TI Executive Expects Mobile Entertainment to Fuel 3G Growth

11/22/2004 - Mobile entertainment services will propel 3G to become a high-volume, high-revenue industry, Doug Rasor, Texas Instruments Incorporated (TI) (NYSE: TXN) Vice President and Manager for Worldwide Strategic Marketing said in a keynote address at the 3G World Congress today. Custom ring tones, 3D games, multi-megapixel cameras, video and digital TV - these are a few of the cool applications fueling the growth of 3G cellular technology.

In his presentation Rasor explained the significant opportunity 3G represents for delivering a fun, personal, and entertaining multimedia experience to the mobile phone. Rasor also noted that 3G momentum is being driven by the demand for mobile entertainment and productivity. To access Rasor´s keynote presentation online, please visit www.ti.com/corp/docs/investor/speeches/2004/3gcongress/index.shtml.

Rasor explained that one of the core trends driving the multimedia experience is the convergence of the wireless and consumer electronics markets. "We must miniaturize the living room entertainment experience in size, but not in performance," Rasor said. "Hence it's critical that we work together on open platforms that allow maximum potential for innovation. We need to take the high-end electronics experience consumers have come to expect from their state-of-the-art digital cameras, camcorders, and game consoles, and integrate that experience into the cell phone. Meeting consumers' expectations for a secure, state-of-the-art mobile entertainment experience will be a strong step toward making trendy mobile features 'must-have,' revenue-generating services."

Current 3G handsets now feature high-resolution color displays, integrated video cameras, audio and video content streaming, internet access at broadband speeds, location-based services, and multi-user 3D gaming. And these are only the beginning. "From the convergence of wireless and consumer electronics markets, we'll see tremendous innovation, much of which cannot be fathomed today," Rasor said.

Rasor explained that the intersection of these two hot markets should present big opportunities for everyone in the value chain. "For operators it will mean more traffic on their networks and more revenue. For handset manufacturers it means being able to offer their customers handsets that are differentiated and customized according to their needs," said Rasor. "For TI, it already means taking our strong position in both wireless and consumer electronics and channeling that into delivering the most advanced 3G solutions and the most compelling multimedia applications. As more such advances in applications appear, the potential 3G barriers consumers once faced, including high-priced, bulky handsets with short battery life, will continue to dissipate and focus the buying decisions more on the compelling services and content that 3G delivers."

Closing his address, Rasor reminded the audience of executives that the combination of the essential - reliable communications -- with the desired -- cool applications -- will become increasingly important as 3G evolves. "No longer just a device to make and receive calls, 3G is turning the cell phone into a universal remote control, allowing our on-the-go society access to entertainment and productivity with just a click on their cell phone," Rasor said. "Indeed, these exciting services will be the cornerstone of accelerating 3G uptake, driving increased average revenue per user for mobile operators and creating opportunity for every part of the wireless value chain as we deliver a multimedia experience on the cell phone that equals a consumer electronics experience," said Rasor.

About Rasor
With more than 20 years´ experience in the semiconductor business, Doug Rasor is currently a TI vice president and manager of worldwide strategic marketing. As part of this role, Rasor scouts, pioneers and incubates TI´s entrance into new high-growth markets that leverage TI´s real-time signal processing core competency. Examples of successful businesses that have been bootstrapped through Rasor´s strategic marketing organization are TI´s chipset businesses for MP3 players, digital still cameras, digital audio, wireless smartphones/PDAs, DSL modems, and more.

Related TI News at 3G World Congress
In separate news issued Tuesday, November 16, TI and COMMIT jointly announced that together they are driving 3G wireless innovation in Asia, providing the Chinese wireless industry with a flexible TD-SCDMA chipset solution easily customized for supporting complex 3G applications ("Texas Instruments and COMMIT Enable Next Generation Chipset Solutions for China 3G Marketplace"). The TI and COMMIT solution incorporates TI´s OMAPTM multimedia processors and digital signal processing (DSP) technology. During this week´s 3G World Congress, TI and COMMIT have been demonstrating a 3G TD-SCDMA prototype handset, which includes TI´s OMAP processor technology. To view the announcement, please visit www.ti.com/wirelesspressroom.

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