24/11/2014
Derek Aberle
President, Qualcomm Incorporated
Investing in
mobile innovation
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MOBILE
Largest technology platform
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24/11/2014
Accelerating growth of 3G/4G connections
~2.8B
~5.1B
Global 3G/4G
connections as of Q3 ‘14
Global 3G/4G connections
expected by 2018
Source: GSMA Intelligence, Nov. ‘14
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User demand driving continued smartphone momentum
>8B
Cumulative smartphone
unit shipments forecast
between 2014 - 2018
Source: Gartner, Sep ‘14
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Expanding OEM base delivers greater device selection
5,800+
3G and 4G devices
launched over past
5 years
Source: CDMA Development Group and Global Mobile Suppliers Association
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Revenue growth underscores health of mobile ecosystem
2013
US $1,996 Bn
2020
US $2,897 Bn
Source: GSMA Report – “The Mobile Economy 2014”
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Retail
Energy
Education
Marketing
Consumer
Electronics
Entertainment
Computing
ECOSYSTEMS
EVOLVING
TO MOBILE
Healthcare
Automotive
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Standardized technologies vital to industry
Later entrants and downstream innovators have reduced investment risk Highest Risk
Lowest Risk
Technology contributed to standard
Inter-standards competition
Industry adoption unknown
Standard completed
Commercial deployment
Standard-based products available
Industry has adopted technology
Evolution of technology development
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Cellular standards fuel mobile innovation and growth
LTE Family
WCDMA/HSPA + Family
300
High-bandwidth
services
Peak download speeds in Mbps
•  HD/4K video streaming
•  HD audio
Increased-bandwidth
services
•  Full-length movie/
video downloads
•  MP3 downloads
•  Network gaming
•  Video downloads
Low-bandwidth services
•  Streaming audio/video
•  MMS
150
100
•  Ringtones
63
•  Short-format videos
42
28
7.2
1.8
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
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Minority of standards body members actively contribute
The top 10 patent owners represent ~99% of all the declared essential patents
22%
29.97%
Participants With ETSI
Declared Patents
(1999-2012)
Participants Without
ETSI Declared Patents
Contributor
Non-Contributor
70.03%
78%
Contributions
ETSI FRAND Declarations
(2005-2012)
(1999-2012)
Source: www.etsi.org; www.law.northwestern.edu/research-faculty/searlecenter/events/entrepreneur/documents/Gupta_standard-setting-process-3gpp.pdf
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Mobile industry total R&D expenditures (3GPP members) 12.5%
12.5%
12.5%
11.4%
$200,000
R&D expense (Millions of USD)
13.0%
12.9%
13.3%
11.2%
15%
12%
$160,000
9%
$120,000
6%
$80,000
3%
$40,000
$0
R&D as a percentage of revenue
$240,000
0%
2005
2006
2007
2008
2009
2010
2011
2012
Based on the financial data of 322 for-profit firms that participated in 3GPP standards from 2005-2013 Source: www.3gpp.org for participant information; Onesource for financial information
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R&D spend as a percentage of revenue
Top 10 Contributors to 3GPP; Average R&D spend as a percentage of revenue (2005-2013)
Average R&D as a Percentage of Revenues
25%
20%
15%
10%
5%
0%
NTT Docomo Samsung
NEC
Huawei
ZTE
Based on the financial data of top holders of patents declared as potentially essential to 3G/4G 3GPP standards to ETSI
Source: www.etsi.org for patent declaration information; Onesource for financial information
Motorola
Nokia
Ericsson
Alcatel
Qualcomm
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FRAND licensing policies balance interests of stakeholders
No single policy objective should be favored above another
IP Owners
Potential Licensees
(Contributors to Standard)
Reasonable Compensation
(Implementers of Standard)
Access to the Standard
FRAND Licensing
Policies
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Key mobile trends creating challenges for industry
Rapid growth of mobile
broadband data traffic
Connectivity expanding into
new device categories
New applications and
services 14
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24/11/2014
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