFC card over a reader.
Philips and Visa hope that NFC will expand the ways consumers pay for products or services. The companies expect consumer electronics makers to put chips that use the technology into products so that consumers will be able to pay for items using a cell phone and through their Visa accounts, for example. Sony is working to add the NFC technology to its products.
The secure technology uses radio waves to send and receive the data used in a transaction, according to McGregor. The NFC chips are expected to cost tens of cents.
Philips is working with content providers such as Vivendi Universal to use the technology.
Philips and Visa share a common vision that consumers someday will be able to pay for physical and digital services anywhere, at any time and on any device, according to Gaylon Howe, an executive vice president at Visa.
"Anything that has to do with payments, we want to be involved in and understand," Howe said.
Theater in Your Pocket
By Sebastian Rupley
January 8, 2004
Want to watch your favorite Friends episodes during the train ride to work on a device small enough to fit in your pocket? That's exactly one of the planned applications of Microsoft's new Portable Media Center strategy.
Portable Media Center is a new, Windows CE-based operating system similar to the company's desktop multimedia-centric OS, Windows XP Media Center Edition 2004. The software synchronizes with any Windows XP system to provide digital videos, feature-length movies, digital music, television shows, photos, and music videos on the go.
Portable Media Center will run on pocket-size devices (see photo) that will be developed by third parties and have 3.5-inch displays, 64MB of RAM, and hard disks of from 20GB to 60GB. Microsoft is in partnership with hardware vendors, including AboCom Systems, Creative, iRiver, Samsung, Sanyo, Tatung, and ViewSonic, who will ship gadgets, priced from $400 to $700, in the second half of this year.
Microsoft's software employs Windows Media Series (WMA) codecs and formats. "The compression is strong enough to store 175 hours of video--enough for every episode of The Simpsons--on the 40GB device," says Frank Barbieri, a Microsoft group product manager. There are navigation shortcuts in both the hardware and the software. For example, Creative's device has preset buttons for jumping to favored content.
Portable Media Center devices will have USB 2.0 connectivity, headphones, and A/V output for streaming to a TV, stereo, or other device. Battery life will be "at least long enough for one full-length movie," claims Barbieri. Microsoft is in partnership with CinemaNow to provide what will purportedly be DVD-quality digital movies for the devices, and movies will be rentable, governed by digital rights management software. Napster is the primary partner for music content.
The new OS, gadgets, and entertainment partnerships signal closer competition with Apple in the entertainment arena. While fully stocked Portable Media Centers will be more expensive than Apple's iPods, extras such as video and movie playback could call for a quick answer from Apple. Stay tuned.
micromays2 -
You quoted Akinobu Kanasugi - President, NEC Corporation, as follows, " we can all grow, discover, and innovate - moving together toward the dream that we all share."
My take is similar to when Edison said that his new invention of the electric light would make it so that only the rich could afford to buy candles. Maybe Kanasugi wants only for the rich to be able to afford landline phone connections. (Just a thought)
rtd - It has been too long since I have heard from you! Have you and Loop selected a place for the "Houston 100" yet? My impression is that Bonnie's may be large enough to handle that capacity crowd that we are expecting but that the parking lot there may NOT be large enough! Keep your eyes on those hemlines and IDCC in 2004! All my best,
Dr. Calhoun, 51, has spent 25 years in the high-tech segment of the wireless communications industry and is an Executive-in-Residence at Hoboken, NJ-based Stevens Institute of Technology, where he teaches in the Undergraduate Program for Business & Technology, at the Howe School of Technology Management. He is one of the co-founders of King of Prussia, PA based InterDigital Communications Corporation (Nasdaq: IDCC - News), where he was involved for 12 years in the pioneering development of digital cellular technology. Subsequently, he was Vice-Chairman of Debary, FL-based Geotek Communications, and was Chairman of an engineering joint venture based in Israel. Most recently, Dr. Calhoun was the Chairman and CEO of Mount Prospect, IL-based ISCO International, Inc. (Amex: ISO - News), a company focused on the application of high-temperature superconducting materials and advanced signal-processing techniques. He is also a Board member and Audit Committee Chairman for Melbourne, FL-based Airnet Communications (Nasdaq: ANCC - News), a smart antenna and software-defined radio technology company. Dr. Calhoun holds one patent (on wireless system architectures) and has published several books on wireless communications.
http://biz.yahoo.com/prnews/031230/latu010_1.html
HP would be good - Dell would be better. Some maker of laptops should be wanting to break into Asia and Europe.
