When's the party?

Rand

This Broadcom deal validates 3G/WCDMA. Obviously they are a major player. Convergence was my first thought. The race for the Wireless Holy Grail.

Too bad we don't license at the 'chip' level.

Too bad BRCM is another tech poacher.

Rand

June 16, 2004 04:00 AM US Eastern Timezone

Telephia Report: Entertainment Applications Likely to Help Drive European Mobile Device Replacement; Almost Half of Teen Subscribers Want Camera and MP3 on Next Device

SAN FRANCISCO--(BUSINESS WIRE)--June 16, 2004--Camera phones are likely to continue to drive upgrades in the European mobile device market in the next year, according to a new study by Telephia, the leading provider of marketing and service quality intelligence to the global mobile industry. There also appears to be substantial customer demand for several additional emerging entertainment applications, including music/MP3, the capability to view/download video, and integrated TV.


The Telephia European Device Report, based on a survey of 27,000 mobile device users in six major Western European countries, reveals that currently 11 percent of European subscribers regularly use the camera feature on their phone, with another 27 percent interested in having it on their next device. Teenage subscribers (ages 15-17) lead the marketplace in camera adoption and interest, with 16 percent using camera and 47 percent desiring it on their next phone.

Teen subscribers also exhibit considerable interest in several up-and-coming mobile entertainment applications. Almost half of teen users want the music/MP3 feature on their next phone (45 percent). That is more than double the percentage of all Europeans (19 percent). Teen subscribers were also enthusiastic about video viewing/downloading (3 percent use; 28 percent desire) and integrated TV (1 percent use; 27 percent desire).

"The success of camera phones in Europe has generated desire for more sophisticated entertainment applications and produced an important inflection point, at which entertainment has joined messaging as a key utility of mobile devices," said Mick Mullagh, president and chief executive officer of Telephia. "The challenge for device manufacturers is to extend demand beyond the current youth base and build awareness in new segments and geographies."

Telephia observed sizeable differences in demand across the six countries surveyed. Spain had the greatest percentage of subscribers who don't currently use camera but desire it on their next phone (34 percent). Spain also exhibited the most untapped interest in music/MP3 (27 percent). Italy had the highest level of interest in integrated TV (17 percent).


European Mobile Device Application Usage and Interest

Mobile Application Currently use regularly Do not use regularly but
desire on next phone
------------------- ------------------------ -------------------------
Camera 11% 27%
------------------- ------------------------ -------------------------
Music/MP3 4% 19%
------------------- ------------------------ -------------------------
E-mail 8% 18%
------------------- ------------------------ -------------------------
MMS 9% 15%
------------------- ------------------------ -------------------------
Integrated TV 0% 11%
------------------- ------------------------ -------------------------
Video viewing 0% 8%
------------------- ------------------------ -------------------------
SMS 51% 8%
------------------- ------------------------ -------------------------

Note: Results are based on surveys performed in France, Germany,
Italy, Spain, Sweden and the U.K.


The Telephia European Device Report focuses on consumer attitudes and behavior surrounding mobile devices and services. Produced twice annually, the report offers top-level country-by-country comparisons as well as analysis by manufacturer, segment, device type and operator. Telephia offers a Pan-European report as well as separate reports for France, Germany, Italy, Spain, Sweden and the U.K.

About Telephia

Telephia is the leading source of performance information and insight for the global mobile and wireless industry. Telephia's portfolio of marketing and service quality information products helps clients make better business decisions. Based in San Francisco, Telephia is a privately held company. For further information, visit www.telephia.com or call 415-395-0500.

Contacts

UPDATE 1-Broadcom to buy Zyray for about $96 mln in stock
Wed Jun 16, 2004 09:57 AM ET

(Adds details)
NEW YORK, June 16 (Reuters) - Media and communications chip maker Broadcom Corp. (BRCM.O: Quote, Profile, Research) said on Wednesday that it would buy Zyray Wireless Inc., which makes chips for mobile phones, for about $96 million worth of stock, or 2.23 million shares.

Irvine, California-based Broadcom also said it would cancel convertible notes of privately held Zyray which it previously bought for $3 million.

The deal is expected to close in the third quarter and Broadcom said it would take a charge of an undetermined amount at that time.

Zyray is a San Diego company that makes chips that enable new telecommunications technology, known as 3G, to be added to handsets and data terminals based on current technology. The companies said the chips will work with Broadcom's existing chips for handsets.

Broadcom shares rose 18 cents, or 0.4 percent, to $43.04 in morning Nasdaq trading.

Japan Prepares to Export 3G
Wireless Watch Japan's Daniel Scuka takes a look at the Japanese mobile phone market. Japan's phone vendors are targeting the European and U.S. wireless markets with sophisticated next-generation devices.

2004 is shaping up to be big year for Japan's mobile device market, with Japan's vendors looking to export their 3G expertise to foreign markets.

After all, Japan has only 82 million mobile subscribers and with net monthly additions down sharply, it appears that the domestic market is saturated. While Japan's electronic giants were not as successful in the handset market during 1990s as they had hoped, these companies are preparing to use their 3G experience in Japan to break new ground in global markets.

Japan's cell phone vendors have prepared a plethora of new features on their 3G and ultra-souped-up 2G phones that they hope will help them win new customers.

These new features include 64-voice ring-tones, CD-quality music download services (limited to 30-second clips due to DRM), analog TV, FM radio, "FeliCa" contactless e-wallet payment functionality, and videoconferencing. If a colleague rings you on your FOMA videophone at one of those inconvenient, personal moments (say, while playing slots at a pachinko parlor during work hours), you can select a personal avatar to be displayed on the caller's phone to hide your real face (and location) -- and control its facial expressions using the keypad.

In the meantime, Japan's carriers and content providers are delighted with the new features as they translate into higher revenues. Since KDDI's launch of flat-rate data pricing last fall, content ARPU at the carrier generated by "EZ Flat" users is up to 1,470 yen compared to 610 yen for non-flat-rate users. EZ Flat is only available for KDDI's subscribers with CDMA2000 1xEV-DO phones.

Over at Label Mobile, a content provider joint-venture set up by the 5 major Japanese music labels to serve CD music clips to 3G phones, president Masakatsu Ueda is pretty happy. Branded as "Chaku Uta," the service has instantly become the most significant mobile content category in Japan. Most tracks sell for 100 Yen but prices vary from 50-200 Yen; the company expects to serve 150 million downloads in 2004. But you need a 3G keitai to play.


--------------------------------------------------------------------------------

Panasonic forecasts GSM market demand oat 325 to 335 million units over the next three years, or about 130 million handsets from 2004 through 2006.


