InterDigital Inc (IDCC)

[nieves]

The Wait is Over for UMTS Handsets


SCOTTSDALE, Ariz., Jan 29, 2003 /PRNewswire via COMTEX/ -- The lack of
Universal Mobile Telecommunication System (UMTS) handsets that has plagued the
launch of third generation Wideband Code Division Multiple Access (WCDMA)
networks, is no longer an issue, according to In-Stat/MDR (
http://www.instat.com ). The high-tech market research firm reports that, as
operators are poised to launch new networks across Europe in coming months,
several manufacturers have deployed (or are about to) new devices, and supplies
should be ample, if not plentiful.

"The next hurdle to 3G deployment will be user acceptance," says Neil Strother,
a Senior Analyst with In-Stat/MDR. Other hurdles include:


-- Handset testing that involves more than 1,000 different parameters
before commercial viability (compared with 300 for traditional phones)

-- Voice call handovers between older networks and UMTS systems are still
not smooth, and will require more fine-tuning to reduce dropped calls

-- Handset software glitches (like the one that hit NTT DoCoMo's FOMA
T2101V handsets earlier this year where incoming calls were missed when
the phone was in energy-saving mode)

However, In-Stat/MDR predicts these problems will be overcome, and handset
supplies will begin to build to significant levels starting this year. One of
the key drivers will be the launch by Hutchison Whampoa of its "3" networks
across the European continent, first in Italy and the United Kingdom, and later
in other countries. In-Stat/MDR expects about 2 million UMTS handsets to ship
next year, based on announced orders. That figure could climb somewhat, if
Hutchison's networks get a positive response and economic conditions improve.
But an increase is unlikely given high handset prices, and uncertain market
conditions. However, as the advanced phones gain favor among mobile
professionals and early-adopters, these devices will carve out a solid niche in
years to come.

The report, "Turbocharged Handsets: The Real Story on UMTS (WCDMA) Phone
Availability" (#IN020513WH), outlines which manufacturers have deployed (or are
about to) the speedy new devices that meet the Universal Mobile
Telecommunication System (UMTS) standard for data services. The report also
addresses why supplies should be ample in 2003, how many units will ship next
year, what models to expect from various vendors, what challenges vendors and
carriers face and what the long-range shipment forecast is. In addition, the
report also gives insight into Hutchison Whampoa's 3G push across Europe, and
the related UMTS handset moves with supplier (and partner) NEC. To purchase this
report, or for more information, please visit:
http://www.instat.com/catalog/cat-wh.htm or contact Rick Vogelei at
480.609.4533; [e-mail]. The report price is $1,995 USD.

About In-Stat/MDR

In-Stat/MDR ( http://www.instat.com ) offers a broad range of information
resources and analytical assets to technology vendors, service providers,
technology professionals, and market specialists worldwide. The company stands
alone in its ability to integrate both supply-side and demand-side research
methodologies into a single comprehensive view of technology markets and
products. This capability relies on a unique ability to cover the entire value
chain from engineering-level technology, through equipment, infrastructure,
services and end-users.

In-Stat/MDR is part of the Reed Electronics Group, a division of Reed Elsevier (
www.reedelsevier.com ), a world-leading publisher and information provider. With
over 38,000 employees worldwide, Reed Elsevier operates in the science &
medical, legal, education and business-to-business industry sectors, providing
high value and flexible information solutions to professional end users, with
increasing emphasis on the Internet.

For further information, please contact: Neil Strother, Senior Analyst -
Wireless Handsets and Access Devices, [phone], [e-mail], or
Kirsten Skedd, Marketing Manager, [phone], [e-mail], both of
In-Stat/MDR.

SOURCE In-Stat/MDR


CONTACT: Neil Strother, Senior Analyst - Wireless Handsets and Access
Devices, [phone], [e-mail], or Kirsten Skedd, Marketing
Manager, [phone], [e-mail], both of In-Stat/MDR

URL: http://www.reedelsevier.com
http://www.instat.com/catalog/cat-wh.htm
http://www.instat.com
http://www.prnewswire.com

Copyright (C) 2003 PR Newswire. All rights reserved.

-0-


KEYWORD: Arizona
INDUSTRY KEYWORD: CPR
STW
TLS
HRD
CSE
SUBJECT CODE: SVY

(Wall Street)





Daniel Nieves