Handset Sales In Europe Look Strong - Report
Wednesday December 24, 11:23 am ET
By Tom Becker, Of DOW JONES NEWSWIRES
NEW YORK (Dow Jones)--Handset sales in Europe climbed in October and November, putting the region in position to have a very strong fourth quarter, according to data from research firm GfK AG .
December handset sales "may be tracking slightly ahead of expectations," said Stuart Jeffrey, an analyst with Lehman Brothers Inc. December is typically one of the strongest months for handset sales as consumers purchase phones for the holidays. Jeffrey estimates December sales typically account for as much as half of all fourth quarter sales.
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GfK said handset sales surged 14% in October and November compared to the same time last year.
The figures suggest "handset demand remained strong during the first two months of the quarter," Jeffrey said. "We recognize, however, that December is key." Last year, December sales increased 70% compared to November sales, the analyst said.
Jeffrey said recent announcements by some of the biggest players in Europe suggest December sales are ahead of many expectations.
"Orange indicated last week that handset demand may prove to be double what it anticipated in June," he said. "Orange noted that it is facing supply constraints from Motorola (NYSE:MOT - News), Siemens, and Samsung. We believe that this condition likely applies to other carriers as well."
Meanwhile, Jeffrey said there is potential for two- to four-weeks of excess inventory in the first quarter of 2004 in the U.S. thanks to the muted impact of wireless number portability. During the same time last year, the U.S. market had one- to two-weeks of excess inventory.
"As the impact of wireless number portability on churn rates has proven modest in general, we believe that some inventory may build during the quarter," Jeffrey said. "Checks with carriers reveal no concern about the ability of the industry to sell those devices given strong subscriber momentum."
-By Tom Becker, Dow Jones Newswires; 201-938-2020
TO ALL - Merry Christmas!
Have a great Christmas and please drive safely during the holiday season.
Peace to all.
All my best,
Glenn
IPO, merger speculated for Cingular Wireless
Dec. 23, 2003 2:50 PM EST
NEW YORK--Cingular Wireless L.L.C.'s parent companies SBC Communications Inc. and BellSouth Corp. are reportedly looking at an initial public offering for their wireless division sometime next year to help fund expansion plans that could include a merger with industry rival AT&T Wireless Services Inc., according to a report in the Wall Street Journal.
"At Cingular, there is strong momentum building for both an acquisition or an IPO," an unnamed source told the Wall Street Journal. "This is more than just running scenarios."
A number of industry sources have made similar predictions of a possible Cingular/AT&T Wireless merger noting both carriers have been cleaning up their balance sheets and consolidating their operations for such a move. Cingular was rumored to be looking at acquiring T-Mobile USA Inc. last year, but was reportedly rebuffed by T-Mobile USA parent company Deutsche Telekom AG.
The news sent AT&T Wireless' shares up more than five percent in early Tuesday trading to nearly $8 per share with above average trading volume.
Edge Wireless deploys Alcatel MMS system
Dec. 22, 2003 2:42 PM EST
DALLAS—AT&T Wireless Services Inc. network partner Edge Wireless L.L.C. deployed Alcatel’s Multimedia Messaging Services system designed to enable Edge Wireless customers to send and receive MMS messages. Alcatel noted the service allows users to send messages to other MMS-enabled handsets and between e-mail addresses and mobile phones.
