Business Data Communication - Assignment- 3

Q. How does Qualcomm hold an important position in the Telecom value chain?

Qualcomm took upon the following measures to hold an important position in the Telecom value
chain:

1. CDMA Intellectual Property: Qualcomm thought CDMA had technical benefits

over GSM despite being late to market. Before CDMA was even a standard,
they were able to sign up licensees since they held the fundamental patents.
Because each of the three primary 3G operating modes relied in some way on
Qualcomm's basic CDMA intellectual property, the company persevered and
eventually rose to become one of the best-positioned firms in the tech
industry.
2. Fabless Strategy for chipsets business: Qualcomm adopted a "fabless"
strategy, concentrating on the design and development of its chips while
working with other businesses to manufacture them, in order to concentrate
only on its core competencies. As a result, Qualcomm was able to create
chipsets that allowed for high-speed data and voice transmission, GPS,
cameras, video, games, and other multimedia activities on mobile phones.
With more functionality and at competitive prices, Qualcomm was able to
shrink the size of the chipset through research and development.
3. Licensing structure: Qualcomm developed a fairly elaborate structure for its
licensing business, giving licensees the authority to market the particular
product categories in which they were interested.
4. Relationships with other stakeholders for OFDM Licensing: By concluding
royalty-bearing licensing deals with Nokia and one other major wireless
headset manufacturer, as well as with a number of smaller competitors
looking to enter the nascent 4G market, Qualcomm had created early
momentum in single mode OFDM licensing by 2009.
5. Qualcomm’s Strategic Initiatives: The adoption of 3G wireless
communications technologies globally was the main topic of this segment. FLO
TV, which debuted in 2004, was one of the primary projects. A viewer's
perception of traditional television is akin to that of FLO TV's scalable,
incredibly high visual quality. Through the support of AT&T and Verizon,
Qualcomm was able to establish a reliable distribution network for "on
demand" television content.