ASSIGNMENT 3 - Qualcomm
ASSIGNMENT 3 - Qualcomm
ASSIGNMENT 3 - Qualcomm
Qualcomm, best known for its CDMA technology, is a wireless technology leader and one of the world's most
valuable semiconductor companies. It makes most of its revenue from selling chipsets and licencing patents to
handset manufacturers and infrastructure firms, with its services division and strategic efforts contributing just a tiny
portion. The Value Chain in Traditional Telecom End-users, handset manufacturers, chipset makers, infrastructure
providers, network operators, and application developers are often included in the Telecom value chain.
Qualcomm's main strength was technology development and chipset/software design, and the company, together
with Texas Instruments, was a significant participant in the chipset manufacturing industry. Qualcomm was an
integrated systems supplier, allowing phone manufacturers to concentrate on other aspects that set them apart.
Qualcomm plays a vital role in the telecommunications ecosystem.
Qualcomm primarily provided contract research and development services to the wireless telecommunication
industry. Qualcomm held an important position in the Telecom value chain by dominating the following segments:
Qualcomm CDMA Technologies (the chipset business), Qualcomm Technology Licensing (the licensing business),
Qualcomm Wireless and Internet (the services business), and Qualcomm Strategic Initiatives.
Licence
For the right to utilise its intellectual property in the production and sale of CDMA devices, Qualcomm paid one-time
licencing fees and recurring royalty payments. Even if a handset maker used processors from a Qualcomm certified
chip supplier, it still needed its own Qualcomm subscriber device licence. Qualcomm has charged about the same
standard royalty rates across all three 3G CDMA-based technologies in the past (CDMA, WCDMA and TD-SCDMA).
Qualcomm began collecting royalties on all 3G device shipments worldwide when its licence agreement with Nokia
expired in July 2008.