(February 1, 1999) - Nokia and InterDigital Communications Corporation (ASE: IDC) today
announced a long-term co-operation agreement involving the development of new technology
for third generation wireless telecommunications products designed for high data rate
applications, such as Internet access.
Under the multi-year agreement, InterDigital will deliver technology building blocks for
Nokia to use in third generation wireless products. The agreement, which
includes paid up TDMA and CDMA patent licenses which generally extend through the project
period, has an estimated value to InterDigital of approximately USD
70 million, including an initial payment of approximately USD 30 million. The companies
have defined a framework for establishing licensing terms after the initial
licensing period.
"Nokia is committed to furthering the development of third generation technologies,
which will herald the era of a true Wireless Information Society. In addition to
Nokia's own core development of third generation, we place great emphasis on additional
R&D, including co-operation with key industry players," said Ahti
Väisänen, Vice President, Third Generation Technology, Nokia Mobile Phones. "Nokia
believes that its work with InterDigital over the next several years will
complement its own development of third generation products," he said.
Harry Campagna, Chairman of InterDigital, said: "Nokia has selected us to develop an
important component of third generation wireless technology. In doing so, this
global telecommunications leader recognizes our expertise in developing air interface
technologies. This is an important relationship for us. The telecommunications
industry is moving aggressively to address the demand for high-speed data capability and
we are pleased to be participating in that technology arena. Our work with
Nokia will broaden our position as a developer of leading-edge technologies and enable us
to grow as third generation technologies are commercialized.
"In working for Nokia, we will use our technical expertise to design advanced
technology and we will retain ownership rights over the technology we develop. This will
enable InterDigital to produce and sell products utilizing the new technology, as well as
license other companies under the technology," he said.
InterDigital develops and markets wireless telecommunications systems and components using
both proprietary and standards compliant technologies for voice and
data communications. In the past twelve months, InterDigital has developed relationships
with a leading wireless access provider, and now, the number one mobile
phone supplier in the industry, Nokia.
As InterDigital begins its work for Nokia, it will also remain committed to B-CDMATM
technology for the wireless local loop and will continue to work in close
cooperation with the B-CDMA AllianceTM.
In conjunction with the B-CDMA Alliance TM, which consists of Siemens AG, Samsung
Electronics Co. Ltd., and Alcatel Alsthom, InterDigital is commercializing
its new B-CDMATM technology for use in wireless communication products. InterDigital®,
Broadband Code Division Multiple AccessTM, and B-CDMATM are
among the trademarks of InterDigital Communications Corporation. As used herein, where the
context so requires, references to InterDigital Communications
Corporation includes reference to InterDigital Technology Corporation, the holder of
InterDigital patents.
Nokia's in-depth know-how of wireless systems is acknowledged world-wide, and Nokia plays
a central role in taking the future-proof GSM platform further into
third-generation telecommunications systems with the UMTS (Universal Mobile
Telecommunications System) and IMT-2000 (International Mobile
Telecommunication System 2000) technology.
Nokia is the world's leading mobile phone supplier and a leading supplier of mobile and
fixed telecom networks including related customer services. Nokia also
supplies solutions and products for fixed and wireless datacom, as well as multimedia
terminals and computer monitors. In 1998, net sales totaled FIM 79.2 billion
(USD 15.7 billion, EUR 13.3 billion). Headquartered in Finland, Nokia is listed on five
European Stock Exchanges and on the New York Stock Exchange (NOK.A), has sales in over 130
countries and employs more than 44,000 people worldwide.
Contact information:
Ms Arja Suominen, Vice President, Communications
Nokia Telecommunications
Tel: (Int.) + 358 9 5113 8193
Fax: (Int.) + 358 9 5113 8199
Tapio Hedman, Vice President, Communications
Nokia Mobile Phones
Tel: (Int) +358 10 505 5750
Tel: (Int) +358 10 505 5782
Susan Sutton, InterDigital Communications Corporation,
Corporate Communications
Tel: +1 610 878-5677
http://www.interdigital.com.
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