Motorola Leadership on Spectrum Management Policy Provides Optimism in 2001

New Product Offerings, Alliance Announcements Underscore

Strong CTIA and CeBIT Showings



Apr 03, 2001, 01:00 ET from Motorola, Inc.

    SCHAUMBURG, Ill., April 3 /PRNewswire/ -- With a string of innovative new
 products on display, significant business alliances in hand and the leadership
 of its CEO evident in the industry-wide debate on spectrum, Motorola, Inc.
 (NYSE:   MOT) emerged from the recent 2001 Cellular Telecommunications and
 Internet Association (CTIA) trade show in Las Vegas (March 20-22), and CeBIT,
 the world's largest annual telecommunications and information technology show,
 in Hanover, Germany (March 22-28), with renewed optimism for the remainder of
 the year.
     "We expected a strong showing at CTIA and CeBIT," said Christopher B.
 Galvin, Motorola Chairman and CEO, "but the overwhelming response to our new
 products and technologies surpassed anything we anticipated.  The market knows
 that advanced GPRS, J2ME and 1xEV-DV technologies are on the horizon and that
 Motorola holds the key to many of these exciting opportunities.  We continue
 to make smart products that will help people lead better lives."
 
     Galvin Issues Call to Action for Spectrum Management Reform
     In a keynote appearance at CTIA, Galvin called for a fundamental
 reexamination of the process used to award access to the airwaves for new
 telecommunications services.  Assuming a leadership role on one of the key
 areas of public policy affecting the wireless industry, Galvin challenged
 carriers, manufacturers, governments and others, to establish an urgent and
 on-going dialogue on how existing policies on the licensing of spectrum for 3G
 and other wireless services, could be revamped to spur growth, innovation, and
 the proliferation of new services at affordable prices to consumers.
     The current system requires telecom carriers to invest billions of dollars
 up front to gain access to vital markets.  Galvin said diverting substantial
 capital in this manner is detrimental to the overall U.S. economy and stalls
 critical investment in innovation and new technologies.  "When you estimate
 what the equipment and system sales would be for 3G over the next three years,
 what's been paid so far represents what could be imagined as a 100 percent tax
 on all of the equipment, estimated by Wall Street analysts on how much might
 be sold."
     Galvin noted that spectrum auctions were created with good intentions --
 solving certain problems and giving transparency to the system, but that now,
 "the net impact has not been totally optimal for all constituencies.
 Therefore, we need to go back and re-determine how we go about writing those
 rules and effecting them."
     In his remarks, Galvin reasserted what the industry has long argued --
 that the U.S. government has not allocated enough spectrum.  "We have the need
 for significantly greater amounts of spectrum because of the opportunities
 that are going to take place to bring more telecommunications services,
 tailored to people in many different ways: at home, in the car, on the person,
 and among work teams."  Galvin also pushed for a spectrum management policy
 that would ensure it is allocated to the kinds of services that will benefit
 society as well as the industry.
     "Anytime there is the opportunity to innovate when new technologies are
 created, rules and regulations need to be modified," Galvin said.
 "Government, the industry, and experts and associations need to come together
 and find a modified plan that accomplishes a variety of goals ... lower the
 amounts paid for spectrum long term, allow investment to be robust, and give
 governments a potential of collecting enormous amounts of revenue for
 themselves."
     Galvin emphasized that this must be a collective undertaking and must not
 prejudge the outcome.  However, he noted there have been a number of ideas put
 forward in the U.S. and Europe for seeing that the proceeds from auctions are
 reinvested into telecom services and increasing the availability of spectrum.
 
