Seeking Alpha
Profile| Send Message|
( followers)  

Two blogs I read carried some coverage on the LTE IPR agreement that I wrote about here.

GigaOM pointed out that there will be a push-pull effect with the IP developers on one side and the operators and handset vendors on the other. But, it is perhaps unfair to characterize Qualcomm's (NASDAQ:QCOM) IP position as the cause of 'pain and suffering'. I can see why other companies are seething at Qualcomm’s demands – the company takes a large chunk of their margins. But then, it makes sense from Qualcomm’s perspective and even for the telecom industry as such.
If there is one US company that is thriving and very successfully holding its own amidst the dominant European presence in the mobile space, it is Qualcomm. It is the high margin IP-based revenue that has allowed the company to get here. The company diverts this revenue back into state-of-the-art research that advances mobile communications. At least that is its business model and that is what the others are trying to break through the legal battles.

Dean Bubley also had some good points that I concur with. The IP-rich companies are ominous in their absence. Besides, it is a good way of positioning LTE as the fore-runner in the 4G race. Like he says, it will be interesting to see how the WiMAX world reacts to this.

Talking of WiMAX, did anyone notice Nextwave (OTC:WAVE) in this list? What is a company that put its weight behind WiMAX not long ago doing here? Does it say something about the future of WiMAX or the winner in the 4G race?

Disclosure: Long Qualcomm at the time of writing

Source: Qualcomm Thrives Amidst the Dominant European Mobile Presence