Motorola 2005 Annual Report Download - page 48

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MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
talk over cellular (""PoC'') technology for 44 wireless carriers in 33 countries and territories in 2005. Based
on IMS technology, Motorola's PoC solution lays the foundation for further ""Push-To'' applications.
Networks also introduced its MOTOwi4 product portfolio for unlicensed spectrum and WiMAX broadband
solutions Ì designed to meet the different needs of operators for lower-cost delivery of data rich
multimedia applications and services.
‚Connected Home Solutions: The Connected Home Solutions business is the world's leading provider of
digital video set-top boxes and cable modems. In 2005, Motorola shipped its 40 millionth digital video set-
top box and its 30 millionth cable modem, both significant milestones. We shipped over 6.4 million set-top
boxes in the year, almost half of which were high-definition TV (""HDTV'') capable, and 9 million cable
modems, of which 1.6 million were voice-over-IP (""VoIP'') capable.
Motorola also entered into joint ventures with Comcast for the development and licensing of next-
generation conditional access technologies. We began implementing a multi-year contract to build Verizon's
digital video network infrastructure and provide advanced consumer products, including the first digital set-
top boxes to incorporate home media networking. We were named a set-top box supplier for AT&T's IPTV
deployment, our digital video delivery platform was selected by VTR in Chile for the launch of digital cable
services, and we launched a digital terrestrial television (""DTT'') set-top box for use in Europe.
During 2005, Motorola was awarded the National Medal of Technology for its outstanding contributions to
America's technological innovation and competitiveness over its more than 75-year history. The National Medal of
Technology, established in 1980 by an act of Congress, is the highest honor awarded by the President to America's
leading innovators. The award recognizes that since its founding in 1928, Motorola has stood on the cutting edge
of innovation in areas such as two-way radios, cellular communication, paging, space flight communication,
semiconductors and integrated, digital enhanced networks. As a result, the Company has helped establish entirely
new industries and driven the phenomenal growth of mobile communications.
Looking Forward
In 2006, we will build upon our 2005 achievements with our continued commitment to quality and our
unrelenting focus on innovation. We will continue to pursue profitable market share growth across all our
businesses.
We are focused on our seamless mobility strategy. Seamless mobility recognizes that the boundaries between
work, home, entertainment and leisure continue to dissolve. As we move between different environments, devices
and networks, seamless mobility will deliver fluid experiences across the home, vehicle, office and beyond.
Motorola is a thought leader on digital convergence.
As we develop seamless mobility, we remain committed to delivering compelling products in all our businesses.
We will continue to build on the success of the MOTORAZR with ultra thin products, including the introduction
of the QWERTY design known as the Q, in 2006. We will continue to invest in next-generation, mission-critical
data, video and security, and mesh technology to enable us to offer the most compelling products to public-safety
agencies and other government customers. We will continue to build our enterprise business by offering products
that enable the mobile enterprise. We will continue to develop and offer next-generation infrastructure networks
that enable the mobile Internet and lead us to a seamless world.
2006 will not be without challenges. We conduct our business in highly-competitive markets, facing new and
established competitors. We also face technological and other industry challenges in developing seamless mobility
products. Full digital convergence will require technological advancements and significant investment in research
and development. The research and development of new, technologically advanced product is a complex process
requiring high levels of innovations, as well as accurate anticipation of technological and market trends. During the
year, we will continue to focus on improving the quality of our products and on enhancing our supply chain to
ensure that we can meet customer demand and improve efficiency. However, we believe that despite these
challenges, our seamless mobility strategy and our compelling products will result in a successful 2006.