--------------------------------------------------------------------------------

In February 2004, Panasonic Mobile Communications announced an aggressive and well-thought-out strategy aimed at boosting phone sales in overseas GSM markets. The company forecasts GSM market demand at 325 to 335 million units over the next three years, or about 130 million handsets from 2004 through 2006.

However, Panasonic expects demand from China and Asia to grow from about 134 million last year to about 160 million with plans to capture an 8-percent global market share.

In January, Fujitsu was also reported to be re-entering the European market with both 2G and 3G phones by 2005. The new phones are reported to support both GRPS and WCDMA. Fujitsu's last foreign foray into the U.S. ended in 1997.

Perhaps the most interesting mobile terminal success story has been that of Sharp, a boutique electronics maker based near Osaka. The long-time 3rd-tier supplier was permanently locked out of the DoCoMo ecosystem and has only supported a few models to Vodafone and KDDI.

With the stellar success of the first camera phone in 2001 at J-Phone, though, Sharp was recruited by DoCoMo to supply a clone to its hit phone, the Big D. Sharp then parlayed that opportunity into top-tier supplier status with DoCoMo. Sharp has since signed on with Vodafone Group to supply the highly successful GX-110/20/30-series of GSM handsets as well as newer 3G models. Thanks to its success with DoCoMo and Vodafone, Sharp now has its sights firmly set on expanding into overseas markets.

Japan's wireless optimism isn't limited to exporting 3G products. Japanese vendors are also eyeing strong potential sales for older, "cellular-lite" PHS (Personal Handyphone System) technology in emerging markets in China and South-East Asia.

Once counted out of the global handset market, Japan's cell phone makers are poised for a big comeback in the U.S. and to make significant in-roads in both Europe and in developing markets throughout Asia.

Daniel Scuka is chief editor at the WWJ media project in Tokyo.

Thanks Data.EOM

Rand

OVSF-Orthogonal Variable Spreading Factor...4G? NTT Docomo claims speeds as high as 300mbps.

Are we collaborating with NTT?

What is our patent position in VSF-CDMA and VSF-OFCDM?

TIA

Dish,

Every corp has a 'cost of capital'. Meaning if we borrow, spend cash, sell or give equity or sell an asset it has an impact on future economic value.

Think of pitching a stone in a lake. The initial splash is one event, but the ripples go on indefinitely.

Each capital decision must not be made in a vaccuum. There are many ripples. They all must be measured and considered. It is unfortunate that with the pressure of quarterly earnings targets, public companies are forced to make short term decisions trying to create long term shareholder value.

IDCC appeared to opt for long term value creation with the purchase of Tantivy assets, however with the failure of Cometa (Intel, IBM & ATT) and the Lucent suit one may question whether that was a wise deployment. Time will tell.

My thoughts are this:

Economic Value has been created for us shareholders by engineering and developing IPR. If we spend X million in cash on executive compensation and perks we lose the opportunity to attract and develop IPR. Perhaps we could hire 10 more engineers or purchase additional engineering assets/ IPR in a difficult equity market.

With our recuring revenue stream ramping, zero debt, the interest rate environment now and in the future, wouldn't it be wise to consider long term debt as the lowest cost of capital? If it cost us 4% net to borrow for 5 years, could we not outperform that cost long term through licensing?

Just some thoughts.

Rand

RIM, PalmSource prepare to connect

By Richard Shim
Staff Writer, CNET News.com
http://news.com.com/2100-1041-5215075.html

Story last modified May 18, 2004, 12:18 PM PDT



Research In Motion and PalmSource presented details Tuesday of an alliance aimed at making RIM's BlackBerry wireless communications service available to licensees of PalmSource's operating system.
The deal between the two handheld specialists was struck in May 2003, but the companies are just now releasing details of how they'll work together.

Through RIM's licensing program, BlackBerry Connect, device makers using the Palm OS will be able to use software that allows their devices to access the BlackBerry service wirelessly. An e-mail client for the service, Mail for BlackBerry, will be available through PalmSource and will become a part of its regular software licensing package, according to Albert Chu, vice president of business development at PalmSource. Both pieces of software will be commercially available in the second half of the year.

"We've been hearing a lot of demand for this kind of service from enterprise customers and carriers," Chu said.

PalmSource also has a licensing agreement with Good Technology, a RIM rival and recently signed licensee.

The deal gives PalmSource an attractive lure for new as well as current licensees, and it may mean that more manufacturers will be using RIM's service and software. PalmSource's handheld operating system is used in 33 million devices, making it the market leader.

The market for handhelds, however, has been shrinking during the last couple of years. Research company IDC estimates that shipments of handhelds in the first quarter fell 11.7 percent, compared with the same period a year ago, to 2.2 million units.

The first quarter is traditionally a slow period for the market, but this year it seemed especially low because of an exceptionally strong fourth quarter. Shipments in the first quarter dropped 33.1 percent compared with the fourth quarter, according to IDC.

At a RIM conference in Chicago on Tuesday, PalmSource Chief Executive David Nagel demonstrated the BlackBerry Connect and Mail for BlackBerry software on a Samsung SGH i500 phone. Samsung earlier this year had announced its intention to bring the BlackBerry service to its phones.

In related news Tuesday, RIM announced plans to make the next release of its enterprise software, version 4.0, available later this year.

The company says the new software will feature improvements in the areas of installation, wireless security and remote manageability. The new version will also simplify software development for the BlackBerry platform, the company says.

Thursday 13 May 2004

SAP CRM connects to Blackberry



German business software supplier SAP has agreed to combine its CRM product with Blackberry wireless handheld devices manufactured by Research in Motion (RIM).

The service, available later this year, will allow salespeople in various industries, including consumer products and pharmaceuticals, to manage their customer accounts more easily and efficiently, SAP said at its Sapphire international customer conference in New Orleans.

The application, which requires no manual synchronisation, will allow sales representatives in the field to update and access information they need for their sales calls anywhere and at anytime. For example, they could immediately check the status of an open order when consulting with a customer.

Bill McDermott, chief executive officer and president of SAP has been using the service internally for some time to keep track of sales in near-real-time and referred to it as a "powerful tool".

A customer survey conducted by SAP before Sapphire revealed that one of their biggest demands were mobile applications. "This is an example of how we aim to deliver solutions that meet these demands," he said.

The Blackberry application complements SAP Mobile Sales, a component of the mySAP CRM application, which can run on both notebook computers and handhelds.

Under their agreement, SAP and RIM will contribute engineering, marketing and sales resources as well as consulting capabilities to the partnership.

