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News
Issue #2002 - 43 (November 2002)
(Updated Nov. 13, 2002)

TECHNOLOGY

Qualcomm Ships Chip For Phones That will Ease Migration - GSM to CDMA

Qualcomm has begun shipping a chip that enables a mobile phone to use almost any of the world's wireless networks, regardless of the communications standard it's based on. The new MSM6300 chip, sent to manufacturers earlier this month, essentially allows for two phones in one, a Qualcomm representative said Tuesday. The chip contains enough silicon to create phones capable of using networks built around the Code Division Multiple Access (CDMA) standard, as well as those based on the Global System for Mobile Communications (GSM) standard.

The two incompatible phone standards now power about 90 percent of the world's wireless networks. Most cell phones today are either CDMA or GSM, so a traveler who wants to do some wireless globe-trotting usually needs two different phones, phone plans and phone numbers.

The MSM6300 chip was made with those--mostly business--customers in mind, said Qualcomm representative Stacy Getz, including people shuttling regularly between the United States, where CDMA is the dominant standard, and Europe, where GSM is behind nearly every telephone network. The new chip is among the biggest pushes yet by phone makers to create a single phone that can work anywhere. 

Most carriers are still taking half steps toward this goal, which is supposed to be a chief draw for luring corporate clients. Nextel Communications, for instance, still forces corporate clientele to buy two different phones to travel worldwide, however, the phones can now share the same number. Qualcomm began shipping samples of the chip earlier this month to a number of cell phone makers, Getz said. She did not disclose what manufacturers have received the chips.

According to a source, Verizon Wireless plans to sell phones based on the MSM6300 chips once manufacturers have them ready. It's likely the phones could start appearing in the United States and elsewhere by the first half of 2003, the source said. Getz did not comment on Verizon's plans, but said the nation's No. 1 carrier would be a good fit. Verizon uses CDMA in its telephone network in the United States, but the company is owned by Vodafone, one of the biggest GSM providers on the planet. Vodafone is reportedly pressuring Verizon Wireless to switch to GSM. Verizon Wireless representative Brenda Raney wouldn't confirm the source's assertions, but indicated that plans to sell the "world phones" could be in the future. "We put pressure on our vendors to go to a one-handset solution for global roaming," Raney said

Sprint PCS, KDDI in Japan and Bell Mobility in Canada are also said to be interested in selling phones using the MSM6300 chips, a source said. A Sprint PCS representative did not immediately return a call for comment. KDDI and Bell Mobility representatives could not be reached for comment. 

For more information: http://www.qualcomm.com

MobileInfo Comments and Advisory: We are delighted at this development. Consumers and professionals DO need one phone that should work everywhere. We have called for the wireless network industry to learn from the fixed telephone industry. Until the industry wakes up and removes these artificial barriers, we will not make enough progress. The carriers can and should exert more pressure. GSM industry and its backers must get rid of its monopolistic attitude and allow this to happen. They should join the natural flow. If Berlin wall came down and communism accepted defeat, it was because the will of the people forced the change. Customers want freedom to use their favorite smart phone anywhere and not be bothered by infighting between the two camps. We throw this challenge to Nokia - In order to maintain your leadership, please use this chip or a variation and build a common interoperable phone.

Note: This news release may contain forward-looking statements within the meaning of section 27A of the Securities Act of 1933 and section 21E of Securities Exchange act of 1934 in USA. Similar provisions exist in other countries. There is no assurance that the stipulated plans of vendors will be implemented. MobileInfo does not warrant the authenticity of the information. Readers should take appropriate caution in developing plans utilizing these products, services and technology architectures.  All trademarks used in this summary are the property of their respective owners.


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