AT&T Wireless launched a similar service for its GSM-based customers as have a number of other GSM and CDMA carriers.
DoCoMo unwraps line of advanced phones
Reuters
December 18, 2003, 5:55 AM PT
URL: http://zdnet.com.com/2100-1103-5128644.html
Japan's largest mobile phone operator, NTT DoCoMo, on Thursday unveiled five new phones for next year that let consumers play fast-action games, send e-mail with graphics and download bigger files--the company's bid to fuel demand for its advanced wireless service.
The introduction of the new lineup has been anticipated as an indication of DoCoMo's ability to attract new customers in 2004 for its two-year-old 3G (third-generation) service known as FOMA.
FOMA is an advanced network, capable of high-speed Internet connections as well as music and video downloading.
DoCoMo launched the world's first 3G service based on WCDMA (wideband code division multiple access) technology with much fanfare in October 2001, but limited coverage area, bulky handsets and poor battery life discouraged customers from signing up.
"We are confident that this is the world's strongest lineup of handsets," said Takeshi Natsuno, managing director of DoCoMo's I-mode planning department, in an elaborate news conference that featured models showing off the phones against a background of music, lights and video.
Natsuno declined to give an official estimate of the number of handsets it expects to sell, but said he personally hoped to add more than 5 million customers to FOMA through the phones.
DoCoMo had more than 1.6 million FOMA customers at the end of November, according to the Telecommunications Carriers Association. By contrast, its rival KDDI has more than 11 million customers on its 3G service, which is based on a competing technology.
Outside of Japan, Hong Kong's Hutchison Whampoa has also struggled with its WCDMA 3G telecom business in Britain and Italy as it grapples with a shortage of phones.
DoCoMo announced earlier this year it will share about half of the research and development costs for FOMA phones with handset makers, to encourage them.
The company said that the five phones, made by companies such as Fujitsu, NEC and Matsushita Electric Industrial are lighter and have longer battery life than current FOMA phone models.
They also include more multimedia capability.
People can send e-mail that includes animated graphics. The phones can also handle bigger applications and elaborate animations, allowing for interactive games such as "Final Fantasy" and "Dragon Quest."
"The new 900i series phones are clearly focused on driving data usage," said Naoto Nakagawa, an analyst with Yankee Group. "The new phones seem to be enhancements of previous versions rather than completely new designs."
DoCoMo's Natsuno declined to give pricing details but said pricing would be "average."
Motorola chip unit files $2 billion IPO
Last modified: December 17, 2003, 12:15 PM PST
By Ben Charny
Staff Writer, CNET News.com
Motorola's chipmaking unit, temporarily named SPS Spinco, plans to sell up to $2 billion in stock during an initial public offering, according to a filing made Wednesday with the U.S. Securities and Exchange Commission.
The stock offering, underwritten by The Goldman Sachs Group, is expected sometime next year. The filing didn't divulge the price per share or give a specific offering date.
Motorola will continue to own a portion of Austin, Texas-based SPS Spinco until 2005, when it will dissolve the financial relationship, according to the filing. Spinco plans to change its name in the next few months. A Motorola spokeswoman had no comment Wednesday.
The filing also details how Spinco, like many in the semiconductor sector, underwent a financially painful three years of slowing sales brought on by what the company describes as an "abrupt decline" in the demand for cell phones and other digital devices.
Spinco suffered "sizable net losses" of $2.2 billion in 2001, $1.8 billion in 2002 and another $400 million during the first nine months of 2003, according to the filing. As a result, the company cut 11,000 jobs and shuttered a dozen manufacturing facilities. "We believe that we are well positioned to improve our financial results," Spinco said in the filing.
Motorola has committed to buying most of the cell phone chips it needs through 2006 from Spinco, according to the filing. Spinco's cell chips do not use the Code Division Multiple Access standard, which is popular in North America, Latin America and Korea.
