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Qualcomm unveils plan for cheaper 4G handsets

Chipset-maker Qualcomm Technologies, the world leader in 3G and next-generation mobile technologies, is readying its low-cost 4G device strategy for the Indian market.

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Chipset-maker Qualcomm Technologies, the world leader in 3G and next-generation mobile technologies, is readying its low-cost 4G device strategy for the Indian market.

Qualcomm is leading the fray with its range of multi-mode products that can be used for 2G, 3G and 4G.

That can help Aircel, Videocon and Mukesh Ambai’s Reliance, which are readying their 4G launch in India this year, to maximise demand.

Further, large shipments of 4G handsets to China and Europe may also help drive down prices. That could prove timely as India’s adoption of VoLTE (voice-over long-term evolution) is nigh, following recent government nod for VoLTE and data-based LTE services.

Renduchintala Murthy (pictured), executive vice-president of Qualcomm and co-president of Qualcomm Mobile and Computing, told DNA Money, “4G penetration is going as planned, large-scale shipments are in preparation phase.”

Qualcomm’s “penetration” is taking the form of active engagement with multiple mobile players operating in India.

For instance, Qualcomm’s MDM9600 multi-mode chipset figured prominently in LTE-3G redirection trials of Huawei and Aircel in the run-up to the latter’s planned LTE service launch by December 2012.

Videocon Mobile Services, too, is working with Qualcomm. Videocon had announced an `800-crore investment to launch LTE in Punjab as well as seven other circles this year.

Similarly, Reliance (RIL) is keen to launch its LTE services by June-July using Qualcomm’s 4G handsets and dongles.

Huawei’s Ascend P1 smartphone, built on Qualcomm’s Snapdragon S4 processor, is already available in India.

All this makes Murthy confident that 4G devices will cost less sooner than later. “We foresee LTE devices making up 30-40% of the global device market share in the next 3-4 years. This will no doubt aid in reducing the cost of 4G devices.”

To suit India’s peculiar needs in the context of its large, uneven geography, LTE will be rolled out in phases, city by city, by operators using a mix of circuit switch and VoLTE, he said. “LTE backhaul for fixed wireless terminals is thus a bigger opportunity in India.”

Unlike the quick progress in the US, Korea, Japan, China and Europe, LTE may take a good 3-5 years to gain popularity in India. 2G and 3G will find favour till 2020 as multi-mode technology still has better potential, and roaming is still difficult in LTE, due to greater number of frequency bands, as compared to 2G and 3G, he said.

Data rates for 4G will come down only after large data is consumed, as has been the case in the rest of the world.

Qualcomm is thus betting big on its 2G and 3G chipsets in India as well. It has partnered with almost every operator, across price bands and operating systems.

With smartphone sales exceeding that of computers in India, Qualcomm is positive as it has its own patent on every part of the mobile architecture.

“We have 25-30%of R&D assets in India – which amounts to around 5,000 employees. We will continue to expand our workforce and acquire, as well,” said Murthy.

@berylmenezes

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