John Blau writes for IDG News Service

Back to a value stock? EOM

Rand

AIM took a nibble as well. They ain't no slouch.EOM

Rand

ACOC Shell/Merger news:

Updated: 08:47 AM EDT
RoomlinX Positions for Expansion, Appointing Wireless Industry Veterans to Executive Management Team

Aaron Dobrinsky to Join as Chief Executive Officer;

Frank Elenio as Chief Financial Officer

HACKENSACK, N.J., April 27 /PRNewswire-FirstCall/ -- In anticipation of its proposed merger with RoomlinX, Inc., a leading provider of wireless high-speed Internet network solutions to the hospitality industry, Arc Communications, Inc. (OTC: ACOC) today announced it has appointed wireless industry veterans Aaron Dobrinsky and Frank Elenio to serve as CEO and CFO, respectively. The two have also been appointed to the Board of Directors and will serve in the same capacities at the merged company. Upon completion of the merger, expected to close with shareholder approval in coming weeks, the company will be moving its corporate headquarters to Hackensack, New Jersey.

Dobrinsky, founder, Chairman and former CEO of wireless data provider GoAmerica Communications, (Nasdaq: GOAM) is widely respected for his role as an innovator and business leader in the wireless and telecom industries. He is credited for having introduced wireless solutions as productivity tools for corporations. Elenio, who has more than 18 years of financial and M&A experience, served as CFO of GoAmerica from 1999 to 2003. The two have significant experience in all areas of business including mergers, acquisitions and strategic partnerships. While at GoAmerica, the two executives helped raise in excess of $200 million in equity, while at the same time expanding the company's distribution network. Together, they bring a combined industry and business acumen that will be a significant competitive advantage for RoomlinX.

"I am thrilled to join RoomlinX and couldn't be happier to team again with Frank as we seek to expand the possibilities in this category," said Aaron Dobrinsky, appointed CEO of RoomlinX. "The RoomlinX business model provides a solid foundation for opportunities that will only increase with the convergence of broadband, media and telecom. I am eager to work with the incredibly talented people at RoomlinX to leverage advances in these and other areas for the benefit of our customers. Immediately we will begin looking to expand the markets that Roomlinx currently serves while introducing some value-added services such as IP telephony (known as VOIP) to our line of quality products. Roomlinx is in a great position to take advantage of the technology available and I look forward converting those opportunities into exciting new revenue streams for the company."

"The Roomlinx business model is different than many of its competitors', since RoomlinX installs high-quality networks and then allows its customers to gain revenue through their usage," said Frank Elenio, appointed CFO for RoomlinX. "The need for wireless access is unquestionable. RoomlinX customers praise the company and its products, which translates into good business. I look forward to working with Aaron again and in helping make the RoomlinX vision a reality."

"Aaron is not only respected for his talent and hands-on management style but for his ability to forge important business relationships with a keen focus on strategy and execution," said Peter Bordes, chairman of Arc Communications and appointed Chairman of RoomlinX. "We are pleased by the potential Aaron and Frank feel is inherent in our model and believe that RoomlinX will become the preeminent player in this arena with these two at our helm."

"It is a testament to our company, the quality of our products and the loyalty of our customers that these two wireless industry veterans have agreed to lead our efforts," said Bob Lunde, current CEO of Roomlinx. "I look forward to supporting them as I shift my focus to partnerships in a new role spearheading strategic alliance initiatives for the company."

Dobrinsky founded GoAmerica in 1996 when, as a frequent business traveler, he realized there was no way to remain fully productive while on the road. Recognizing the potential demand for a form of mobile data communications, he was determined to find a solution. His search led him to discover new technologies in the emerging world of wireless data.

Dobrinsky has held management positions in several companies, frequently earning distinction for leading his groups to record profitability. He has been an advisor to several companies and is currently the Chairman of the Board for GoAmerica, Inc. (Nasdaq: GOAM). Dobrinsky is an experienced public speaker, has received recognition for his entrepreneurial acumen and was named as a finalist for Ernst & Young's Entrepreneur of the Year 1999 for his role as founder of GoAmerica.

Frank Elenio joined GoAmerica in January 1999 as its Chief Financial Officer, Treasurer and Secretary. Elenio began his career with Ernst & Young LLP (then Ernst & Whinney). Mr. Elenio left Ernst & Young in 1991 to join KTI, Inc., a waste recycling company, as corporate controller and ultimately becoming vice president of finance. After successfully transitioning KTI's financial operations to Maine, Elenio joined Bogen Communications, Inc. as controller in 1997. While at Bogen, Elenio helped move Bogen from the American Stock Exchange to the NASDAQ National Market. Additionally, Elenio helped procure a $20 million acquisition line of credit. Elenio is a Certified Public Accountant in New Jersey.

About RoomLinX, Inc.

RoomlinX is a pioneer in Broadband High Speed Wireless Internet connectivity, specializing in providing the most advanced 802.11b WI-FI Wireless and Wired networking solutions for High Speed Internet access to Hotel Guests, Convention Center Exhibitors, Corporate Apartments, and Special Event participants.

About Arc Communications, Inc.

The information contained in this press release, including any "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 contained herein, should be reviewed in conjunction with the Company's Annual Report on Form 10-KSB and other publicly available information regarding the Company, copies of which are available from the Company upon request. Such publicly available information sets forth many risks and uncertainties related to the Company's business and such statements, including risks and uncertainties related to that are unpredictable and outside of the influence and/or control of the Company.

For More Information Contact:

Ilya Welfeld

RoomlinX

201.696.9076

iwelfeld@roomlinx.com

ACOC Reverse Merger news update:

Updated: 08:47 AM EDT
RoomlinX Positions for Expansion, Appointing Wireless Industry Veterans to Executive Management Team

Aaron Dobrinsky to Join as Chief Executive Officer;

Frank Elenio as Chief Financial Officer

HACKENSACK, N.J., April 27 /PRNewswire-FirstCall/ -- In anticipation of its proposed merger with RoomlinX, Inc., a leading provider of wireless high-speed Internet network solutions to the hospitality industry, Arc Communications, Inc. (OTC: ACOC) today announced it has appointed wireless industry veterans Aaron Dobrinsky and Frank Elenio to serve as CEO and CFO, respectively. The two have also been appointed to the Board of Directors and will serve in the same capacities at the merged company. Upon completion of the merger, expected to close with shareholder approval in coming weeks, the company will be moving its corporate headquarters to Hackensack, New Jersey.

Dobrinsky, founder, Chairman and former CEO of wireless data provider GoAmerica Communications, (Nasdaq: GOAM) is widely respected for his role as an innovator and business leader in the wireless and telecom industries. He is credited for having introduced wireless solutions as productivity tools for corporations. Elenio, who has more than 18 years of financial and M&A experience, served as CFO of GoAmerica from 1999 to 2003. The two have significant experience in all areas of business including mergers, acquisitions and strategic partnerships. While at GoAmerica, the two executives helped raise in excess of $200 million in equity, while at the same time expanding the company's distribution network. Together, they bring a combined industry and business acumen that will be a significant competitive advantage for RoomlinX.

