SAN DIEGO and BASKING RIDGE, N.J., July 28 /PRNewswire-FirstCall/ -- Qualcomm Incorporated (NASDAQ: QCOM) and Verizon Wireless today announced an agreement to form a joint venture to provide machine-to-machine (M2M) wireless communications and smart services offerings across a wide variety of market segments, including healthcare, manufacturing, utilities, distribution and consumer products. Capitalizing on the growth of M2M and smart services, the joint venture (name still to be determined), which will be equally owned by Qualcomm and Verizon Wireless, will be well positioned to provide a single source for end-to-end M2M solutions.
Smart services are the new services and business models enabled by M2M capabilities. For example, smart grid technology enables utilities to wirelessly connect to their grid assets, such as circuit breakers, transformers and other sub-station equipment. This wireless monitoring capability allows them to develop interactive utility networks that are more intelligent, resilient, reliable and self-balancing.
"The Verizon Wireless vision for bringing the benefits of 'everything connected' to the marketplace started with the introduction of the open development business and the selection of LTE technology for our 4G network," said Anthony Lewis, vice president of open development at Verizon Wireless. "We understand that no single company will be able to provide every aspect of the new M2M ecosystem on its own. This distinctive partnership with Qualcomm allows us to swiftly build on the strengths of each company's M2M strategy. The JV's focus on unlimited innovation will enable the production of next-generation products and services that will release the full power and potential of our network for customers."
The joint venture will be led by M2M industry leader Steve Pazol, who previously served as vice president of Global Smart Services at Qualcomm. Qualcomm has provided a variety of M2M solutions that have added "always-on" mobile connectivity to assets, providing access to network intelligence and benefiting enterprise customers.
"M2M is a rapidly growing market projected by some analysts to reach more than 85 million connections globally by 2012," Pazol said. "The next five years will be a significant period of innovation in M2M. Qualcomm and Verizon expect to create a company focused in evolving niche aftermarket strategies to embedded product standardization strategies, driving down costs, increasing performance expectations and enabling impactful new business models."
The new joint venture will leverage Qualcomm's advanced connectivity technologies and Verizon Wireless' expertise and simplified device certification process. The joint venture will deliver seamless, fully integrated M2M communication with global connectivity. Key new capabilities will include cloud computing solutions to automate device provisioning, and to track, monitor and manage assets. Custom white label applications for OEM customers, productized applications for end-use markets, new diagnostic tools for monitoring network health and device performance, data aggregation services, back office integrations and other professional services required to deliver whole solutions also will be provided.
Other details related to the joint venture are not being disclosed.
Qualcomm and Verizon Wireless will host a press conference at 8 a.m. PDT on Tuesday, July 28, 2009, which can be viewed live at www.qualcomm.com/press. A recording of the press conference also will be available shortly after the event.
About Verizon Wireless
Verizon Wireless operates the nation's most reliable and largest wireless voice and data network, serving more than 87.7 million customers. Headquartered in Basking Ridge, N.J., with more than 87,000 employees nationwide, Verizon Wireless is a joint venture of Verizon Communications (NYSE: VZ) and Vodafone (NYSE: VOD) (LSE: VOD) . For more information, visit www.verizonwireless.com. To preview and request broadcast-quality video footage and high-resolution stills of Verizon Wireless operations, log on to the Verizon Wireless Multimedia Library at www.verizonwireless.com/multimedia.
Qualcomm Incorporated (NASDAQ: QCOM) is a leader in developing and delivering innovative digital wireless communications products and services based on CDMA and other advanced technologies. Headquartered in San Diego, Calif., Qualcomm is included in the S&P 100 Index, the S&P 500 Index and is a 2009 FORTUNE 500((R)) company. For more information, please visit www.qualcomm.com.
Qualcomm is a registered trademark of Qualcomm Incorporated. All other trademarks are the property of their respective owners.
Regarding Forward Looking Statements
This news release contains forward-looking statements that are subject to risks, uncertainties and assumptions. If such risks or uncertainties materialize or such assumptions prove incorrect, the anticipated results could differ materially from those expressed or implied by such forward-looking statements and assumptions. All statements other than statements of historical fact are statements that could be deemed forward-looking statements, including: the expected benefits of the joint venture and the technologies, products and services to be developed and offered by the joint venture; the expected growth of the smart services market; the anticipated plans, strategies and objectives of the joint venture; plans and anticipated capabilities regarding product and service integration; and any other statements of expectation or belief. The risks and uncertainties that may affect these forward-looking statements include: the possibility that expected benefits of the joint venture and service and product integration may not materialize as expected; product development and service integration risks; competitive responses by other industry participants; the effect of changing technologies; and other risks that are described more fully in Qualcomm's SEC reports, including the report on Form 10-K for the year ended September 28, 2008, and most recent Form 10-Q.