Why We Dont Have Good Handsets In Cdma

[prakashkadam 1]

folks,

read the following newsitem from HT and see how much Qualcomm takes from us as a price for IPR, you will understand that why there aren't enough good handset in CDMA domain.

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HT August 22, 2006.

QUALCOMM THE pioneer of code division multiple access (CDMA) technology is richer by about Rs 3,312 crore through the royalty revenues earned from the 32 million CDMA mobile subscribers in India.

According to leading merchant banker Morgan Stanley, revenues of San Diego-based Qualcomm, from a low-end handset of $50 (Rs 2,300) are as high as $22.2 (Rs. 1021), which adds to a whooping 44.4 per cent.

The Morgan Stanley analysis comes at a time when South Asia’s largest CDMA operator has demanded rationalisation of Qualcomm Tax that is creating severe imbalances in the CDMA ecosystem.

According to Qualcomm’s earlier statement, low-end handsets comprise of 75 per cent of total CDMA handsets sold in India. The research report also reveals that that the gross revenue of Qualcomm from high-end handsets is 41.4 per cent of a handset costing $100 (Rs 4,600), ie $41.4 (Rs 1,904).

The Morgan Stanley report states: “By now Indian operators would have paid over $720 million (Rs 3,312 crore) to Qualcomm towards royalty revenues over the last four years, secured from the current 32 million CDMA subscriber base in the country.” The Indian CDMA operators with the exception of Tata Teleservices have been up in arms against the high royalties levied by Qualcomm and have been lobbying with industry bodies on the same.

Anil Ambani, chairman of Anil Dhirubhai Ambani Group (ADAG) in a recent analyst call had stated, “CDMA handset ecosystem has got major challenges and the Qualcomm approach in no way helps us to further bring down the affordability index for millions of customers in India.” He had also pointed out that Qualcomm continues to be a big challenge for Indian CDMA Operators, whether it is in royalties, in chipsets or in their ability to deliver value low cost solutions to millions of Indian customers.

Qualcomm’s royalty practices have come under scanner in most of the developing countries.

Brazilian CDMA operator VIVO announced its plans to exit CDMA and enter GSM.

The world’s largest handset manufacturer, Nokia, has already announced its complete exit from manufacturing CDMA handsets.

The golden goose Qualcomm’s royalty revenue from India amounts to Rs 3,312 cr according to Morgan Stanley Its revenue from a low-end handset of Rs 2,300 are as high as Rs 1,021 Low-end handsets comprise of 75 per cent of handsets sold in India Qualcomm’s revenue from high-end handsets costing Rs 4,600 is Rs

[KingofKalyan 0]

That is the only reason.. our Chote Sahab(ADA)... is planning to move on GSM !

[amtrag 20]

Right.

And i am sure that the licenese fee for GSM technology is much lower than this.

[petar 15]

aree... the royalty cannot be the only reason.

People are ready to pay in india. Besides i wonder why havent LG bothered to launch some better phones in Indian cdma market. It has many phones with MP3 ?& bluetooth in USA.

Its just matter of time. Indian consumer is ready to pay now.

[Sadikk 301]

People are ready to pay in india. Besides i wonder why havent LG bothered to launch some better phones in Indian cdma market. It has many phones with MP3 ?& bluetooth in USA.

Qualcomm dont charge any royalty in US, Whereas they charge only 2% in china, We paying hefty 11% though.

guys go through why nokia-sanyo tie-up didn't worked for making CDMA handset. u'll get the whole idea.

[prakashkadam 1]

People are ready to pay in india. Besides i wonder why havent LG bothered to launch some better phones in Indian cdma market. It has many phones with MP3 ?& bluetooth in USA.

Qualcomm dont charge any royalty in US, Whereas they charge only 2% in china, We paying hefty 11% though.

guys go through why nokia-sanyo tie-up didn't worked for making CDMA handset. u'll get the whole idea.

It seems Qualcomm is on suicidal trend. They should understand that everybody in the CDMA business environment needs to get benefiited for a healthy progress.

I feel sad, if CDMA fails because of this attitude, CDMA is definately better tech that GSM.