"I am thrilled to join RoomlinX and couldn't be happier to team again with Frank as we seek to expand the possibilities in this category," said Aaron Dobrinsky, appointed CEO of RoomlinX. "The RoomlinX business model provides a solid foundation for opportunities that will only increase with the convergence of broadband, media and telecom. I am eager to work with the incredibly talented people at RoomlinX to leverage advances in these and other areas for the benefit of our customers. Immediately we will begin looking to expand the markets that Roomlinx currently serves while introducing some value-added services such as IP telephony (known as VOIP) to our line of quality products. Roomlinx is in a great position to take advantage of the technology available and I look forward converting those opportunities into exciting new revenue streams for the company."

"The Roomlinx business model is different than many of its competitors', since RoomlinX installs high-quality networks and then allows its customers to gain revenue through their usage," said Frank Elenio, appointed CFO for RoomlinX. "The need for wireless access is unquestionable. RoomlinX customers praise the company and its products, which translates into good business. I look forward to working with Aaron again and in helping make the RoomlinX vision a reality."

"Aaron is not only respected for his talent and hands-on management style but for his ability to forge important business relationships with a keen focus on strategy and execution," said Peter Bordes, chairman of Arc Communications and appointed Chairman of RoomlinX. "We are pleased by the potential Aaron and Frank feel is inherent in our model and believe that RoomlinX will become the preeminent player in this arena with these two at our helm."

"It is a testament to our company, the quality of our products and the loyalty of our customers that these two wireless industry veterans have agreed to lead our efforts," said Bob Lunde, current CEO of Roomlinx. "I look forward to supporting them as I shift my focus to partnerships in a new role spearheading strategic alliance initiatives for the company."

Dobrinsky founded GoAmerica in 1996 when, as a frequent business traveler, he realized there was no way to remain fully productive while on the road. Recognizing the potential demand for a form of mobile data communications, he was determined to find a solution. His search led him to discover new technologies in the emerging world of wireless data.

Dobrinsky has held management positions in several companies, frequently earning distinction for leading his groups to record profitability. He has been an advisor to several companies and is currently the Chairman of the Board for GoAmerica, Inc. (Nasdaq: GOAM). Dobrinsky is an experienced public speaker, has received recognition for his entrepreneurial acumen and was named as a finalist for Ernst & Young's Entrepreneur of the Year 1999 for his role as founder of GoAmerica.

Frank Elenio joined GoAmerica in January 1999 as its Chief Financial Officer, Treasurer and Secretary. Elenio began his career with Ernst & Young LLP (then Ernst & Whinney). Mr. Elenio left Ernst & Young in 1991 to join KTI, Inc., a waste recycling company, as corporate controller and ultimately becoming vice president of finance. After successfully transitioning KTI's financial operations to Maine, Elenio joined Bogen Communications, Inc. as controller in 1997. While at Bogen, Elenio helped move Bogen from the American Stock Exchange to the NASDAQ National Market. Additionally, Elenio helped procure a $20 million acquisition line of credit. Elenio is a Certified Public Accountant in New Jersey.

About RoomLinX, Inc.

RoomlinX is a pioneer in Broadband High Speed Wireless Internet connectivity, specializing in providing the most advanced 802.11b WI-FI Wireless and Wired networking solutions for High Speed Internet access to Hotel Guests, Convention Center Exhibitors, Corporate Apartments, and Special Event participants.

About Arc Communications, Inc.

The information contained in this press release, including any "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 contained herein, should be reviewed in conjunction with the Company's Annual Report on Form 10-KSB and other publicly available information regarding the Company, copies of which are available from the Company upon request. Such publicly available information sets forth many risks and uncertainties related to the Company's business and such statements, including risks and uncertainties related to that are unpredictable and outside of the influence and/or control of the Company.

For More Information Contact:

Ilya Welfeld

RoomlinX

201.696.9076

iwelfeld@roomlinx.com

Shell taking on Broadband wireless company: ACOC
Closing in May?

http://www.pinksheets.com/quote/print_filings.jsp?url=%2Fredirect.asp%3Ffilename%3D0001144204%252D04...

Sorry if posted:

April 23, 2004

Nextel Considering More Wireless Broadband Technologies



By David Haskin
Nextel moved its wireless broadband trial to the next stage this week, but it has been notably mum about its future widespread roll-out plans. One reason for its reticence is that it is still seriously examining other technologies.
The company is using pre-standard 802.20 equipment from Flarion Technologies in its wireless broadband trials in the Research Triangle area of North Carolina. However, Nextel also is evaluating wireless broadband infrastructure products from at least one other vendor, IPWireless, three sources have confirmed to Mobile Pipeline.

At least so far, no public trials of IPWireless' technologies have been used. While Flarion uses a pre-standard version of 802.20 technology that it calls Flash OFDM, IPWireless uses a different technology called UMTS TDD.

While he offered no specifics, Nextel COO Tom Kelly acknowledged this week that the company is looking at other technologies.

"Nextel continues to evaluate other broadband technologies, particularly as they apply to the 2.5GHZ band," Kelly said during the company's quarterly conference call with analysts and journalists this week. "I want to be perfectly clear when I say that no technology decisions have been made to build a next-generation network."

IPWireless' equipment operates in the 1.9 to 2.7GHZ range and also in the 3.4GHz part of the spectrum. While it hasn't received much attention in the U.S., IPWireless equipment is in several trials overseas.

The bottom line is that Nextel is moving slowly and deliberately toward a wide roll out of wireless broadband, a spokesperson for the company said.

"If you look at our pattern of trials, we're very diligent," the spokesperson said Thursday. "We take our time."

PrairieComm Furthers Its Investment in 3G with Expansion of Bangalore Development Center




ROLLING MEADOWS, Ill. and BANGALORE, India, Feb. 3 /PRNewswire/ --
PrairieComm, Inc., a leading developer and supplier of 3G baseband processors
and software, today announced the expansion of its development center in
Bangalore, India. The expansion is part of PrairieComm's dedication to
continued financial investment and resource allocation for 3G product
development. The expansion of its Bangalore Development Center will allow
PrairieComm to double its workforce there. Since the creation of the
Bangalore Development Center in 2002, it has been a crucial element in
PrairieComm's 3G product design and success.
(Logo: http://www.newscom.com/cgi-bin/prnh/20030211/PRAIRIELOGO )
"The Bangalore team works very effectively with our US design centers and
has already made significant contributions to our product development," said
Mark Bapst, CTO and Vice President, PrairieComm, Inc. "This allows us to have
around-the-clock development and verification which is a significant advantage
as we execute on our 3G roadmap."
"Our team in India has played a key role in PrairieComm's development of
2G and 3G solutions," said Shekar R, General Manager, PrairieComm, India. "We
are expanding the team and expect it to help us realize our 3G vision and
continue to strengthen PrairieComm's 3G product differentiation."
The Bangalore Development Center, which is operated by PrairieComm
Technologies India, remains on a vigorous timeline for bringing in talented
individuals over the next several months to address its aggressive 3G software
development needs. PrairieComm Technologies India is a wholly owned
subsidiary of Rolling Meadows, IL-based PrairieComm, Inc.

