Qualcomm in 2003

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Case Details:

Case Code : BSTA070
Case Length : 27 Pages
Period : 2003
Organization : Qualcomm
Pub Date : 2003
Teaching Note :Not Available
Countries : USA
Industry : Telecommunications

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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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CDMA is the fastest growing wireless technology and dominates the 3G market today. CDMA has made phenomenal progress in the past and it is well positioned for the future. In the coming years, CDMA will expand to new markets, gain market share and, with CDMA2000 1X and 1xEV, will continue to lead in delivering the most advanced 3G services around the world.

- Perry LaForge, Executive Director of the CDG (CDMA Development Group)¹

Introduction

In early 2003, many industry and technology experts believed that the global wireless telecommunication industry was due for a turnaround. Drastic spending cutbacks in 2001 and 2002 (after massive communications network build-up during 1999 and 2000) had slowed down the industry's growth. During the two years, most wireless carriers had spent less than 20% of their revenue for network build-up, compared to about 30% during the late 1990s. However, the number of mobile subscribers had risen steadily, putting pressure on wireless carriers to upgrade their networks. Moreover, 3G² related wireless services in selected markets were gaining acceptance, prompting service providers to upgrade their networks even faster...

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Excerpts >>

1] "CDMA now has 159 million users worldwide," www.cellular.co.za, 3rd December 2002.

2] 3G is a short term for third generation wireless, and refers to near-future developments in personal and business wireless technology. 3G is expected to include capabilities and features such as enhanced multimedia (voice, data, video and remote control), usability on all popular modes (cell phones, email, paging, fax, video conferencing, and web browsing), broad bandwidth and high speed (up to 2 Mbps), routing flexibility and roaming capability throughout Europe, Japan and North America.

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