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Computer makers, carriers embrace embedded chips

Just when you thought your new Wi-Fi-enabled laptop was nifty, along comes a bevy of new laptops embedded with PC cards and chips that support wireless broadband Internet access via third-generation carrier networks. Several announcements touted the latest collaborations between carriers and computer manufacturers to embed wireless technology in laptops.

ThinkPad notebook computers will have built-in support for Cingular Wireless L.L.C.’s BroadbandConnect network, according to plans from Cingular and computer manufacturer Lenovo.

The preconfigured notebooks are expected to be available starting in the second quarter. Lenovo will integrate Cingular’s wireless wide area network technology into the ThinkPads, allowing users to access the carrier’s high-speed network without additional hardware, a separate PC card or a nearby Wi-Fi hot spot.

“Cingular is working closely with Lenovo from a research and development standpoint to wirelessly enable its products with a technology that is based on a global 3G standard,” said Jeff Bradley, vice president of business data services for Cingular. “We look forward to jointly offering to Lenovo notebook customer’s wireless broadband access on both a domestic and an international scale.”

Cingular’s UMTS network recently launched in 16 major markets, and the company says it is committed to extending the service to most major markets by the end of this year. Where the high-speed network is not available, notebook users will be able to access Cingular’s EDGE service. ThinkPad users also will have wireless access in countries where Cingular has data roaming agreements. Sony also offers a laptop with the ability to access Cingular’s EDGE network.

Lenovo also announced plans for a ThinkPad notebook for Verizon Wireless’ BroadbandAccess network, as have laptop makers Hewlett-Packard Co. and Dell Inc.

Qualcomm Inc. said its chips are being used by Sierra Wireless Inc., maker of the MC5720 EV-DO PCI Express Mini Cards, which will be embedded in HP’s new Compaq nc6140 Notebook PC.

“Wireless wide area network embedded chips represent a very large and strategic development for Qualcomm,” said Kristin Taylor, senior director of Enterprise Business Development for Qualcomm. “Our key focus is developing partnerships with the computing industry.”

Sierra Wireless said its W-WAN PC card is also preconfigured to work on Sprint Nextel Corp.’s EV-DO network.

News of Sierra’s PC card deals helped boost its stock by 14 percent to $13.19 per share, and the wireless modem maker upped its fourth-quarter expectations to $37 million in revenue.

Sierra has been in the doldrums during the past year due to its failure in the smart-phone business and its sluggish wireless modem sales. However, the company said it may be turning the corner due to increased customer demand.

“We concluded that an update to our previously issued guidance was prudent given that our current revenue expectation is significantly stronger than originally expected,” said Jason Cohenour, the company’s president and chief executive officer. “We are pleased and encouraged by the strong demand we saw for our new and existing products during the quarter. We remain very focused on driving continued growth in our core business and on returning to profitability and industry leadership.”

For the quarter, Sierra previously expected revenues of $32 million, but increased that to $37 million. The company also expects better net income as well as positive cash flow.

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