Failing to make strong inroads into Europe with its second-generation CDMA offering, Qualcomm Inc. wants to write a different story for UMTS technology.
Within a two-week span, the San Diego-based vendor penned two deals that underscore its intention to be a mainstream player in the UMTS sweepstakes in Europe. The company first acquired software company Trigenix, a mobile user interface company. In a significant follow-up, the CDMA proprietor announced that Siemens AG agreed to use Qualcomm’s chipset for its UMTS handsets. Siemens ranks as the third- or fourth-largest handset maker in the world.
The announcement signified that major European carriers that sell Siemens handsets will provide a market for Qualcomm’s products.
The deal with Siemens involves multimedia handsets based on Qualcomm’s Mobile Station Modem portfolio. As a supplier to carriers in Europe, Siemens will have Qualcomm’s chipsets in the handsets it offers to carriers such as T-Mobile International, 02, Vodafone Group plc, Orange plc and Deutsche Telecom.
“The carriers are well aware of our technologies,” said Luis Pineda, vice president of marketing and product management at Qualcomm CDMA Technologies.
The decision to adopt Qualcomm’s UMTS chipsets was not inspired by that product alone. The company over the years has put in motion a strategy to make its products compatible with European products. It rolled out chips with multi-mode capabilities, including a GSM/GPRS/CDMA chipset. It also offers a chipset that integrates all 2G, 2.5G and 3G protocols into one.
“We have the highest level of integration on one chip with W-CDMA, GSM/GPRS as well as multimedia services like video, graphic, audio, security, position location-all in one,” Pineda said.
“Qualcomm’s W-CDMA product portfolio provides us with the ability to create multiple products across varied market segments while reducing development costs,” said Thorsten Heins, a member of the board of Siemens Communications.
Qualcomm’s decision to buy Trigenix also fits into the strategy to interface its products with European GSM-based products. The U.K. company’s technology will be combined with Qualcomm’s BREW technology to make wireless devices in Europe interface with Qualcomm’s CDMA product offerings.
“Qualcomm’s acquisition of Trigenix marks a significant next step in the company’s efforts to bring enhanced 3G wireless data services to Europe and illustrates our resolve to support wireless operators, device manufacturers and developers on the Continent,” said Peggy Johnson, president of Qualcomm Internet Services.
Qualcomm sees the Siemens deal as the beginning of other engagements in Europe, and it is working to make its UMTS as encompassing as possible. “We’ve developed a long-term (UMTS) strategy that expands our portfolio to include EDGE, HSDPA and Enhanced Uplink-providing our customers with solutions that achieve their short- and long-term goals,” said Sanjay K. Jha, president of Qualcomm CDMA Technologies.
Qualcomm said up to 24 handset vendors have agreed to use its W-CDMA chipsets.
As part of its UMTS offering, its future chip will embody EDGE, HSDPA and what is known as Enhanced Uplink, or EUL. The last two are enhanced versions of UMTS, the former for downlink to the phones and the latter for uplink from the caller’s receiver to the network.
Siemens plans to unveil its product next year. Qualcomm said its HSDPA product, MSM 6275, will be available in December and its EUL, known as MSM6280, will be unveiled in the second half of next year.
