QUALCOMM and Northern Telecom Form Strategic Alliance for CDMA Cellular and PCS Infrastructure
Agreement Hastens CDMA Network Availability and SupplySAN DIEGO - December 9, 1994 - QUALCOMM Incorporated (NASDAQ: QCOM) and Northern Telecom (NYSE:NT) today announced the signing of a series of definitive agreements for the design, development, manufacture and sale of Code Division Multiple Access (CDMA) cellular and personal communications services (PCS) infrastructure equipment. The agreements create an important long-term strategic alliance between the two companies and help assure the timely availability of CDMA networks for U.S. PCS and cellular carriers worldwide.
Under the terms of the multi-million dollar agreements, QUALCOMM will share with Northern Telecom its designs for CDMA infrastructure products being developed for cellular, PCS and wireless local loop applications, and the companies will work together to provide fully integrated CDMA systems. The CDMA infrastructure products include various types of base station equipment, base station controller equipment, network interface and switching equipment. The system architecture incorporates a unique design that is optimized for CDMA applications by taking advantage of ATM-based packet switching in the base station controller.
Northern Telecom will also manufacture integrated CDMA systems throughout the world, and will source its requirements for CDMA base station and base station controller equipment both from its own factories and from QUALCOMM. CDMA systems developed under these agreements are expected to be available for commercial shipments in the second half of 1995.
Partnering with wireless telecommunications experts whose technical and marketing skills complement our own allows us to leverage our combined resources, said Dr. Irwin Jacobs, chief executive officer of QUALCOMM. This synergistic relationship is part of QUALCOMM's commitment to work cooperatively with a broad range of industry licensees to meet worldwide demand for CDMA products and services .
CDMA is an important technology to Northern Telecom, said Dave Twyver, president, Wireless Systems, Northern Telecom. Our partnership with QUALCOMM reinforces our commitment to CDMA and provides an excellent opportunity to quickly enter the growing CDMA market and expand our business with current customers while building relationships with new customers.
Northern Telecom and QUALCOMM will also provide turnkey installation of CDMA networks, including network and coverage planning services, cell site commissioning, back-haul equipment installation, customer training and support. In addition, the companies will offer network and subscriber equipment interoperability certification programs, operator and user interface software customization, and other value-added products and services.
Northern Telecom is a leading global manufacturer of telecommunications equipment, providing products and services to telephone companies, cable television companies, cellular and personal communications services (PCS) providers, corporations, governments, universities, and other institutions worldwide. A global leader in the design and manufacture of wireless communications systems, Northern Telecom's products for this market include digital cellular radio equipment and turnkey digital cellular and PCS networks, digital cellular and PCS terminals, Proximity digital wireless access networks, and Companion digital wireless business systems.
Headquartered in San Diego, QUALCOMM develops, manufactures, markets, licenses and operates advanced communications systems and products based on its proprietary digital wireless technologies. The Company's primary product and development areas are the OmniTRACS[[dieresis]] system (a geostationary satellite-based, mobile communications system providing two-way data and position reporting services), CDMA wireless communications systems and products and, in conjunction with others, the GLOBALSTAR[[ordfeminine]] low-earth-orbit (LEO) satellite communications system. Other Company products include the Eudora[[dieresis]] by Qualcomm electronic mail software, VLSI components and communications equipment.
OmniTRACS is a registered trademark of QUALCOMM Incorporated.
GLOBALSTAR is a trademark of Globalstar, L.P.
Eudora is a registered trademark of the University of Illinois licensed to QUALCOMM Incorporated.
Proximity and Companion are trademarks of Northern Telecom.