|
Newsletters
|
|
|
|
|
|
WirelessDevNet.com Press Release
QUALCOMM Subsidiary to Support Nationwide Delivery of Mobile Multimedia in 700 MHz Spectrum
SAN DIEGO, Nov. 1 -- QUALCOMM Incorporated
(Nasdaq: 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) 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(R)
company traded on The Nasdaq Stock Market(R) under the ticker symbol QCOM.
|
|
|
