Qualcomm in 2003
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Please note:
This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.
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Case Details: |
Price: |
| Case Code |
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BSTA070 |
Electronic Format: Rs.
500;
Courier (within India):Rs. 25 Extra
Themes- |
| Case Length |
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27 Pages |
| Period |
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2003 |
| Organization |
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Qualcomm |
| Pub Date |
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2003 |
| Teaching Note |
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Not Available |
| Countries
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USA |
| Industry |
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Telecommunications |
Abstract:
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California based Qualcomm holds a very distinctive position
in the global wireless telecommunication market. It owns majority intellectual
property rights to the CDMA (Code Division Multiple Access) wireless standard.
Qualcomm licensed this technology to major network equipment and cell phone
makers, and collected licensing fees and royalties whenever any CDMA based
products were sold. Compare this to the other prevailing standard, GSM (Global
System for Mobile Communications), whose intellectual property rights were not
majority owned by any single company. Hence, the wireless market was
interestingly poised: Qualcomm and CDMA on one end, and a consortium of major
players like Nokia on the other.
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(Though Nokia designed phones for the CDMA standard, it was heavily committed to GSM. The same was the case for other major European players like Ericsson and Siemens.) Of about 1.3 billion cell phone subscribers in the world at the end of 2002, about 847 million were based on the GSM, while 159 million were CDMA based.
GSM now dominates markets in Europe, Asia, Africa, Latin America, etc, while CDMA has a commanding market share in the North American market and parts of Asia. Since it was founded in 1985, Qualcomm has actively promoted the CDMA technology as a better alternative to the GSM and has been fast increasing its market share in larger markets like China and India where users are increasingly favouring the CDMA.
From 2000 onwards, the battle between these two standards has extended into the market for third generation wireless services that promises multimedia and Internet on cell phones. In this case, we trace the evolution of these two wireless standards and how each is competitively positioned for the new generation of wireless services.
Contents:
Keywords:
Qualcomm, Wireless technologies, CDMA (code division multiple access) technologies, GSM (global system for mobile communications) technologies, TDMA (time division/demand multiple access), 3G technology, Telecommunications industry, Globalisation, General Packet Radio Service, Licensing, CDMA2000, Cellular technology, Mobile telephony, Motorola, Nokia
Qualcomm in 2003
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