The filing comes a day after Motorola announced that former Sun Microsystems President Ed Zander will be its next chairman and chief executive officer. Elected unanimously by Motorola's board of directors, Zander will take the helm Jan. 5, replacing Christopher Galvin, whose grandfather founded the company.
AT&T to swap EDGE card for rival card and contract
by Dan Meyer
Dec. 16, 2003 1:18 PM EST
Through the end of January, AT&T Wireless Services Inc. said it will offer business customers a free Sony Ericsson GC-82 EDGE wireless modem card when they trade in a similar modem card from any national wireless carrier and sign a two-year contract for unlimited data service that the carrier offers for $80 per month.
AT&T Wireless, which offered a similar trade-in deal earlier this year for its Research In Motion Ltd. Blackberry device, noted the data card will also allow access to GPRS networks operated by its affiliates and roaming partners.
A recent report from Allied Business Intelligence found that the wireless modem card market is set for substantial growth following the launch and planned launch of numerous high-speed next-generation networks around the world. The report added that most data network launches have centered on PC cards targeting high-value business customers that typically do not require as high of subsidies as customer-oriented handsets.
"[Cellular PC card] users tend to bring in a higher and sustained [average revenue per user], unlike the pattern with individual users that tends to be cyclical," said ABI analyst Kenil Vora.
Jumping The Hurdles At Huawei
After SARS and a lawsuit from Cisco, the network-gear maker is doing lots of deals and expanding exports
DECEMBER 22, 2003
ASIAN BUSINESS
A few months back, 2003 was shaping up to be a lousy year for Huawei Technologies Co. When SARS swept through Asia last spring, the Shenzhen-based networking-equipment manufacturer lost sales when frightened foreign customers refused to travel to China. A proposed joint venture with 3Com Corp. (COMS ) was delayed as Beijing authorities were slow to grant approval. Worst of all, Cisco Systems Inc. (CSCO ) in January launched a broad lawsuit that lent credence to a damning, years-old rumor: that the Chinese upstart had built parts of its business on technology stolen from the Silicon Valley networking giant.
But as 2003 draws to a close, things look a lot brighter for Huawei. SARS is just a memory -- at least for the time being -- allowing the privately held company to boom along with the Chinese economy, which grew at a torrid 9.1% pace in the third quarter. Huawei's exports are expected to double this year, to $1 billion, as the company's total sales grow 35%, to $3.5 billion. The venture with 3Com, aimed at selling routers to corporate customers, is back on track after Beijing gave it the go-ahead in November. And in October, Cisco agreed to put a hold on the lawsuit. Pending a review of Huawei's technology, the companies will likely settle. Although Huawei withdrew many of its products from the market after the lawsuit was filed, the Cisco case and other troubles "had no effect on our business at all," says Executive Vice-President William Xu.
A host of multinationals -- many of them erstwhile competitors -- are likely to help Huawei continue improving its outlook. "Huawei is clearly on the move internationally," says Bruce L. Claflin, chief executive officer of 3Com. In addition to its deal with 3Com, Huawei is now working with an all-star list of tech companies: Qualcomm (QCOM ), Microsoft (MSFT ), Matsushita (MC ) -- more than a dozen in all. The list keeps growing as the company expands in Europe, Asia, and Latin America. Huawei's attraction: It has great connections in China and offers a foothold in a booming market of 1.3 billion people. And it can tap into a giant pool of low-cost engineers who work for one-fifth what their counterparts in Silicon Valley get, enabling Huawei to sell products for 30% less than rivals such as Cisco. That's a key reason Electronic Data Systems Corp., a longtime Cisco ally, on Dec. 2 signed a deal to sell Huawei gear in the U.S.
In a bit of ironic turnabout, even the Cisco imbroglio may have helped Huawei. "Having Cisco sue Huawei actually proved that they are a player," says Marcus Sigurdsson, an analyst in Hong Kong with Gartner Inc. (IT ). A potential customer hearing about Cisco's low-cost Chinese rival might consider working with Huawei to save money, he says, so the lawsuit was not that much of a problem. "It misfired" for Cisco, says Sigurdsson. For its part, Cisco says it's pleased with the agreement the two companies reached and hopes it will lead to a resolution of the lawsuit. "We're gratified that Huawei changed its products in response to the concerns we raised," says Cisco CEO John T. Chambers.
