Qualcomm Inc. has announced the dissolution of Wingcast LLC, a joint venture it created in October 2000 with Ford Motor Co., that provided in-vehicle telematics services using Qualcomm's Code Division Multiple Access (CDMA) digital wireless technology.
Ford has been the sole funding contributor to Wingcast since May 2001. Prior to that, Qualcomm had invested $25 million in exchange for an approximate 15% equity stake in Wingcast.
Qualcomm had previously recorded approximately $14 million in losses related to its equity interest in Wingcast, reducing the investment to approximately $11 million. As a result, Qualcomm expects to write off up to $11 million on its remaining investment in the third fiscal quarter of this year.
"CDMA technology provides the best platform for high-speed data access for telematics services," said Qualcomm Wireless and Internet Group president Paul E. Jacobs. "Qualcomm is continuing to work with CDMA licensees, carriers and automobile manufacturers on telematics solutions that will leverage advanced wireless data services being deployed today."
Jacobs added that Qualcomm will continue to benefit from its license to use some of the intellectual property developed by Wingcast.
"Ford Motor Company is still committed to the objective of providing telematics services in its vehicles, including the use of CDMA technology, but we do not believe it is necessary to have equity interest in a telematics service provider in order to meet that goal," said Douglas R. VanDagens, director of wireless mobility at Ford.