3G phones begin shipping in North America

LOS ANGELES: Qualcomm Inc. said on Wednesday that North American carriers

running wireless networks based on the company's proprietary standard have begun

receiving shipments of the next generation of high-speed phones and other

devices.

San Diego-based Qualcomm said phones and wireless modems compliant with the

2000 1X standard of its Code Division Multiple Access technology had begun

shipping from vendors that include Kyocera Corp., LG Electronics Inc. and Sierra

Wireless Inc.

A Qualcomm spokeswoman said all 29 CDMA carriers in North America, including

market leader Verizon Wireless, have begun receiving the new equipment. The CDMA

chipsets that operate the devices began shipping in volume in October to

manufacturers to produce the new devices, the company said.

At that time, Qualcomm said 3G-compliant products were expected on the market

by the end of 2001.

Sprint PCS Group, the No. 4 US carrier, recently began selling AirPrime's

Digital Link, an expansion module that turns personal digital assistants made by

Handspring Inc. into cell phones. It is one of the first 3G-capable products

available on the market.

Sprint and the other major CDMA carrier in the United States, market leader

Verizon Wireless (a joint venture of Verizon Communications and Vodafone Group),

have both said they will launch their 3G network upgrades this year.

Qualcomm derives the bulk of its revenue from licensing its technology to

carriers and phone equipment makers. It also designs the chipsets used in CDMA

phones and other devices. CDMA 2000 1X is commonly referred to as a

third-generation, or "3G," network standard. It offers always-on data

connections at rates of up to 153 kilobits per second, as well as better call

quality and improved battery life.

3G phones are also expected to offer features like position location through

the Global Positioning System, wireless connectivity to computers and handheld

devices through the Bluetooth standard, and streaming audio and video clips.

Qualcomm said the roll-out of the new 3G products would be dependent on the

upgrade schedules of the carriers. CDMA 2000 networks were first rolled out in

South Korea last year.

(C) Reuters Limited.