Qualcomm Inc (QCOM)

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Qualcomm backs advanced wireless services

By Jennifer Davies
UNION-TRIBUNE STAFF WRITER

March 23, 2004

ATLANTA – Qualcomm is making a big bet that wireless multimedia applications are going to be in demand.

The San Diego wireless technology company announced three initiatives yesterday that will help deliver three-dimensional games, as well as video to cell phones at the Cellular Telecommunications & Internet Association trade show.

Paul Jacobs, president of Qualcomm's wireless and Internet group, said the company has created a way to deliver video that doesn't overburden cell phone networks and doesn't force consumers to deal with delays or buffering issues.

Called MediaFLO, the technology allows wireless phone companies to send video in hours when their networks aren't busy. The video is then stored on a consumer's cell phone, with the subscriber choosing when to watch it.

Qualcomm said it is targeting wireless phone companies that use its application download technology called BREW to deploy MediaFLO.

Qualcomm also said it is teaming up with ATI Technologies to offer three-dimensional games on cell phones by including ATI's architecture on the wireless chips that Qualcomm makes.

ATI designs and manufactures 3-D graphics for a variety of devices, including computers, digital televisions and handhelds. The company had revenue of more than $1.3 billion in 2003.

Financial terms of the deal between ATI and Qualcomm were not disclosed.

Qualcomm also said it is licensing RealNetworks' technology to offer audio and video on cell phones.

Sanjay Jha, president of Qualcomm's wireless chip division, said the company is focusing on multimedia because it is what will drive demand for wireless devices.

As proof of demand for next-generation applications, Qualcomm announced that its BREW technology had reached the milestone of 150 million downloads. BREW, which is offered by several cellular companies, including Verizon Wireless, allows customers to download games, ring tones and applications like MapQuest to their phones.

The success of BREW is due to the fact that it benefits both developers and wireless carriers, he said.

"Everybody is making money," Jacobs said. "Developers are making money. The carriers are making money. And, yes, even Qualcomm is making money."

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