CHARM OFFENSIVE
To continue growing overseas, Huawei execs realize they need to burnish their company's image. Since it was founded in 1988 by Ren Zhengfei, a former People's Liberation Army officer, many have assumed the company is secretly controlled by China's military. So the company's recent aggressive international expansion has been backed up by a charm offensive. The reclusive Ren still won't grant interviews to the foreign press, but other Huawei execs are happy to sit down with skeptics. They say the company is owned by its employees, not the military. And to counter the impression created by the Cisco case, Huawei executives now insist the company respects competitors' intellectual property. "Before this, we didn't do much promotion of ourselves," says Xu. "People didn't understand Huawei very well."
There are, however, some teeth behind the smiles. Huawei reported to Chinese police that three former employees had given company secrets to their new employer, California-based telecom-equipment maker UTStarcom Inc. (UTSI ). In August, the three were arrested and remain in jail in China. "There was great harm to the company," says Fei Min, a Huawei executive vice-president. UTStarcom CEO Hong Lu denies any secrets were stolen and says the company stands by the three workers.
Key to Huawei's strategy is its push abroad. One focus is selling equipment for cellular networks using a low-cost standard called CDMA 450. Huawei has sold CDMA 450 networks in Portugal, Russia, and Belarus. It's also focusing on high-end routers. In October it signed a deal to sell them to British operator Fibernet Group PLC. And in India, Huawei is expanding its four-year-old Bangalore software-development center. By yearend 2005, some 1,500 engineers will be working there, up from 600 today.
Huawei's primary market, though, remains China. There, the company is benefiting from a rebound in infrastructure spending by state-owned operators such as China Telecommunications Corp., which on Dec. 8 awarded Huawei a contract to make key components for 2 million DSL lines. Demand in China for such high-speed Internet equipment is soaring: Over the past year, the number of DSL subscribers in China has tripled, to 7.5 million, according to researcher International Data Corp. Huawei is working on third-generation, or 3G, cellular equipment with German chipmaker Infineon, and is testing 3G infrastructure gear with China Mobile. And Germany's Siemens (SI ) announced in August it will partner with Huawei to manufacture phone equipment using a new 3G standard developed in China.
LINGERING QUESTIONS
While Siemens worked with a Huawei rival, state-owned Datang Mobile Communications Equipment Co., to develop the 3G technology, when it came time to manufacture the new equipment it chose Huawei instead. In launching a new product, "you better team up with good players," says Christoph Caselitz, president of Siemens Mobile Networks. "And Huawei is the strongest of them."
That doesn't mean there are only clear skies ahead for Huawei. SARS could always reappear and hurt both the Chinese economy and Huawei's business. While Huawei is enjoying a boost in sales abroad, some potential customers and partners say Huawei simply makes me-too products and does not back them up with adequate service. "We would not do business with Huawei," says Robert M. Cagnazzi, CEO of networking-gear distributor Dimension Data North America. And there are continuing doubts about Huawei's connections to the army. "There's too much military influence," says one prominent U.S. venture capitalist who does many deals in China but steers clear of Huawei. Whatever new problems arise, however, Huawei has managed to put what was shaping up to be its annus horribilis behind it, and rivals worldwide would do well to take notice.
By Bruce Einhorn in Shenzhen and Peter Burrows in San Mateo, Calif.
Disney launches Web site promoting wireless
by Mike Dano
Dec. 15, 2003 1:34 PM EST
Walt Disney Internet Group, the Internet and wireless arm of the giant media company, announced it will launch Disneymobile.com, an Internet site devoted to promoting its wireless offerings in the United States.
RCR Wireless News first reported on Disney's plans in October.