     New Products
     Recognized as an innovator in telecommunications, Motorola was first to
 market with GPRS handsets in 2000, and among its cadre of important
 technologies on display at both shows, none shone more brightly than the
 company's complete portfolio of GPRS wireless devices.  Motorola is the only
 company currently shipping GPRS handsets to customers.
     GPRS technology enables a rapid and constant connection to the Internet,
 providing the capability for "always on" access.  In addition, it offers more
 efficient and cost-effective Internet access because data transmission is sent
 via packets and carriers can charge according to data sent or retrieved versus
 the airtime incurred.  The Motorola models on display included the
 Timeport(TM) 7389i (Timeport 260 in EMEA), Timeport 280 and V.series(TM) 66,
 the Talkabout (R) 192g, the Accompli(TM) 008, a combined PDA and cell phone
 device, and the Talkabout (R) 192G.
     At CTIA 2001, Motorola introduced a new category of customizable mobile
 phones that will change the way people use wireless devices by combining
 wireless communications and computing power via Java(TM) 2 Platform, Micro
 Edition (J2ME)(TM) technology.  New customization is made possible by the J2ME
 standard, which has evolved from Java and is designed to work on small, low-
 powered handheld devices such as wireless phones, pagers and personal digital
 assistants.
     A key attribute to incorporating J2ME into a wireless device is that it
 enables consumers to upgrade the applications on a device continually once it
 has been purchased.  Since J2ME is an industry standard, the same software and
 applications can work on a variety of different devices.  Motorola provided
 two J2ME technology-enabled multiple-communication handsets and a variety of
 software applications at the show.
     Motorola offered the world a glimpse of a first-of-its-kind 3G-network
 demonstration through an interactive racing video game.  Motorola's 1xEV-DV
 solution enables real-time voice, data and multimedia services on existing
 cdma2000 networks, allowing end users to browse the Internet from a personal
 computer or access e-mail while mobile.  Though the standard for 1xEV-DV
 technology has not been agreed upon by infrastructure vendors and wireless
 operators for CDMA technology, the 1xEV-DV demonstration is a historic first
 step in showing the commercial viability of further refinements to CDMA
 specifications that are expected to yield significant increases in data
 throughput.
 
     Alliances
     In another J2ME initiative, Motorola and Sprint PCS (NYSE:   PCS) announced
 a collaboration to conduct lab trials.  Sprint PCS is the first nationwide
 North American CDMA (Code Division Multiple Access) carrier to perform an in-
 house lab trial, which will enable both companies to begin testing the ability
 of customers to download applications on a wireless phone.
     Additionally, Motorola, Domino's Pizza and Verizon Wireless announced that
 they are participating in one of the first market trials of mobile commerce.
 The trial will enable all three companies to assess consumer adoption and
 usage of "mobile commerce," also known as mobile shopping or m-commerce.  M-
 commerce provides consumers with the ability to order goods and services
 quickly and easily via the Internet using a wireless device.  The two-month
 "Pizzacast" trial is currently taking place in Las Vegas with consumers
 ordering pizzas using their wireless phones.
     Also at CTIA, Motorola announced an agreement with MSN and Arch Wireless
 to provide consumers access to MSN's popular MSN Hotmail and MSN Messenger
 communications services, as well as content from MSN Mobile on Motorola's
 wireless two-way messaging device, the Talkabout(TM) model T900 personal
 interactive communicator.
 
     CeBIT
     At the world's largest information technology and telecommunications trade
 show, CeBIT, in Hanover, Germany, applications for work and play were also on
 display -- ranging from a wireless application for the mobile office, to a
 wireless version of the globally popular "Who Wants To Be A Millionaire" game.
     In partnership with Ericsson and Siemens Information and Communication
 Mobile (IC Mobile), Motorola announced plans to develop an industry initiative
 that will define a universal, mobile games platform, using existing and
 emerging standards.  With this initiative, the three companies aim to help
 mobile operators offer a broad selection of games content and provide
 developers with a standardized platform.  Mobile consumers will benefit
 through a rich, interactive, multiplayer games experience.
     Motorola also drew considerable interest through its range of concept
 products, designed by Motorola's engineers to incorporate new and unique ways
 to communicate and access data and information.  These concepts showed how
 Motorola is bringing the future to life today by building smart solutions for
 our everyday lives.
 
     About Motorola
     Motorola, Inc. (NYSE:   MOT) is a global leader in providing integrated
 communications solutions and embedded electronics solutions.  Sales in 2000
 were $37.6 billion.  More information can be found at Motorola's company Web
 site: http://www.motorola.com .
 
