1 / 16

Qualcomm´s Multi-lemma

Qualcomm´s Multi-lemma. 1) Introduction to the highly systemic wireless industry 2) Challenges that Qualcomm faces Within the Cellular industry Qualcomm faces the challenge of a new standard - WCDMA.

demi
Download Presentation

Qualcomm´s Multi-lemma

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Qualcomm´s Multi-lemma • 1) Introduction to the highly systemic wireless industry • 2) Challenges that Qualcomm faces • Within the Cellular industry Qualcomm faces the challenge of a new standard - WCDMA. • Within the larger Wireless Industry Qualcomm faces the challenge of another new standard – WI-FI (802.11) • 3) Wireless data opportunities

  2. Cellular System Components Overview Mobile Phone Air Interface & Frequency Antenna & Base Station T1, T3 lines Backend Equipment – Switching, Billing etc.

  3. Cellular Technologies • Analog – Uses the complete frequency for one call. • Time Division Multiple Access (TDMA) – Divides the frequency into time slices, e.g. US-TDMA and GSM. • Analogous to many pairs of people speaking with pauses that are so small that no one notices the delay. • Code Division Multiple Access (CDMA) – Call signals are transmitted • simultaneously, but using different orthogonal codes. • Analogous to many pairs of people speaking simultaneously in mutually exclusive languages. • Advantages of CDMA • 10-15 Times the Capacity Improvement • Lower power usages => longer battery life and less over heating issues • Geared for Data

  4. Cellular Systemic Industry – 2G CDMA (20% of World Market) GSM (70% of World Market) Technology Chips & Software Stack Phone Equipment Service Providers QCOM – 5% royalties Nokia, Ericsson, Siemens, etc. Nokia, Ericsson, Siemens,etc. QCOM – 95%, MOT, LSI, Samsung etc. Samsung, LG, Sanyo, Sony-Eric, Motorola. Nokia, Ericsson, Motorola etc. LU, NT, Eric etc. Nokia, Ericsson, Siemens, Alcatel etc. Verizon, Sprint PCS, South Korea etc. Nextel, Cingular, T-Mobile, Europe etc.

  5. Mobile Market GSM market CDMA

  6. Cellular Systemic Industry – 2.5/3G GSM (GPRS – 40Kbits/s EDGE-70Kbits/s) CDMA-2000 (1X- 256Kbits/s EVDO-2.4 Mbits/s) WCDMA 2.4 Mbits/sec 2005 Technology Chips & Software Stack Phone Equipment Service Providers QCOM – 5% royalties Nokia, Eric, Siemens, QCOM- 5% royalties. Nokia, Ericsson, Siemens etc. Nokia, Eric, Siemens etc. QCOM – 95%, MOT, LSI, Samsung etc. TI, Nokia, QCOM, LSI, Samsung etc. Samsung, LG, Sanyo, Sony-Eric, Motorola. Samsung, LG, Nokia, Sony-Eric, MOT etc. Nokia, Ericsson, Motorola etc. LU, NT, Eric etc. LU, NT, Eric, Nokia, Siemens, Alcatel etc. Nokia, Eric, Siemens, Alcatel, Motorola. Some parts of Europe Verizon, Sprint PCS, Nextel, South Korea Cingular, T-Mobile, ATT, Europe etc. China, India, Japan, South America etc.

  7. Qualcomm`s current business √ ? • Qcom - 95% of the market • Scale (partnered with IBM) • Nokia/Ericsson have an advantage √ √ • 5% royalties – guaranteed • There are more patent holders. How will they be compensated? * 2002 Annual Report

  8. WCDMA Forecast

  9. Pros and Cons supporting WCDMA Advantages • WCDMA will be the only technology accepted in Europe (license) • Upside - Royalty revenues from WCDMA up to $10 Billion • Early adoption of WCDMA implies early increases in royalty streams Disadvantages • QCOM less likely to be a major player in the chip market – cannibalize existing CDMA 2000 chip sales growth • Potential adopters of CDMA2000 will adopt a wait and see approach. • High uncertainty regarding demand (see previous slide)

  10. Qualcomm Strategy in WCDMA Qualcomm is assisting in the early development and adoption of WCDMA • This will cost Qualcomm significant dollars in R&D, specifically in optimizing WCDMA systems. • Partnering with a major chip manufacturer to achieve scale. Hedging the bets • Qualcomm is also rigorously pushing CDMA2000, and also its solution of GSM/1x to convert existing non-European GSM providers to CDMA2000

  11. Wireless Convergence Cellular (3G) Laptop WI-FI (802.11/.15)

  12. Wireless Data User Segment Analysis Wireless Access Wireless Access Corporate Access Corporate Access Commercial Services Communication Communication

  13. Qualcomm WI-FI Strategy • Qualcomm may incorporate WI-FI into its chips. • Reasons : • WI-FI can never directly compete with 3G cellular because • Low Coverage • No Mobility • Less security • WI-FI can add the following benefits to Qualcomm’s chips • Cheaper last mile solution for service provider • Higher data rates without mobility • Anything that grows the demand for data services is good.

  14. The Wireless Data Revolution • Wireless Data development phases: • Person to Person • Person to Machine • Machine to Machine • Cellular Data Strengths: • Mobile • DSL like Data rate • Cellular Data Weaknesses: • Input/Output Constraints • Lack of the “Killer Application”

  15. Conclusion • The wireless industry is a very systemic industry, composed of various other systemic chains within chains. • However, it is in everyone’s interest to grow consumer demand for wireless, specially wireless data, and this is what in the end drives the overall strategy of all the wireless companies, cellular and non-cellular. • The upcoming wireless data boom shall create great opportunities for the prepared entrepreneur.

More Related