Qualcomm’s Gobi: An Antidote (Not a Cure-All) for Cellular Modem Value Chain Ills

• Posted: Friday, April 18, 2008
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• Author: pradhana
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• Filed under: 3G dan 4G, Mobile Business

With the spread of 3G cellular networks, connected notebooks with built-in cellular modems have not met early adoption forecasts. Part of the issue has been high broadband data pricing but that does not explain why business customers, who make up the initial target market, have not been more receptive to the convenience of embedded connectivity on mobile broadband wide area networks.

Much of the resistance to purchasing notebooks with embedded connectivity can be mitigated by connectivity that is agnostic to the underlying network protocols. Qualcomm has solved this problem with Gobi, a multi-band GSM and CDMA chipset for use in cellular modems. In a new Research Brief, ABI Research principal analysts Dan Shey and Phil Solis highlight the value of Gobi to the mobile value chain and analyze the implications.

According to Shey, “Gobi is giving the embedded notebook market the shot in the arm it needs to continue on a double-digit growth path and capture a greater share of the 100+ million notebook shipments through 2013.”

Gobi promises customers choice in connecting to either GSM or CDMA networks anywhere in the world. But Gobi isn’t the only solution for broadband connectivity and will not by itself solve all the value chain problems. Operator choice may not exist if the fewer operators serving business customers influence and limit the connectivity choices provided by the notebook OEMs. Alternatives exist, such as subsidized PC Cards and USB modems. As cellular broadband prices drop, will consumers need CDMA coverage, given their mobility needs and the broad coverage available from GSM networks?

Says Solis, “Gobi is a great solution, but relationship-building and marketing will have to be important elements in Qualcomm’s strategy to gain favor with suppliers and end-users.” [ABI Research]

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