Motorola 2000 Annual Report Download - page 18

16 MOTOROLA, INC.
first-generation digital products. It also took a number of significant cost-reduction actions and entered into
agreements to outsource a portion of Motorola’s cellular phone and two-way pager production. PCS began the
transition of its low-tier wireless telephones to platform products and is continuing that transition in mid- and
high-tier products in 2001. This enables it to better leverage technical resources and maximize manufacturing
and supply-chain efficiencies. As a result, it can introduce products more quickly with greater reuse of compo-
nents and software – key elements in our cost-reduction strategy.
At the same time, the PCS leadership talent has been strengthened significantly with external hires and
internal promotions. PCS is also improving customer relationships through dedicated, cross-functional account
management teams. It is also introducing exciting new products with appealing designs and improved user
interfaces. Motorola is the leader in shipping wireless telephones with General Packet Radio Service (GPRS).
It provides high-speed access to Internet-based content through a handheld device in Global System for Mobile
(GSM) Communications systems.
The Global Telecom Solutions Sector is supplying the next generation of wireless infrastructure systems
as well as expansions of current systems. Sales grew 19% in 2000, while operating profit margins improved
to 13% of sales. GTSS supplied the world’s first four GPRS commercial networks. GPRS is a transitional, or
2.5G, step to third-generation (3G) systems. The sector also has enabled network operators in North America
to offer packet data services using iDEN technology, and in Japan, it has supplied nationwide voice and data
networks using CDMA IS-95B. GTSS also announced 3G contracts with several customers throughout the world.
The Broadband Communications Sector was formed after completion of the merger with General Instrument
in January 2000. Its sales in 2000 grew 35%, and operating profit margins improved to 16%. BCS is the leading
end-to-end solutions provider to the broadband access market, with cable modems, telephony home gateways,
hybrid-fiber coaxial network systems and digital set-top terminals. Besides decoding digital cable programming,
these terminals also enable advanced TV services like video-on-demand, e-mail and home shopping. The
intelligent home of the future could have multiple TVs, phones and personal computers offering high-speed
Internet access, telephony ser vices and advanced interactive video simultaneously, all connected to home
gateways from Motorola.
The Motorola i2000 world phone allows users to make and
receive calls from more than 70 countries, making it the ultimate
communications tool for the jet-setting executive.
The Motorola V Series phone, model 60c combines
form and function. Intuitive technology, from voice activation
to Web browsing, makes it easy to use.
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