4G future
Gilbert pointed to the fact that "in October 2005, when the complaint was issued, there were less than 50 different 3G models from only a dozen vendors in Europe and now that figure is nearer 500 different 3G models from almost 30 vendors."
Some critics and industry insiders, however, have been muttering under their breath about the EC's decision to drop the case. "Qualcomm owns the modem/connectivity space," one industry source told HEXUS, adding that the firm was "stronger and more dominant there than Intel by far."
Qualcomm currently gets a license royalty for every single 3G modem sold, and while their have been quite a few disputes over the amount Qualcomm should be paid, most notably from Nokia, the market has been deemed to be functioning properly. However, when 4G comes along, having the right 4G modem might be more important and there are less modem options available.
Currently Qualcomm has about eight direct competitors in the 3G space, but when it comes to 4G, that number drops to just two or three, with Qualcomm still picking up royalties on every modem sold. So while Qualcomm has considerable leverage now, it potentially has an even stronger future ahead.
Here's hoping the EC was right in its decision to drop charges and that Qualcomm takes the move to heart.