About PrairieComm
PrairieComm, Inc. ( http://www.prairiecomm.com ), based in Rolling Meadows, Ill.,
develops and markets chipsets, embedded software and licensed intellectual
property for TDMA, GSM, CDMA, EDGE, and UMTS (WCDMA). PrairieComm's
innovative products are at the heart of wireless personal communications
providing chipsets for mobile wireless products from the world's leading
consumer electronics manufacturers.

All rights reserved. All other trademarks are properties of their
respective companies.



SOURCE PrairieComm, Inc.
Web Site: http://www.prairiecomm.com
Photo Notes: NewsCom:
http://www.newscom.com/cgi-bin/prnh/20030211/PRAIRIELOGO AP
Archive: http://photoarchive.ap.org PRN Photo Desk,
+1-888-776-6555 or
+1-212-782-2840

.16e brings portability, which would be disruptive if ubiquitous. Standard needs to be set. Look to '06 the earliest impact. As I mentioned in the past IDCC needs to focus here. Also mentioned AIRN.
Operators are starting to sniff cash here. The economy is loosening up their purse strings a tad. Perfect storm.

Rand

Sears Tower to go wireless



CHICAGO, Jan. 20 (UPI) -- Chicago's 110-story Sears Tower will be one of the first commercial buildings in the United States to offer Wi-Fi computer access on all floors.

The 1,450-foot skyscraper will have an in-building wireless system provided by InnerWireless Inc. that will support celluar phones, paging, 2-way radio applications, high-speed wireless LAN (Local Area Network) and first-responder emergency service.

Wi-Fi will work on all 110 floors, allowing tenants to forgo a traditional computer network and set up wireless networks.

The landmark boosted security after the Sept. 11, 2001 attacks when it was considered a possible terrorist target.

"You don't have to be very high in a skyscraper to experience problems with wireless reception," said Stephen Budorick, senior vice president of the central region for Trizec Properties, which manages the tower.

"This solution would allow people in Sears Tower to make a call from their office, get on the elevator to go downstairs and walk out the front door of the building, without ever losing the call."

Research link:
http://www.canalys.com/pr/r2004011.pdf

Sorry if posted already.

Rand

OT btw have you checked out the little SDR company in Melbourne?

Rand

Microsoft retail project taps into RFID

By Matt Hines
Staff Writer, CNET News.com
http://news.com.com/2100-7345-5139176.html

Story last modified January 12, 2004, 7:51 AM PST

Microsoft said Monday that it established a new project aimed at providing next-generation technology to retailers, including emerging wireless applications such as radio frequency identification.
The announcement, made as part of the ongoing National Retail Federation (NRF) convention in New York, targets development of applications for nearly every aspect of the retail universe, from shopping to inventory management. Dubbed as the Smarter Retailing Initiative, the effort promises to deliver tools that allow retailers to interact with customers, improve operations management and incorporate emerging wireless technology. Microsoft said that software built under the effort would be based on its .Net Web services framework and would have an interface to existing products.

News.context

What's new:
Microsoft will create tools that allow retailers to interact with customers, improve operations management and incorporate emerging wireless technology. The software will be based on the company's .Net Web services framework and would have an interface to existing products.
Bottom line:
Retailers are expected to use radio frequency identification, or RFID, for everything from tracking inventory to communicating information on special deals to consumers via wireless devices. Microsoft's plans should boost these efforts.




For more info:
Track the players

The Redmond, Wash.-based software maker reported that it has already signed on a number of partners to contribute to the project, including consultants such as Accenture and Cap Gemini Ernst & Young, and technology vendors like Dell Computer, Hewlett-Packard and Intel. Microsoft also has recruited several retail chains to participate in the program, including 7-Eleven, Circuit City Stores and RadioShack.

Perhaps the most intriguing element of the new effort is a Microsoft partnership with Accenture, which has already produced several RFID-based technologies designed for use by retailers. RFID chips carry descriptive information, most frequently regarding products to which they're attached, that can be read by a number of different devices, including handheld computers or sensors located in a warehouse. Retailers are expected to use RFID for everything from tracking inventory to communicating information on special deals to consumers via wireless devices.




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Microsoft also announced that it has joined the Metro Group Future Store Initiative. The effort to promote innovation in retail technology and to create industry standards was founded by Metro Group, a German consumer packaged goods company, along with IBM, Intel, SAP and other technology providers.

Although the company offered few concrete examples of the sort of technologies it plans to develop for retailers, it pointed to use of its Windows XP Embedded operating system software as a prime area for development. Microsoft said that some of its retail partners are already using the software to create shopping tools that use wireless devices such as cell phones and personal digital assistants (PDAs) to deliver information to customers.

Other applications being developed under the program include software for use with point-of-sale terminals and analytic tools based on Microsoft's SQL Server designed specifically for the retail sector. The software maker reported that RadioShack has already adopted 8,000 point-of-sale systems based on Windows XP throughout its stores and that it built a mobile store management system with another partner, Wipro Technologies.

"Microsoft's Smarter Retailing Initiative flows from our belief that there are many opportunities for innovation in the retail industry today, but they primarily lie on the edges, where retailers interact with consumers and manage their supply chains," Brian Scott, general manager for the Microsoft's retail and hospitality business unit, said in a statement.

Industry analysts praised Microsoft's efforts to become more involved with both the retail industry and RFID, but pointed out that they remain largely unproven. Christopher Boone, an analyst at IDC, said the software maker is wise to partner with companies that have already worked for years on developing RFID, such as Accenture, and to get involved with industry efforts like the Future Store Initiative.

"Where exactly Microsoft is going to fit in the RFID puzzle isn't certain, as they're not a middleware vendor, but (Microsoft) has a pretty good vision of how to work with partners to become a piece of the architecture supporting everything," Boone said.

He noted that Microsoft has long been perceived as being "too broad" in its efforts aimed at the retail sector, but said its recent work around point-of-sale terminals and Windows XP Embedded is changing that perception. Boone said he expects Microsoft to increasingly push to increase its influence with retailers through Windows products that support in-store applications and supply chain management technology.

Microsoft highlighted the retail initiative as part of a $6 billion effort aimed at sharpening its focus on particular vertical industries.

