QUALCOMM Unveils Wireless Internet Strategy

- High Data Rate Technology Demonstrates Mobile Wireless Internet Access -

QUALCOMM Incorporated (Nasdaq: QCOM), pioneer and world leader of Code Division Multiple Access (CDMA) digital wireless technology, today successfully demonstrated its new High Data Rate (HDR) technology that is fully compatible with existing cdmaOne™ technology and capable of supplying reliable and cost-effective wireless Internet access to consumers. HDR is expected to be competitive with Digital Subscriber Line (DSL) and cable-based solutions, and will support mobile access. Data rates of up to 1.8 Megabits per second (Mbps) in a fixed and mobile environment were demonstrated utilizing a variety of terminal equipment.

In a separate announcement, the Company also released details of the introduction of a new family of chipsets and system software that support HDR technology.

"On the tenth anniversary of our first public demonstration of CDMA technology, we are demonstrating an equally exciting new technology -- HDR," said Dr. Irwin M. Jacobs, chairman and CEO of QUALCOMM. "HDR is compatible with cdmaOne infrastructure and spectrum assignments and provides a high burst rate, always-on, cost effective wireless Internet access using standard Internet Protocols."

"The proven quality, reliability and cost effectiveness of CDMA technology have resulted in CDMA becoming the fastest-growing wireless technology today for voice communication. With the Megabit-per-second data speeds supported by HDR, QUALCOMM is cooperating with the industry to quickly extend the advantages of CDMA to support the rapidly growing high-speed fixed Internet market and making the Internet easily available to mobile users."

Today's event featured live field demonstrations of QUALCOMM's HDR technology in fixed and mobile computing environments and presentations by Dr. Jacobs and other Company executives, including an example business model in a select market. The event serves as a preview to a two-day symposium, November 9-10, when QUALCOMM will host wireless operators, manufacturers and partners to discuss the wireless Internet and feature additional live HDR field demonstrations.

HDR provides a spectrally efficient peak data rate of up to 2.4 Mbps in a standard 1.25 MHz channel bandwidth. Optimized for packet data services, HDR incorporates a flexible architecture based on standard Internet Protocols (IP). HDR's IP-based architecture allows flexible implementation of this wireless system in high-performance and cost-effective ways.

As a complementary solution to voice networks utilizing operator's existing cell sites, towers, antennas and network equipment, HDR technology allows operators to leverage their current infrastructure investment and cellular/Personal Communication Services (PCS) networks. It can also be implemented as a stand-alone system using off-the-shelf IP backbone equipment. HDR is compatible with IS-95A, IS-95B and future cdma2000™ networks, enabling existing cdmaOne and cdma2000 service providers to obtain higher capacities and superior performance by optimizing voice and data spectrum separately, serving both applications from the same network.

HDR supports e-mail, web browsing, e-commerce, telematics and many other applications while offering end-users continuous, untethered access to the Internet and next generation data services. HDR's versatility allows the technology to be embedded in handsets, laptop and handheld computers, and other fixed, portable and mobile devices.

QUALCOMM has filed numerous patent applications and has already been issued a number of patents to obtain broad coverage for its HDR technology.

CDMA is the fastest-growing digital technology today serving more than 35 million subscribers worldwide. It has gained worldwide acceptance by offering capacity, coverage and voice quality advantages over other wireless technologies. As the primary developer of CDMA technology and a leading manufacturer of CDMA products and services, QUALCOMM continues to drive the design, direction, standardization, research and development of CDMA. QUALCOMM currently licenses CDMA technology to more than 75 companies and CDMA is the technology of choice for third-generation digital wireless systems.


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