Nextel strikes exclusive licensing deal with Qualcomm

Nextel and Qualcomm have entered into an exclusive licensing agreement for further development and deployment of Qualcomm’s Qchat software. Because the agreement builds upon Nextel’s existing and continuing agreements with Motorola, the carrier plans to work with both vendors to develop a Direct Connect product for global wireless network operators using CDMA platforms.

“The agreement means that Qualcomm will not be selling QChat to other carriers in the U.S.,” said Jeremy James, senior director of marketing for Qualcomm Internet Services.

James maintains that QChat is Qualcomm’s only push-to-talk technology solution for 3G CDMA and that Nextel will be the only carrier in the U.S. to which it will offer the solution. Internationally, the two companies will be able to target carriers migrating toward cdma2000. However, he said it is possible that Qualcomm will make QChat compliant with WCDMA down the road.

While iDEN-based Nextel has yet to commit to its third-generation migration path, developing Direct Connect on CDMA platforms--and will be interoperable with the iDEN-based service--could be an indication the carrier plans to go down the CDMA path.

Motorola will integrate the overall infrastructure solution for use in CDMA networks and develop specific enhancements to CDMA2000 to ensure it is iDEN-compatible. It also will have marketing rights for the enhanced Direct Connect product outside of the U.S.

All three companies hope combining their efforts--Qualcomm’s CDMA-based QChat software, Motorola’s infrastructure and Nextel’s Direct Connect expertise--will help create a global community of Direct Connect users. The idea is that one customer in Boston will be able to instantly communicate with another in Beijing.

These agreements grant Nextel certain exclusive license rights in North America and several other international markets. In addition, the collaboration is expected to enable Direct Connect push-to-talk functionality over wireless CDMA networks via voice-over-IP architecture, which will be designed to enable subscribers around the world to talk at the push of a button.