Other software makers revealed new retail-focused efforts at the NRF conference, including Microsoft rival Sun Microsystems, which detailed electronic product code tracking software for supply chain management built in conjunction with one of its developer partners, Aldata.

You are absolutely correct. The depreciation of the dollar is financiang their royalty obligation PLUS there is no reason to not expect a serious discount before during or after arb. Until NOK whiffs a sense of risk they have NO motivation to settle. What is there cost of waiting?

Rand

Given the guidance of the big players, our analysts may have reason to raise their targets. Something big is brewing here. Lots of play in the call options.

Rand

Seems like we have no macro element to our share price. Nok, Ericsson and Alcatel up on NOK's handset and network outlook. We are up but not 10%.
Puzzling but likely to change over time.

Rand

Mchere:
I share your enthusiasm for the Tantivy acquisition, however, it is my belief the real money in smart antenna tech will be found at the silicon level.

http://www.motia.com/

Rand

How about the interop of .11 and TDD? If we can solve the data compression....
Rand

2004-01-06 07:32 ET - News Release

SAN FRANCISCO -- (Business Wire) -- Jan. 6, 2004



Brings Key Leadership to Deliver Macromedia
Flash Solutions to Fast-Growing Mobile Market

Macromedia (Nasdaq:MACR) today announced the appointment of Juha
Christensen as president of its mobile and devices business unit.
Christensen recently served as corporate vice president of the mobile
devices division at Microsoft Corporation, building Microsoft's
franchise in the mobile industry. Before joining Microsoft,
Christensen co-founded Symbian Ltd., a joint venture between Nokia,
Ericsson, Sony-Ericsson, Matsushita, Samsung, Siemens, and Psion,
whose cross-vendor operating system is emerging as an industry
standard. Previously Juha worked at Psion Plc., bringing out some of
the first PDAs in the industry.
"Juha Christensen brings entrepreneurial leadership, an amazing
track record with mobility, and clear vision to our growing mobile and
devices business," said Rob Burgess, chairman and CEO, Macromedia. "As
president of this important division, Juha will help Macromedia lead
the field in delivering innovative and practical solutions for this
fast-growing industry."
"While researching for a start-up this fall, I came across
Macromedia and was incredibly impressed with the people, the
technologies, and the strength of the authoring community. I joined
the company because Macromedia is uniquely positioned to deliver the
experience layer that will 'light up' next generation mobile devices
with exciting consumer services, applications, and content," said Juha
Christensen, president of mobile and devices, Macromedia. "I'm excited
about leading the development of a rich set of solutions that enable
mobile services to be created by a wide range of individuals and
companies. Our solutions will be aimed at anyone from the professional
content developer to the individual who, without programming skills,
wants to reach out and connect with people within their wireless
communities."
The market for new devices has been fueled for the past few years
by powerful hardware combined with new, consumer friendly software.
Macromedia(R) Flash(TM) players and content are already found in
devices including mobile phones, PDAs, televisions, toys, and other
consumer electronics devices. Popular new products using Macromedia
Flash include the NTT DoCoMo 505i, 505iS, and the soon to be launched
FOMA 900i series mobile phones, many Sony Clie PDAs, and the LeapFrog
Leapster educational toy. Macromedia Flash uniquely supports many
operating systems, embedded processors and data networks including
existing 2.5G and 3G wireless systems. The ubiquitous Flash Player is
increasingly playing a key role in exciting new products to support
rich, interactive content, improve embedded Internet browsers, and
power entire user interfaces.

About Juha Christensen

While at Microsoft, Christensen brought to market the Pocket PC,
Pocket PC Phone Edition, and Smartphone, in addition to Mobile
Information Server and Server ActiveSync. He was also responsible for
Microsoft's participation in several worldwide wireless standards
bodies and developed the strategy for company-wide mobility solutions
and scenarios. During his time at Symbian, Christensen wrote the
company's first business plan, which defined the company's overall
strategy, vision, and operational platform. He led the core team
responsible for bringing together joint venture partners, and was also
a board member and executive vice president in charge of product
management, marketing, sales, business development, evangelism, and
supplier relationships. Previously Christensen was vice president of
licensing at Psion.

About Macromedia

Experience matters. Macromedia is motivated by the belief that
great experiences build great businesses. Our software empowers
millions of business users, developers, and designers to create and
deliver effective, compelling, and memorable experiences -- on the
Internet, on fixed media, on wireless, and on digital devices.

Macromedia, the Macromedia logo, and Macromedia Flash are
trademarks or registered trademarks of Macromedia, Inc., which may be
registered in the United States and internationally. Other product or
service names mentioned herein are the trademarks of their respective
owners.
Contacts:

Macromedia
Suzy Ramirez, 415-252-4053
sramirez@macromedia.com

Lots of action in the January call options. 20's being most popular. Big move in the cards?
Rand

Things to watch in 2004:
direct sequence CDMA vs. OFDM
Grantsdale-.11n and WiMax .16
Generals: Atomics vs. Dynamics does IDCC fit?
Silicon controlled antennas
Software defined radio
UWB vs. Blue

Rand

Cell phones exposing more cheating spouses
(DPA)

29 December 2003



SINGAPORE - No longer does a suspicious wife in Singapore rely on lipstick on her husband’s collar or perfume to suspect an affair.


Nearly nine out of every 10 cases of extramarital affairs are exposed through cellular telephone habits, private investigators and lawyers told the newspaper Streats on Monday.

Clients cite suspicious SMS messages and mobile phone calls their spouses receive as reasons for wanting them investigated.

Vince Mok, who has handled 40 such cases this year, told of a client who noticed her husband would go to the balcony when he received certain calls.

“Late one night, while he was asleep, she checked the call register on his cell phone,” Mok was quoted as saying.

The wife hired him to follow her husband. “True enough, he was fooling behind her back”, he said.

Other firms said nearly all of their cases of infidelity involved tell-tale signs on cellular phones. Wives who cheat on their husband, roughly one in 10 cases, also rely on their portable phones, they said.

While SMS messages are admissible as evidence in a divorce suit, lawyers said they only prove a liaison exists, but do not prove adultery.

“Judges here are relatively cautious and often want collaborative evidence such as entries in a hotel register or testimony by a private investigator that the spouse had spent time alone with a partner in a room,” a lawyer said.

Must read: Posted on Mon, Dec. 29, 2003

The Powell Pulpit
FCC chairman, in `field trip' to valley, talks about VoIP, telecom
By Michael Bazeley
Mercury News

Michael Powell has his feet in two worlds.

As chairman of the Federal Communications Commission, he regulates a telecommunications industry that has virtually imploded in recent years. At the same time, he is shaping a regulatory framework for a new era of communications, one that includes Internet phone services, digital television, an explosion in broadband services and countless other innovations.

