05/11/15
Nov. 5, 2015
Don Rosenberg Remarks
GSMA-George Washington
University
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Mobile innovations lower costs and improve
performance
Consumer cost of data per megabyte relative to data consumption versus data speed
$/megabyte Mbps 8 300 6 200 4 100 2 0 2004 2006 2008 2010 2012 0 2014 Sources: Boston Consulting Group, “The mobile revolution: How mobile technologies drive a trillion dollar impact” (2015)
Note: Data speed indicates the maximum downlink speed, not average observed speeds. The average observed speeds depend on many factors, including infrastructure, subscriber density,
and device hardware and software.
Qualcomm Technologies, Inc.
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05/11/15
Few participants invest in R&D
No. of participating firms in 3GPP
•  Minority invest actively in R&D -- Fewer than half, ~45% of participants ever submitted any technical
contribution.
•  Among those that did contribute their technology to standards, the distribution is highly skewed with the top
2% entities responsible for >60% of all contributions.
300
266
250
200
150
100
55
50
46
30
26
30
100-300
300-1,000
21
9
9
5,000-10,000
>10,000
0
0
1-10
10-50
50-150
1,000-5,000
No. of technical contributions (2005-2013)
Sources: Baron and Gupta, “Unpacking 3GPP standards”, forthcoming, Journal of Economic and Management Strategy (2016), based on data from www.3gpp.org
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The mobile wireless industry – development stages
Standardized technology is developed
Standards-compliant products are developed
Interoperable networks are deployed
Highest risk
Medium risk
Low risk
Inter-standards
competition
Market adoption
unknown
Market adoption unknown
Markets adopt technology
Investment
Risk
Sources: Gupta, “Technology standards and competition in the mobile wireless industry”, GMU Law Review (2015)
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Qualcomm Technologies, Inc.
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05/11/15
R&D risks in core technologies enable major capex
investments
Mobile value chain R&D and capex-to-revenue ratios
Percentage of revenue Technology-centric
30 Product-centric
Network-centric
2 20 10 23 3 11 12 3 5 4 Component manufacturing OEMs 0 Technology and component innovaHon Telecom infrastructure 15 <21
Capex R&D Mobile network operators Sources: Boston Consulting Group, “The mobile revolution: How mobile technologies drive a trillion dollar impact” (2015) (based on data from Ovum; Gartner)
Note: These figures come from pure players and represent a five-year average of R&D and capex-to-revenue ratios from 2009 through 2013.
1Mobile network operators typically do not report R&D spending separately from other expenses.
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Qualcomm Technologies, Inc.
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