The company said the site will provide consumers with information regarding Disney Mobile content offerings and purchases as well as product demonstrations. It will be linked directly to the Disney.com site, which attracted 14.4 million unique visitors in November.
Further, Samsung Electronics Co. Ltd.'s phones will be exclusively featured on the Disneymobile.comsite.
"We've seen significant growth in both consumer awareness and usage of our mobile content over the past year, primarily driven by carriers' marketing efforts. We now believe the U.S. market has matured to a point that allows us to begin marketing directly to our customers," said Larry Shapiro, executive vice president of business development and operations for WDIG. "We know that many wireless subscribers turn to the Internet for information on specific content. Through Disney.com, one of the most highly trafficked sites on the Internet, we can help introduce our customers to this new form of Disney entertainment."
Wi-Fi start-ups look to combo chips
By Michael Kanellos
CNET News.com
December 10, 2003, 5:06 PM PT
URL: http://zdnet.com.com/2100-1103-5119508.html
PALO ALTO, Calif.--For Wi-Fi start-ups, the road to success might be paved with a combination chip.
Sychip and other Wi-Fi semiconductor manufacturers are trying to woo customers by integrating radio functions into a single chip or package, company executives said at the Micro Ventures conference taking place here this week.
While many venture capitalists and analysts have largely soured on the idea of putting money into emerging Wi-Fi companies, executives of start-ups say the opportunities aren't gone yet.
Plano, Texas-based Sychip, for instance, is producing samples of a product that combines a Wi-Fi module with Bluetooth, the short-range wireless networking technology.
Early next year, the company will show off a Secure Digital (SD) card that contains a Wi-Fi module and flash-memory chips. Sychip already produces a Wi-Fi card for SD slots, but if consumers want to take pictures, they have to swap in a memory card. Put another way, the Wi-Fi memory card does the same thing as two traditional cards.
"People want to make these (handhelds) smaller and smaller," Sychip CEO George Barber said.
Waterloo, Ontario's Sirific Wireless, meanwhile, has begun to produce samples of a chip that contains 2.5G functionality and Wi-Fi. The company said chips that combine different cell phone and wireless standards are in the works.
"There will be one radio that can be multilingual across the bands," Sirific CEO Michael Hogan said.
The push toward integration, which is also occurring within development groups at established silicon manufacturers such as Intel and Broadcom, is seen as a way to cut costs and device size. One chip simply costs less and takes up less space.
The growing multiplicity of wireless frequencies is prompting carriers to look harder at multifunction phones and multiband services. AT&T is already offering Wi-Fi and cellular packages. A large Chinese telecom carrier has issued a proposal for 500,000 phones that can do General Packet Radio Service (GPRS), Global System for Mobile Communications (GSM) and Wi-Fi, Hogan said.
Investors, though, remain somewhat skeptical about the ultimate success of semiconductor start-ups these days. Getting a fabless semiconductor maker--a chipmaker without a factory--off the ground costs about $40 million to $50 million, said Ken Lawler, general partner at Battery Ventures. The ultimate return lately, however, has been lower. Between January and October, 63 semiconductor companies were acquired. The purchase price on 75 percent of the deals was never announced, and Lawler estimated that the companies sold for between $5 million and $20 million.
"The fabless semiconductor market for start-ups is broken. If you are putting in $40 million to get out $20 million, that model is broken," he said.
"Gee, let's go into a low-cost, low-margin business and try to take on established players" Bill Frezza, general partner in Adams Capital Management, said characterizing the business plan of some wireless start-ups.
Although the market continues to be dominated by the larger Wi-Fi chipmakers such as Broadcom, some of these smaller companies are getting contracts. Dell, for instance, included a Sychip-based module in its first Wi-Fi handheld, while Sony uses a similar product in one of its Clie handhelds.
The Universal Communicator, a prototype communications device that was shown off at the Intel Developer Forum, also contained a Sychip-designed Wi-Fi unit. Intel is an investor in the company.