During a recent ``field trip'' to Silicon Valley, where he visited Intel and Apple and some smaller companies, Powell met with Mercury News reporters and editors. Here are excerpts of his remarks on various topics:

The `digital migration': It's really basically the simple thesis that for 100 years we've had one kind of communications system -- analog and narrow band -- and it's the greatest machine ever built by mankind. It's also extremely mature, and it's really, in my view, at the end of its innovation life.

But what we see is this quantum-leap potential to create a network, infrastructure and architecture that has almost undefinable innovation potential. . . . You begin to bring in non-traditional constituencies, everything from Microsoft to Intel to Apple to Sun, to a communications space long dominated by monopolies, who are very used to going home or playing golf at 4 o'clock, and really have never had to cope with the kind of software economics and the technology economics that have driven the computer world.

So I see two worlds that have been steadily drifting toward each other and we knew would crash into each other, and the crash has already occurred. And we're trying to see which falls in on which. I'm an avid believer that I want the Internet-computer-software model to fall in on the telephone model rather than the other way around.

The goal of FCC regulations:

The government, by its own embrace of monopoly in the 1900s, basically accepted the idea there is one route into your home and one company gets to own it. And that is really the sole premise of all telecom regulation.

And the one pipe is optimized for one application. And we built a brilliant engineering solution to carry voice phone calls. And we built a brilliant infrastructure for one-way video distribution, called coaxial cable. And we use the airwaves in a very lockstep way.

What's the future we'd like to see?

One, we don't want one pipe. We're doing everything we can to incent the free-radical opportunities for multiple routes to the home. So when you look at FCC proceedings, that's where there's so much energy going into WiFi, and ultra-wideband and powerline broadband and laser optics and free-space optics and other policies that encourage and incent the creation of alternate digital platforms.

It's why I want digital companies to become phone companies, and phone companies to become video companies. We want to get more platforms.

If you're Vonage, a young IP (Internet protocol) telephony company, you don't have a 30-person regulatory shop in Washington. But Verizon does. And AT&T has 40 lawyers in Washington dedicated to regulatory issues. . . .

So the minute you start telling a Vonage or an 8x8 (another Internet phone company), or a new, innovator-entrepreneur, ``Oh, by the way, you have to have a regulatory apparatus capable of matching your competitors,'' you're about to kill them.

Applications vs. platforms: The most powerful paradigm shift is the fact that applications are not woven into the platforms. . . .

Now to be a phone company, you don't have to weave tightly the voice service into the infrastructure. You can ride it on top of the infrastructure. So if you're a Vonage, you own no infrastructure. You own no trucks. You roll to no one's house. They turn voice into a application and shoot it across one of these platforms. And, suddenly, you're in your business.

And that's why if you're the music industry, you're scared. And if you're the television studio, movie industry, you're scared. And if you're an incumbent infrastructure carrier, you'd better be scared. Because this application separation is the most important paradigm shift in the history of communications, and will change things forever. . . . I have no problem if a big and venerable company no longer exists tomorrow, as long as that value is transferred somewhere else in the economy.

The FCC's media ownership rules: There is no question that there are an order of magnitude more media choices than at any time in our nation's history.

I don't know when this golden age was that everyone is benchmarking from. TV started by being dominated by three networks and three networks only, and it has done nothing but dilute since then. . . . Where was it more concentrated?

And we've had the invention of cable television, satellite television, the Internet. So you may disagree where to draw the line, but to argue for a line on the idea that the market is 10 times more concentrated than sometime . . . then you're just willing to have a debate not rooted in factual reality.

This is where Tantivy fits. Hoppy jumping phones. Once again, IDCC take a look at AIRN before someone else does.

One more point regarding management. Right now we have some growing pains. There will be mistakes, however one would imagine a good executive team would learn. Why do RIMM and QCOM blow bubbles while IDCC seems to gasp for air?

Call it corporate charisma. It's like the skinny, average dude with all the glamourous girls in tow, makes you wonder.

Economic Value Added, good will, call it what you like but some companies earn valuations beyond the numbers. They generally have management teams that produce...beyond what is expected. The market relies on the fact that they will make the right moves.

We were on that track, then NOK. Our management ran PR that led the the market to believe the money was done. Horsetrading straight to ARB. The market is a harsh and heartless critic.

We command a premium for nothing. Nada. We can cry all we want about the wolf who is a household name. Big News.

If I'm the household name, I hold out for terms, pressuring the 'mandate' to sign. They know who they are.

For new years I wish for the executives of this company to pipe down a bit and produce.

Perhaps, but the Nok/Sam issue does not exist in a vaccuum. One might expect news on government contracting/subcontracting or maybe some momentum at the operator level. Infineon's aggressive acquisition ambitions can only add to IDCC's future chip revenues.
Do not dismiss the Avnet ties. Frequently Avnet will provide venture funds to burgeoning tech firms. Having contacts there may or may not assist Charlie in his mission to grow IPR by acquisition.
As Rox posted there are significant developments lurking in our patent applications.
The market values QCOM's enterprise at a 72% premium to IDCC's regarding growth but who's revenues are growing faster?

My concern: Management, .16, .20, OFDM.

That said I believe Benjamin Graham might have an interest in a stock like IDCC.

Btw. I accept and respect that you are a successful trader, however you need to make twice as much profits or more to come close to what one makes as a successful investor.
Since you are successful and a short term trader you generate short term gains taxable at the highest marginal bracket? Regardless of your deductions, the taxable amount of your gains trigger significant taxes over time which removed from your identification of successful investments then triggers significant opportunity costs-the taxes due plus the growth they would have experienced.( $50,000 in tax payable each year at 15% opportunity cost = $5.8 mil over 20 years) This assumes a flat tax bill not a compound tax bill that would follow a more suucessful trader. Thus the more successful you are the worse this works out over time.
Preferential long term tax rates coupled with tax deferred growth...hey it's not as fun but economically more efficient

December 23, 2003 09:04 AM US Eastern Timezone

PCTEL and Intel Sign Broad Cross-Licensing Agreement; PCTEL Receives $14.5 Million

CHICAGO--(BUSINESS WIRE)--Dec. 23, 2003--PCTEL, Inc. (NASDAQ:PCTI), a leading provider of intelligent wireless solutions, and Intel Corporation, announced today that they had successfully concluded long-standing licensing discussions pertaining to modem technology. Under terms of the agreement, Intel will receive a license to all of PCTEL's patents. PCTEL will receive a cross-license to Intel owned patents that relate to PCTEL's business focus and a one time $14.5 million payment.
"We were pleased to reach this agreement," said Marty Singer, PCTEL's Chairman and CEO. "We are delighted about receiving a license to Intel's patents that might apply to our existing businesses," added Singer.