 

SOURCE Motorola, Inc.
    SCHAUMBURG, Ill., April 3 /PRNewswire/ -- With a string of innovative new
 products on display, significant business alliances in hand and the leadership
 of its CEO evident in the industry-wide debate on spectrum, Motorola, Inc.
 (NYSE:   MOT) emerged from the recent 2001 Cellular Telecommunications and
 Internet Association (CTIA) trade show in Las Vegas (March 20-22), and CeBIT,
 the world's largest annual telecommunications and information technology show,
 in Hanover, Germany (March 22-28), with renewed optimism for the remainder of
 the year.
     "We expected a strong showing at CTIA and CeBIT," said Christopher B.
 Galvin, Motorola Chairman and CEO, "but the overwhelming response to our new
 products and technologies surpassed anything we anticipated.  The market knows
 that advanced GPRS, J2ME and 1xEV-DV technologies are on the horizon and that
 Motorola holds the key to many of these exciting opportunities.  We continue
 to make smart products that will help people lead better lives."
 
     Galvin Issues Call to Action for Spectrum Management Reform
     In a keynote appearance at CTIA, Galvin called for a fundamental
 reexamination of the process used to award access to the airwaves for new
 telecommunications services.  Assuming a leadership role on one of the key
 areas of public policy affecting the wireless industry, Galvin challenged
 carriers, manufacturers, governments and others, to establish an urgent and
 on-going dialogue on how existing policies on the licensing of spectrum for 3G
 and other wireless services, could be revamped to spur growth, innovation, and
 the proliferation of new services at affordable prices to consumers.
     The current system requires telecom carriers to invest billions of dollars
 up front to gain access to vital markets.  Galvin said diverting substantial
 capital in this manner is detrimental to the overall U.S. economy and stalls
 critical investment in innovation and new technologies.  "When you estimate
 what the equipment and system sales would be for 3G over the next three years,
 what's been paid so far represents what could be imagined as a 100 percent tax
 on all of the equipment, estimated by Wall Street analysts on how much might
 be sold."
     Galvin noted that spectrum auctions were created with good intentions --
 solving certain problems and giving transparency to the system, but that now,
 "the net impact has not been totally optimal for all constituencies.
 Therefore, we need to go back and re-determine how we go about writing those
 rules and effecting them."
     In his remarks, Galvin reasserted what the industry has long argued --
 that the U.S. government has not allocated enough spectrum.  "We have the need
 for significantly greater amounts of spectrum because of the opportunities
 that are going to take place to bring more telecommunications services,
 tailored to people in many different ways: at home, in the car, on the person,
 and among work teams."  Galvin also pushed for a spectrum management policy
 that would ensure it is allocated to the kinds of services that will benefit
 society as well as the industry.
     "Anytime there is the opportunity to innovate when new technologies are
 created, rules and regulations need to be modified," Galvin said.
 "Government, the industry, and experts and associations need to come together
 and find a modified plan that accomplishes a variety of goals ... lower the
 amounts paid for spectrum long term, allow investment to be robust, and give
 governments a potential of collecting enormous amounts of revenue for
 themselves."
     Galvin emphasized that this must be a collective undertaking and must not
 prejudge the outcome.  However, he noted there have been a number of ideas put
 forward in the U.S. and Europe for seeing that the proceeds from auctions are
 reinvested into telecom services and increasing the availability of spectrum.
 
