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Issue #2003 - 06 (February 2003)
(Updated Feb. 20, 2003)


Intel Moves into Cellular Phone Processor Space - TTPCom Helps Intel Out with GPS

Intel Announces PXA800F

In a move to bring its special blend of high-volume manufacturing and standardized technology to the cellular phone market, Intel on Thursday shed more light on its new PXA800F processor. The chipmaker is hoping the PXA800F, which contains a 312-MHz XScale processor core and 4 Mbytes of flash memory integrated on the same chip, will pave the way for moderately priced cell phones that offer a combination of voice communication and Internet access.

This could prove a challenge to the world's leading provider of flash memory, which is looking for ways to offset slowing growth in the PC industry. While Intel has begun shipping the PXA800F in small volumes, it has yet to identify any major cell-phone makers that are using the new processor. The company says the PXA800F will begin shipping in larger volumes during the second half of the year and appear in handsets by year's end. 

The PXA800F is part of Intel's Personal Internet Client Architecture, the company's blueprint for designing wireless handheld devices that include camera, color screen, games, and other capabilities in addition to voice communications. These functions will appeal to wireless carriers, including AT&T, Cingular, Sprint PCS, and Verizon, all of which are looking for new ways to keep their customers on the line. "We're talking about bringing more minutes for them," says Dennis Sheehan, director of marketing for Intel's personal client architecture group. 

The processor also is being aimed at mobile-phone makers developing products for high-speed wireless networks, such as GPRS (General Pack Radio Service) networks. The PXA800F is most likely to be used in cell phones priced from $100 to $250. Intel's PXA250 and PXA260 processor lines will continue to be used in more advanced, and expensive, handheld devices that run the PocketPC or Palm OS operating systems. 

Intel has yet to reveal any A-list phone makers on board with its wireless-Internet-on-a-chip technology. It says it has manufacturing agreements with a number of smaller players worldwide, including Taiwan's Wistron Corp. and Korea's Maxon Telecom Co. 

There's a lot riding on the success of Intel's integrated wireless chip design, says one analyst. If the PXA800F is successful in keeping manufacturing costs down and creating a design standard for the cell phone market, it could bring more cell-phone makers into the market, says Warren Wilson, director of Summit Strategies' mobile and wireless business solutions practice. 

"A lot of carriers pay subsidies to get their services out on the market," Wilson says. "If you drive the prices down and performance up, you make it easier to build on top of the chip, and you allow someone to come into the market that doesn't need the deep pockets of a Nokia." 

Wilson isn't concerned with Intel's lack of original equipment maker partners for the chip. "That signifies this is a work in progress," he says. "But given Intel's track record in other markets, it's safe to say they'll be a player in this market." 

TTPCom Helps Intel Out with GPS

Cambridge, UK, 13 February 2003 - TTPCom Ltd (LSE:TTC) announced a significant milestone today in its work with Intel Corporation for the development of GSM/GPRS processors, with the launch of the Intel® PXA800F cellular processor. Intel has incorporated key TTPCom GSM/GPRS technology, allowing the company to build its position in the competitive wireless market by quickly broadening its portfolio of wireless products. The two companies have been working closely for over 2 years to develop the hardware and validate the system technology. 

The Intel PXA800F cellular processor is an integrated communications and applications processor that is the first product to fully integrate the GSM/GPRS baseband solution with a high performance Intel® XScale technology-based processor and Intel® OnChip Flash memory. The Intel PXA800F cellular processor offers mobile device manufacturers a true alternative to established silicon platforms in the wireless sector and is fully compatible with TTPCom's industry-standard GSM/GPRS protocol software, used by over 40 mobile device manufacturers worldwide. The combination of Intel hardware with TTPCom software provides a solid platform for the development of low power, cost-effective wireless devices capable of running rich data applications. In particular the Intel PXA800F cellular processor will support the increasingly sophisticated functionality, such as high-end JavaÔ capability, multimedia messaging service, digital cameras and dual colour displays, which are becoming standard features in mainstream handsets. 

Tony Milbourn, Managing Director at TTPCom, stated "I am thrilled to see the launch of Intel's new cellular processor based on TTPCom's GSM/GPRS technology. The Intel solution offers a level of processing power which will allow the provision of exciting new services and applications, and will take current handsets to a new level." He continued, "the GPRS technology around which the processor is built is a class 12, quad-band platform, which will enable users to take full advantage of available GPRS networks no matter where they are in the world."

Hans Geyer Intel vice president and general manager of Intel's PCA Components Group said, "TTPCom is a respected supplier to the mobile communications industry and its protocol software has been licensed by leading handset manufacturers worldwide. We're seeing an increase in the range and complexity of mainstream mobile devices and together, Intel and TTPCom are well placed to deliver the state of the art technology, and the time to market advantage that manufacturers need to compete effectively in this challenging environment."

A demonstration of the Intel platform running TTPCom's Wireless Graphics Engine will be shown on TTPCom's stand A3, Hall 1 at the 3GSM World Congress in Cannes, France.

Note to editors - TTPCom technology
The TTPCom technology supplied to Intel comprised the following:

  • System and circuit designs for the advanced GSM/GPRS baseband processor, supplied as VHDL source code
  • physical layer software, controlling the hardware functions of the terminal.
    The Intel PXA800F cellular processor is fully compatible with TTPCom's higher level GSM/GPRS protocol software and application suites and when combined these form a complete solution for manufacturers to develop low power consumption, cost effective GSM/GPRS mobile devices.

TTPCom's GSM/GPRS protocol software is a stable platform which has received type approval in over 100 products used on over 70 networks worldwide. The platform is compatible with emerging operating systems, thereby facilitating the development of sophisticated smart phones. In the applications space, TTPCom's Ajar platform, launched on January 22nd, enables the fast development of customised mobile phones through downloadable applications and services and the creation of branded user interfaces.

Source: Press Release from TTP.Com and Intel

For more information: http://www.informationweek.com/story/IWK20030213S0003 and http://www.ttpcom.com

MobileInfo Comments and Advisory: This is a major move in the cellular processor market. Intel is moving into TI's territory. With much bigger resources, Intel can be a threat to TI. We feel that it will lead to increased competition, lower prices, faster smart phones - good news for the consumers and the enterprise market. TI will have learn to live with lower margins. Overall, a good news indeed.

Note: This news release may contain forward-looking statements within the meaning of section 27A of the Securities Act of 1933 and section 21E of Securities Exchange act of 1934 in USA. Similar provisions exist in other countries. There is no assurance that the stipulated plans of vendors will be implemented. MobileInfo does not warrant the authenticity of the information. Readers should take appropriate caution in developing plans utilizing these products, services and technology architectures.  All trademarks used in this summary are the property of their respective owners.

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