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IP: Edging Qualcomm Out of CDMA Equation? By Kristy Bassuener


From: David Farber <dave () farber net>
Date: Mon, 24 Sep 2001 20:59:36 -0400


From: Dewayne Hendricks <dewayne () warpspeed com>


Edging Qualcomm Out of CDMA Equation?  By Kristy Bassuener
September 24, 2001
<http://article.WirelessWeek.com/UM/T.ASP?A3.3.311.4.460395446>

Software defined radio player Advanced Communications Technologies Inc. today said it has completed a mobile-phone call on an SDR platform using the CDMA protocol without the use of any CDMA-specific hardware or Qualcomm chipsets. The firm said its accomplishment can offer carriers 'significant savings' from Qualcomm licensing fees, according to a statement.

'Qualcomm has been reputed to have a stranglehold on CDMA as far as network providers are concerned,' said Roger May, chairman of ACT-USA. 'Until now, there was no other way to provide a CDMA-based service and network operators were bound to pay substantial license fees to Qualcomm for the use of their CDMA chipsets... ACT's SpectruCell SDR base station technology is able to complete these same processes in software which effectively bypasses the majority of Qualcomm's patents on CDMA.'

Neither May nor other ACT representatives could be reached to further discuss the announcement, which may draw ire from Qualcomm. The San Diego-based firm sold its handset division to Kyocera and almost spun off its semiconductor unit to focus exclusively the revenue potential of its numerous patents on CDMA technology. The ability to bypass Qualcomm's licensing fees could possibly affect the company's future revenue-generating capabilities.

'Our patent portfolio includes all essential patents needed to deploy CDMA,' said Qualcomm spokeswoman Patty Goodwin. '[ACT] claims don't merit comment beyond that.'

Industry analyst Jeff Kagan points out that we may see more of this kind of announcement in the future. 'While the drooping stock market has stolen the headlines for the last year or so, that hasn't stopped America's R&D engine,' Kagan said. 'In general, I expect to see a big wave of invention and innovation in coming months. Market leaders like Qualcomm are always a big target for competitive technologies.'

Investors, so far, haven't showed concern over Qualcomm shares. The company today announced a CDMA licensing agreement with Mobens Company, and shares at midday were up more than 6 percent to $47.64.




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