     New Products
     Recognized as an innovator in telecommunications, Motorola was first to
 market with GPRS handsets in 2000, and among its cadre of important
 technologies on display at both shows, none shone more brightly than the
 company's complete portfolio of GPRS wireless devices.  Motorola is the only
 company currently shipping GPRS handsets to customers.
     GPRS technology enables a rapid and constant connection to the Internet,
 providing the capability for "always on" access.  In addition, it offers more
 efficient and cost-effective Internet access because data transmission is sent
 via packets and carriers can charge according to data sent or retrieved versus
 the airtime incurred.  The Motorola models on display included the
 Timeport(TM) 7389i (Timeport 260 in EMEA), Timeport 280 and V.series(TM) 66,
 the Talkabout (R) 192g, the Accompli(TM) 008, a combined PDA and cell phone
 device, and the Talkabout (R) 192G.
     At CTIA 2001, Motorola introduced a new category of customizable mobile
 phones that will change the way people use wireless devices by combining
 wireless communications and computing power via Java(TM) 2 Platform, Micro
 Edition (J2ME)(TM) technology.  New customization is made possible by the J2ME
 standard, which has evolved from Java and is designed to work on small, low-
 powered handheld devices such as wireless phones, pagers and personal digital
 assistants.
     A key attribute to incorporating J2ME into a wireless device is that it
 enables consumers to upgrade the applications on a device continually once it
 has been purchased.  Since J2ME is an industry standard, the same software and
 applications can work on a variety of different devices.  Motorola provided
 two J2ME technology-enabled multiple-communication handsets and a variety of
 software applications at the show.
     Motorola offered the world a glimpse of a first-of-its-kind 3G-network
 demonstration through an interactive racing video game.  Motorola's 1xEV-DV
 solution enables real-time voice, data and multimedia services on existing
 cdma2000 networks, allowing end users to browse the Internet from a personal
 computer or access e-mail while mobile.  Though the standard for 1xEV-DV
 technology has not been agreed upon by infrastructure vendors and wireless
 operators for CDMA technology, the 1xEV-DV demonstration is a historic first
 step in showing the commercial viability of further refinements to CDMA
 specifications that are expected to yield significant increases in data
 throughput.
 
     Alliances
     In another J2ME initiative, Motorola and Sprint PCS (NYSE:   PCS) announced
 a collaboration to conduct lab trials.  Sprint PCS is the first nationwide
 North American CDMA (Code Division Multiple Access) carrier to perform an in-
 house lab trial, which will enable both companies to begin testing the ability
 of customers to download applications on a wireless phone.
     Additionally, Motorola, Domino's Pizza and Verizon Wireless announced that
 they are participating in one of the first market trials of mobile commerce.
 The trial will enable all three companies to assess consumer adoption and
 usage of "mobile commerce," also known as mobile shopping or m-commerce.  M-
 commerce provides consumers with the ability to order goods and services
 quickly and easily via the Internet using a wireless device.  The two-month
 "Pizzacast" trial is currently taking place in Las Vegas with consumers
 ordering pizzas using their wireless phones.
     Also at CTIA, Motorola announced an agreement with MSN and Arch Wireless
 to provide consumers access to MSN's popular MSN Hotmail and MSN Messenger
 communications services, as well as content from MSN Mobile on Motorola's
 wireless two-way messaging device, the Talkabout(TM) model T900 personal
 interactive communicator.
 
     CeBIT
     At the world's largest information technology and telecommunications trade
 show, CeBIT, in Hanover, Germany, applications for work and play were also on
 display -- ranging from a wireless application for the mobile office, to a
 wireless version of the globally popular "Who Wants To Be A Millionaire" game.
     In partnership with Ericsson and Siemens Information and Communication
 Mobile (IC Mobile), Motorola announced plans to develop an industry initiative
 that will define a universal, mobile games platform, using existing and
 emerging standards.  With this initiative, the three companies aim to help
 mobile operators offer a broad selection of games content and provide
 developers with a standardized platform.  Mobile consumers will benefit
 through a rich, interactive, multiplayer games experience.
     Motorola also drew considerable interest through its range of concept
 products, designed by Motorola's engineers to incorporate new and unique ways
 to communicate and access data and information.  These concepts showed how
 Motorola is bringing the future to life today by building smart solutions for
 our everyday lives.
 
     About Motorola
     Motorola, Inc. (NYSE:   MOT) is a global leader in providing integrated
 communications solutions and embedded electronics solutions.  Sales in 2000
 were $37.6 billion.  More information can be found at Motorola's company Web
 site: http://www.motorola.com .
 
 SOURCE  Motorola, Inc.

RELATED LINKS

http://www.motorola.com