InterDigital Study Outlines 50% Cost Savings for Wireless Operators
CANNES, France, Feb 17, 2003 (BUSINESS WIRE) -- InterDigital Communications Corporation (NASDAQ:IDCC), a leading architect, designer and provider of wireless technology and product platforms, today announced at the 3GSM Congress in Cannes, France the results of a third generation (3G) wireless economic and performance study conducted with the U.S.-based research firm Arthur D. Little (ADL). The joint, year-long study found significant capital, operating and total cost of ownership savings for operators that deploy Wideband TDD (WTDD) as part of a complete WCDMA wireless solution. The study also determined that WTDD deployed in a single 5MHz unpaired band provided higher capacity for data-intensive applications like video, internet access or multi-media messaging than FDD similarly deployed in two 5MHz paired bands of wireless spectrum.
WTDD is WCDMA for the unpaired spectrum and is fully harmonized with FDD technology in the paired spectrum. Together they form a complete WCDMA solution, the 3G evolution from GSM wireless. Standards-based WTDD will enable WCDMA-based networks and products to deliver voice, data and multimedia applications efficiently and cost effectively worldwide with full mobility and security.
Based on research conducted by the International Telecommunications Union (ITU), the UMTS Forum and other publicly available industry analyses, the InterDigital/ADL study evaluated potential applications of WTDD in urban and suburban area deployments. The deployment of WTDD was further evaluated from three operational scenarios where fully mobile voice and data services, packet and circuit switch connections are essential: wide area broadband coverage; capacity enhancement and "hotzone" coverage for heavy mobile and nomadic traffic usage.
The joint study concluded that WTDD deployed for capacity enhancement can provide approximately 50% savings for operators in projected network capital and operating costs over a ten year period; and 25 to 35% savings in wide-area broadband data deployment scenarios. An additional 15% cost savings over the same period of time can be achieved by deploying WTDD in 10MHz of spectrum, rather than 5MHz.
"There is a growing appetite in the global consumer market for wireless data on the go, as reflected in the increasing demand for camera phones, other mobile data devices and the applications that support them," said Dr. Alain Briancon, InterDigital's Chief Technology Officer. "This consumer demand is matched by an obvious expectation and desire on the part of operators for higher revenues per user, lower costs of deployment and the capability to adapt deployments to their unique marketing and operational needs.
"We see tremendous opportunities to simultaneously meet operator requirements, drive higher operator revenue and margins, and exceed end user customer expectations through the deployment of WTDD as part of a complete WCDMA solution. The findings of this study, validated by the independent participation of Arthur D. Little, confirm the singular advantages offered through fully leveraging the unpaired spectrum already available to the vast majority of operators as a result of their WCDMA spectrum purchases or allocations," concluded Briancon.
"Today, operators are focused on maximizing the revenue opportunities in 3G while at the same time reducing their costs. The only way that can happen is to maximize the spectrum available to them," said Dr. Martyn Roetter, Vice President, Communications and Information Technology at Arthur D. Little. "In comparing spectrum utilization for asymmetric data applications, it became very clear that standards-based WTDD is a technology path to accomplishing both objectives. It offers significant performance and economic advantages over FDD in very critical deployments."
The study also found that WTDD deployed in a single, unpaired 5MHz band -- utilizing InterDigital's multi-user detectors (MUD) receivers and SmartRRM(SM) radio network controller -- could support over 70% more users per cell at 384 kbps data transmission than 10MHz of FDD comparably deployed. Capacity improvements also were seen at data speeds of 64 and 144 kbps.
Conducted by InterDigital and Arthur D. Little, the purpose of the study was to quantify the economic and spectral efficiency advantages for carriers when deploying and operating standards-based WTDD, and to determine the deployment scenarios where WTDD would generate the greatest operator cost savings. The study analysis and findings were based on representative examples of urban and suburban wireless deployments and growth scenarios in London, Munich and Hong Kong.
About Arthur D. Little
Arthur D. Little founded the consulting industry, and is the longest continuously operating independent global management consulting firm. ADL has more than 116 years of experience helping clients develop practical strategies that mobilize businesses to achieve fast and sustainable performance improvement. Today, the firm continues that heritage, uniting strategy and tactical implementation for clients in more than 15 industries, from information, media and electronics to automotive and transportation. With more than 30 offices in 23 countries, the ADL global network provides clients the resources of more than 1,000 consultants worldwide. For more information about ADL, visit their website at www.adl.com.
About InterDigital
InterDigital architects, designs and provides advanced wireless technologies and products that drive voice and data communications. The Company offers technology and product solutions for mainstream wireless applications that deliver cost and time-to-market advantages for its customers. InterDigital has a strong portfolio of patented technologies covering 2G, 2.5G and 3G standards, which it licenses worldwide. For more information, please visit InterDigital's web site: www.interdigital.com.
This press release contains forward looking statements regarding our beliefs and expectations as to the anticipated capabilities, capacity enhancements, and other benefits including operator savings, associated with deployment of WTDD, including deployment as part of a complete WCDMA solution. Such statements are subject to risks and uncertainties. Actual outcomes could differ materially from those expressed in any such forward looking statement due to a variety of factors including but not limited to: the risks inherent, including unanticipated difficulties or delays, in any technology deployment; variations to the assumptions underlying the statements and those incorporated into the study; deployment scenarios and time periods different from those in the study; and changes in the 3G standard that adversely impact the applicability of TDD to WCDMA. We undertake no duty to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise.
InterDigital is a registered trademark and SmartRRM is a service mark of InterDigital Communications Corporation. All other trademarks are the property of their respective owners.
CONTACT: InterDigital Communications Corporation
Dawn Goldstein, 610/878-7800
E-mail: dawn.goldstein@interdigital.com
Janet Point, 610/878-7800
E-mail: janet.point@interdigital.com
(c) 2003 Business Wire. All reproduction, other than for an individual user`s reference, is prohibited without prior written permission.
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KEYWORD: PENNSYLVANIA
FRANCE
INTERNATIONAL
EUROPE
SUBJECT CODE: TELECOMMUNICATIONS
COMPUTERS/ELECTRONICS HARDWARE
SOFTWARE
INTERNET
TRADESHOW
SOURCE:
InterDigital
Communications
Corporatio