"Intel has long believed in licensing intellectual property in exchange for fair value," said Don Merino, director of strategic development for Intel. "We believe this agreement with PCTEL enables both companies to continue to develop products without fear of infringing on the other's intellectual property rights."

PCTEL shipped "soft" modems before selling the HSP modem product line to Conexant earlier this year. Since then, they have focused on licensing their modem technology. As part of their licensing campaign, they sued Broadcom, 3Com, U.S. Robotics, Agere, and Lucent for patent infringement. They recently settled with Broadcom.

About PCTEL (Nasdaq:PCTI)

PCTEL, founded in March 1994, is a leading provider of Wi-Fi and cellular mobility software, software-defined radio products and access technology. PCTEL's products include WLAN software products (Segue(TM) Product Line) that simplify installation, roaming, Internet access and billing. Through its subsidiary, DTI, the company designs, develops and distributes OEM receivers and receiver-based products that measure and monitor cellular networks. The company maintains a portfolio of more than 115 analog and broadband communications and wireless patents, issued or pending, including key and essential patents for modem technology. The company's products are sold or licensed to PC manufacturers, PC card and board manufacturers, wireless carriers, wireless ISPs, software distributors, wireless test and measurement companies, and system integrators. PCTEL headquarters are located at 8725 West Higgins Road, Suite 400, Chicago, IL 60631. Telephone: 773-243-3000. For more information, please visit our web site at www.pctel.com

Contacts


PCTEL, Inc.
John Schoen, 773-243-3000
john_schoen@pctel.com
or
Jack Seller (Public Relations), 773-243-3016
jack_seller@pctel.com

Could this be where the Ericsson reference design license gets dusted off and utilized?

Rand

WMANs set to grow; Intel support for WiMAX central

The growing demand for 3G backhaul, metro Ethernet, and wireless DSL services will drive worldwide sales of WMAN equipment to more than $5 billion per year by 2007, says Datacomm Research in a new report entitled "Wireless Metropolitan Area Networks: Opportunities and Illusions." Among the report's other insights and conclusions: the construction of 3G mobile phone networks, combined with the migration of subscribers to 3G, will be the single biggest driver of WMAN market growth; the second-largest WMAN application is "metro Ethernet," that is, interconnecting LANs in different buildings; WMANs are providing the equivalent of DSL and cable modem services in rural areas, developing countries, and underserved urban areas; Qualcomm's data-only version of CDMA2000, CDMA2000 1xEV DO, is gaining market traction; Intel's participation in the WMAN industry is a major wild-card factor (Intel has integrated Wi-Fi functionality in its Centrino mobile computing chipset). Now Intel is touting WiMax as the metropolitan area version of Wi-Fi (but note: Companies offering "cellular Wi-Fi" solutions beg to differ).

How about someone who can make TDD 'hop' on and off the IPv6?

Rand

Infineon Asks Holders To OK Sale Of Up To 175M Shrs
Tuesday December 16, 6:54 am ET


BERLIN (Dow Jones)--Infineon Technologies AG (NYSE:IFX - News) , seeking financial flexibility to expand, will ask shareholders at its annual meeting for approval to replenish a facility that allows the sale of as many as 175 million shares.


Europe's second-largest semiconductor maker said it needs to replace the 27.5 million shares it used from the existing facility to fund previous purchases. Based on Tuesday's price, the sale of 175 million shares would raise EUR2.0 billion.

"We expect consolidation in our industry in the near future," Infineon said in the invitation to the shareholder meeting published on its Web site. "The consolidation process will offer us good opportunities to acquire other companies and thereby strengthen further our position in the market."

German companies usually seek authorization for capital-raising measures at their annual meetings. Investors' support - usually a formality - doesn't necessarily mean that management will use the facilities in full.

Replenishing the stock sale facility, which was approved in 2002 and runs to 2007, means "we can complete even large acquisitions at speed if necessary," the Munich-based company said in its note to investors.

The move essentially replaces the shares that Infineon used to buy the microelectronics division belonging to Telefon AB LM Ericsson (ERICY) of Sweden.

Infineon is also asking for permission to extend the terms under which it can use a facility for issuing convertible bonds. The company already has shareholder backing to sell up to EUR4 billion of bonds by 2007.

Infineon is no stranger to large capital market transactions and has used shareholder approvals to raise funds several times in the past. It sold EUR1.5 billion worth of shares in July 2001, a EUR1 billion convertible bond in Feb. 2002 and EUR700 million of convertibles in April 2003.

Semiconductor makers need extra cash to be able to invest in new equipment and technology and keep pace with the tremendous rate of change in the industry.

Infineon Chief Executive Ulrich Schumacher said last month he'd consider looking at parts of Motorola Inc. (NYSE:MOT - News)'s business if the U.S. company decides to sell anything, though he wouldn't aggressively pursue a purchase.

In May, the company agreed to buy Norway's Sensonor ASA in a deal valued at EUR48 million. Sensonor makes products to test tire pressure and acceleration.

Heinz Steffen, an analyst at Fair Research in Frankfurt, said he would expect Infineon to make smaller acquisitions or buy in technology. The company is unlikely to invest in new production sites, he said.

By 0937 GMT, the stock was trading down EUR0.37, or 3.3%, at EUR11.01. The shares have gained 58% since the start of 2003, though they're trading off the year's high of EUR14.18 amid concerns over the profit outlook.

Steffen noted that if the dollar continues to fall against the euro, the recovery in Infineon's earnings "won't be so visible."

Merrill Lynch said in a research report Tuesday it's lowering its fiscal 2004 earnings estimates to EUR0.21 per share from a previous forecast of EUR0.56. Memory chip pricing "momentum remains negative in the near term," Merrill Lynch said, adding it's keeping its sell rating.

In the fiscal fourth quarter ended Sept. 30, Infineon posted its first quarterly profit in more than two years due to a revival in memory chip prices. The company has shed jobs and invested in technology to produce cheaper semiconductors.

Infineon said Tuesday it will outsource its European real estate and facility management activities to Berlin-based Dussmann AG. L'Air Liquide SA and Kinetics Group Inc. (Nasdaq:KNTX - News) will take over operation of the gas and chemicals supply and distribution at the European production sites.

Infineon said cutting the number of suppliers to three main contractors from 180 individual sources and transferring 200 staff will lead to savings of between EUR3 million to EUR4 million annually over the five-year term of the contract.

The total order value is EUR145 million, and the transfer of activities will take place in the first half of 2004.

"By outsourcing real estate and facility management we are systematically pursuing our restructuring program," Knut Merten, head of business re- engineering said in a statement.

Company Web site: http://www.infineon.com

-By Taska Manzaroli, Dow Jones Newswires; 49 30 2888 410; taska.manzaroli@dowjones.com