[opendtv] QUALCOMM Subsidiary to Support Nationwide Delivery of Mobile Multimedia in 700 MHz Spectrum
- From: Bill Sheppard <Bill.Sheppard@xxxxxxx>
- To: "OpenDTV (E-mail)" <opendtv@xxxxxxxxxxxxx>
- Date: Mon, 01 Nov 2004 18:50:30 -0800
http://biz.yahoo.com/prnews/041101/lam038a_1.html
QUALCOMM Subsidiary to Support Nationwide Delivery of Mobile Multimedia
in 700 MHz Spectrum
- New Distribution Channel to Complement Cellular Networks as a Shared
Resource for Operators -
Monday November 1, 7:31 am ET
SAN DIEGO, Nov. 1 /PRNewswire-FirstCall/ -- QUALCOMM Incorporated
(Nasdaq: QCOM <http://finance.yahoo.com/q?s=qcom&d=t> - News
<http://finance.yahoo.com/q/h?s=qcom>), pioneer and world leader of Code
Division Multiple Access (CDMA) digital wireless technology, today
announced plans for a subsidiary to deploy and operate a nationwide
"mediacast" network, delivering many channels of high-quality video and
audio programming to third-generation mobile phones at mass market
prices. MediaFLO(TM) USA Inc., a subsidiary of QUALCOMM, intends to
provide interactive multimedia services to consumers in cooperation with
U.S. cellular operators. MediaFLO USA has been structured as a
subsidiary because QUALCOMM intends ultimately to spin off its ownership
of the business to its shareholders.
"QUALCOMM strongly believes that the broad delivery of wireless
multimedia services is the logical next step in the evolution of the
wireless industry," said Dr. Paul E. Jacobs, executive vice president
and president of QUALCOMM Wireless and Internet Group. "Building on our
deep relationships with wireless operators, handset manufacturers and
content providers, we can accelerate the adoption of multimedia on
wireless devices by making it truly cost effective using our FLO
technology and prime nationwide 700 MHz spectrum."
QUALCOMM intends to offer the network as a shared resource for U.S.
CDMA2000 and WCDMA (UMTS) cellular operators, enabling them to deliver
mobile interactive multimedia to their wireless subscribers without the
cost of network deployment and operation. Subscribers will enjoy access
to a broad range of high-quality content from the entertainment
industry's leading media companies. MediaFLO USA will aggregate and
distribute the content that is available to all MediaFLO partners and
will provide seamless integration of this content with unique content
that individual operators provide to maintain their competitive
differentiation. The system will give TV stations and networks, cable TV
and satellite operators and networks, and other content providers a
major new distribution channel that complements their current offerings,
enabling them to reach their audiences when they are away from home and
on the go. U.S. consumers will gain access to compelling media services
whenever and wherever they want them.
"QUALCOMM's MediaFLO solution brings the cable and digital TV realms
into the mobile value chain," said Jane Zweig, CEO of The Shosteck
Group, an international telecommunications consultancy based in Wheaton,
Maryland. "New partnerships and new revenue streams will be enabled as
the content and mobile worlds become more tightly bound together. These
opportunities exist for both vendors and operators alike."
The nationwide mediacasting network will deliver multimedia content to
wireless mobile devices in the 700 MHz spectrum for which QUALCOMM holds
licenses that will enable the network to serve the whole country. It
will be based on QUALCOMM's FLO(TM) (Forward Link Only) technology (see
previous announcement, Oct. 12, 2004) and will use the MediaFLO media
distribution system for content aggregation, delivery and viewing. The
network will support 50-100 national and local content channels,
including up to 15 live streaming channels and numerous clip-cast and
audio channels. This content will be delivered in an easy-to-use and
familiar format at quality levels that dramatically surpass current
mobile multimedia offerings through the use of QVGA video at up to 30
frames per second and high-quality stereo audio.
FLO technology in the 700 MHz spectrum (UHF channel 55) offers distinct
efficiency and cost advantages in delivering content to a very large
mobile subscriber base. Deploying high-power transmitters on tall towers
provides superior coverage with 30 to 50 times fewer towers than
cellular and higher frequency-based systems. QUALCOMM acquired the
majority of this spectrum in the June 2003 Federal Communications
Commission (FCC) Auction No. 49, using a portion of the Company's
Auction Discount Voucher, and the remainder in October 2004 via a
transaction with the original licensee.
Partnering cellular operators will be able to offer new interactive and
differentiated services in conjunction with their CDMA2000 1X, 1xEV-DO
and WCDMA cellular networks without the cost of further deployment or
need for new spectrum. FLO technology is specifically designed to
minimize the power consumption and size of mobile phones, and to
integrate into the baseband chip.
QUALCOMM's MediaFLO USA Inc. cash requirements for its business plan are
expected to be approximately $800 million in investments over the next 4
to 5 years, some of which may be funded by third parties. QUALCOMM
expects to begin commercial operation of the new network in 2006.
QUALCOMM Incorporated (www.qualcomm.com <http://www.qualcomm.com>) is a
leader in developing and delivering innovative digital wireless
communications products and services based on the Company's CDMA digital
technology. Headquartered in San Diego, Calif., QUALCOMM is included in
the S&P 500 Index and is a 2003 FORTUNE 500® company traded on The
Nasdaq Stock Market® under the ticker symbol QCOM.
Except for the historical information contained herein, this news
release contains forward-looking statements that are subject to risks
and uncertainties, including the timing and extent to which the MediaFLO
operator, the FLO technology and the MediaFLO media distribution system
achieve commercial acceptance and the 700 MHz spectrum is cleared of
current UHF television operations, the possibility that third parties
may not fund any portion of the cash requirements of the MediaFLO
operator, change in economic conditions of the various markets the
Company serves, as well as the other risks detailed from time to time in
the Company's SEC reports, including the report on Form 10-K for the
year ended September 28, 2003, and most recent Form 10-Q.
QUALCOMM is a registered trademark of QUALCOMM Incorporated. MediaFLO
and FLO are trademarks of QUALCOMM Incorporated. All other trademarks
are the property of their respective owners.
Christine Trimble, Corporate Public Relations
Phone: 1-858-651-3628
E-mail: publicrelations@xxxxxxxxxxxx <mailto:publicrelations@xxxxxxxxxxxx>
or
Emily Gin, Corporate Public Relations
Phone: 1-858-651-4084
E-mail: publicrelations@xxxxxxxxxxxx <mailto:publicrelations@xxxxxxxxxxxx>
or
Bill Davidson, Investor Relations
Phone: 1-858-658-1818
E-mail: ir@xxxxxxxxxxxx <mailto:ir@xxxxxxxxxxxx>
http://biz.yahoo.com/prnews/041101/lam038a_1.html
--
-------------------------------------------------------------------------
Bill Sheppard Industry Marketing Manager
bill.sheppard@xxxxxxx Consumer and Mobile Systems Group
(408) 404-1254 (x68154) Sun Microsystems, Inc.
--
-------------------------------------------------------------------------
Bill Sheppard Industry Marketing Manager
bill.sheppard@xxxxxxx Consumer and Mobile Systems Group
(408) 404-1254 (x68154) Sun Microsystems, Inc.
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