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Microsoft, Qualcomm in wireless deal

By Reuters
New Orleans, 29 Feb 2000

Mobile phone technology company Qualcomm and Microsoft said on Monday they planned to jointly develop advanced wireless devices, expanding their relationship as the software giant continues its push into the communications market.

Qualcomm`s shares ended up 9 11/16 at 143 1/4 on the Nasdaq stock market after the deal was announced, while Microsoft rose 1/4 to 91 9/16, also on Nasdaq.

The new deal calls for the companies to focus on developing hardware reference designs for mobile devices, including so-called smart phones and wireless pocket personal computers, the companies said in a statement. Financial terms were not disclosed.

The "smart" phones would be based on the Microsoft Mobile Explorer wireless communications platform; the wireless pocket personal computers would use Qualcomm CDMA Technologies` chipset and system software.

CDMA (code division multiple access) technology is considered the foundation for future "third-generation" technology that will allow more sophisticated mobile services.

The new deal expands on Qualcomm and Microsoft`s existing alliance, started in 1998 when the companies formed a joint venture called Wireless Knowledge that provides platforms and services to corporate customers and application providers to enable applications for the mobile Internet.

Under the new deal Qualcomm and Microsoft will also work together to promote their products and services for advanced wireless devices.

Microsoft has also sought access to the exploding market for wireless communications through its $600 million investment in Nextel Communications in May 1999 as well as deal to set up a joint venture company with Swedish mobile phone maker Ericsson.

Redmond, Wash.,-based Microsoft also rolled out a service in June 1999, called MSN Mobile, to push stock quotes, sports reports and other information to pagers and digital phones.

San Diego-based Qualcomm unveiled several other deals on Monday from New Orleans, site of the Cellular Telecommunications Industry Association trade show.

Qualcomm also said it had allied itself, partnered with or extended alliances with RF Micro Devices, the Symbian wireless joint venture, and Lucent Technologies.

The deal with Murray Hill, N.J.,-based Lucent, the world`s largest telecommunications equipment maker, expands an existing relationship under which the two companies agreed to build wireless network equipment that offers more capacity and faster speeds.

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Reuters News Service

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