[kshah 452]

Same will happen even with WCDMA. Once patents are in US hand this is bound to happen. GSM is a society, that is the reason why costs are low. CDMA and WCDMA (though it is extension of GSM) are closely held technologies.

Worldwide, many companies including telstra of australia, Vivo of brazil and all US companies except Verizon has switched to GSM.

3G and 4G are going to be dead once wi-fi and wi-max are there in market. Data capabilities are used only in urban and semi urban areas not in rural, hence for network ISP's it will be easy to provide Wi-fi or Wi-max at cheaper prices. Even in coming days, smart phones will be more popular due to lowering rates and open standards (Unlike WAP).

Ofcourse this is what I think. May be wrong

[tanveer 59]

But sooner or later Qualcomm are going to realise that they are going to lose if they carry on like this.

That is of course if they have long term plans.

[anujit 0]

The reason we dont have high end phones is because Reliance doesnt think too much of them.

There are terrific handsets in the CDMA market. Check out the Blackberrys, Treos Samsung 7xx series and more. In fact Blackberrys and Treos are always released in CDMA versions first and GSM as an afterthought!

Reliance considers itself a low end service provider and doesnt believe in getting high phones to the indian market. When I was buying my 6255 I talked to a number of shop keepers and they were telling me that they were really hesitant to keep this model in stock since Reliance had never sold a high end model before and they were unsure how it would do.

And I dont blame them really. Reliance isnt known for its technology strengths like data services etc. Ask any non Reliance user and they'll tell you what the think of Reliance's brand equity.

Then theres the problem of phone locking to the service provider. While US companies also do this, they provide significant discounts to the consumer (and recover the amount over 2-3 years). This makes it ok to haver operator locking in the US. In India the scale of economies being so much different, plus other factors (we all know the 501 fiasco) makes it difficult for them to do that.

Royalties have really nothing to do with it (or very little if at all).

[prakashkadam 1]

The reason we dont have high end phones is because Reliance doesnt think too much of them.

There are terrific handsets in the CDMA market. Check out the Blackberrys, Treos Samsung 7xx series and more. In fact Blackberrys and Treos are always released in CDMA versions first and GSM as an afterthought!

Reliance considers itself a low end service provider and doesnt believe in getting high phones to the indian market. When I was buying my 6255 I talked to a number of shop keepers and they were telling me that they were really hesitant to keep this model in stock since Reliance had never sold a high end model before and they were unsure how it would do.

And I dont blame them really. Reliance isnt known for its technology strengths like data services etc. Ask any non Reliance user and they'll tell you what the think of Reliance's brand equity.

Then theres the problem of phone locking to the service provider. While US companies also do this, they provide significant discounts to the consumer (and recover the amount over 2-3 years). This makes it ok to haver operator locking in the US. In India the scale of economies being so much different, plus other factors (we all know the 501 fiasco) makes it difficult for them to do that.

Royalties have really nothing to do with it (or very little if at all).

No my friend royalties have certainly created problems for handset manufacturers with lowering their operating margins. And I am sure, for the very same reason Nokia is backing out of CDMA phone market.

LG is there because, in india they are just changing the covers of the existing handsets.

[anujit 0]

It makes no sense that they have no royalties in USA which is the richest market. And heavy royalties in the poorest market. Are they trying to strangle themselves.

And go to Treo or Blackberry's or even Samsung USA's site. See the kind of phones they have on offer. Most of them are CDMA.

You certainly have the best phones on CDMA. It's just that they aren't sold in India.

[rassi 0]

Not Getting Reliance Blackberry 8830 In Market , NO One Aware Of Handset Model To Be Launched In Market , Reliance has lauched just A Cheap Handset 8703 & They Are Now Silent To Finish The Stocks Of This Handsets , Customare Care Peoples Depend sOn Media To Get The Lauch date Of Blackberry 8830 & So Are We & Reliance Webworld s

Give Any Info Regarding market launch For The same

[kshah 452]

I think for next few months till Portability and 3G policies are finalized in CDMA high end phones will be restricted. Now wait for EVDO phones in CDMA and may be GSM in reliance.