After more than seven years of R&D, Thousand Oaks, Calif.-based TechnoConcepts, Inc. is ready to commercialize its true software radio (TSR) technology. Toward that end, the company has inked its first licensing agreement with China Electronics Corporation (CEC), a $5-billion conglomerate under the direct supervision of the central government of China. This agreement was executed by a division general manager of CEC who also serves as a director for the Ministry of Information Industry. As a result, CEC will incorporate TSR technology as an integral component in the development of next-generation commercial and governmental wireless applications and handsets.

Although the licensing agreement is subject to approval of the United States Department of Export License Control and to regulations of the People’s Republic of China (PRC), the company does not anticipate any problems with either. The license agreement calls for TechnoConcepts to receive a technology access fee, payable as project milestones are achieved, as well as a future royalty stream based on the production of products that incorporate the TSR technology. TechnoConcepts expects to realize revenue from the license agreement in 2005, with more significant revenue anticipated beginning in 2006.

The first phase of this agreement calls for the preparation and development of specifications for TechnoConcepts’ technology to fit the requirements of CEC’s projects, which will focus on numerous wireless communications products for government and commercial applications. The company expects to see demo handsets using its TSR technology in about 18 months and three months thereafter to go into volume production.

Commenting on the announcement, Antonio Turgeon, chairman of TechnoConcepts, stated, “This agreement is a landmark event for TechnoConcepts being the first of numerous technology licensing agreements we expect to secure.” The company has developed a novel front-end for radio receivers that includes both hardware and software. Using a single chip, the TSR converts RF from the antenna to digital. The chip includes digital filtering. The digital data is then processed by the microprocessor using the software that TechnoConcepts has developed. While the initial front-end chip is based on gallium arsenide (GaAs), the company is in the process of converting it to CMOS and SiGe BiCMOS by the third quarter. The foundry partner for GaAs is Jazz Semiconductor.

Besides cellular handsets, the company is also exploring other applications like set-top boxes, walkie-talkies, first responders, as well as infrastructure applications.

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