How efficient are cell phone providers

Mobile operator: added value per bit

With the growing possibilities of mobile radio technology and mobile devices, new business fields and models have developed in the recent past. Last but not least, the focus is more and more on the user, while increasing the added value per bit is slowly becoming more important than reducing costs in mobile data traffic, says Dan Novak, Vice President Global Marketing at Qualcomm. "That is also the reason why services are so much in focus," he says. Last but not least, Qualcomm sees itself as a supporter who helps other companies to implement new technologies and realize offers.

As an example of a new type of business model, Novak names Amazon's Kindle with the content provision via Sprint's 3G network. "The fact that the customer is not entering into a business relationship with the mobile operator is quite unique," he explains. The Zeebo console, which was launched in Brazil in May, brings games to customers in emerging markets in a new way - directly via mobile communications. In both cases Qualcomm cuts in as the provider of the technological reception solution. This also applies to many offers of computers or netbooks in connection with mobile broadband contracts, since 3G modules from Qualcomm are often built into the devices.

In addition to selling its own chips and software solutions, the licensing of intellectual property is an important source of income for Qualcomm. In order to play an important role in both areas in the mobile online future, investments will be made accordingly. "We continue to increase our research and development spending even in times of crisis," says Novak. In 2008, these expenditures were over $ 2.2 billion, representing more than 20 percent of total revenues. (pte / mje)