Alcatel, ST sign agreement to develop GSM/GPRS chipsets

Feb. 14, 2002 – Gevena, Switzerland – STMicroelectronics and Alcatel have signed a new cooperation agreement for the development of future GSM/GPRS chipsets for mobile phones and other wireless connectivity applications.

Under the terms of the agreement, Alcatel is transferring its team of mobile phone IC designers to ST. ST will get access to the GSM/GPRS know-how and IP developed by this group. The resulting chipsets will be available for the open market. This co-operation also includes a multi-year supply agreement associated with 2.5G chipsets.

This cooperation between ST and Alcatel will result in cost-optimized solutions for the basic ‘engine’ of the mobile phone, allowing Alcatel to concentrate more on elements, which now differentiate mobile phones – software, product integration, user interface design, and styling, according to the companies.

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