QUALCOMM, Inc. (QCOM) Is Looking At New System Called “MuLTEfire”


QUALCOMM, Inc. (NASDAQ:QCOM) seems to be betting on its new system, known as MuLTEfire, to provide performance with improved capacity, as well as, the range like LTE. The company’s confidence is due to the easy way of deploying the device like Wi-Fi without hurting anyone, who is using Wi-Fi. The chip maker has also expressed its confidence about the efficiency of the device and claimed that even nearby Wi-Fi users would witness an improved experience.

Shifting Network

If QUALCOMM, Inc. (NASDAQ:QCOM)’s MuLTEfire succeeds, it might drive towards shifting the network to LTE for unlicensed airwaves. The company’s dominant position in the mobile-device silicon segment will provide the authority to launch MuLTEfire to scale.

Currently, unlicensed LTE is being used by network operators, who also have licensed frequencies. Their objective is to utilize the unlicensed spectrum for downloading data and keep other traffic on a cellular band. That included voice calls too. However, the new technology will create a network based on LTE with the unlicensed spectrum. That would enable cable firms, businesses, and hotspot operators to deploy LTE rather than Wi-Fi without any license. The LTE will be more useful for venues such as sports stadium for easy deployment.

Doubts

However, there are some doubts about QUALCOMM, Inc. (NASDAQ:QCOM)’s MuLTEfire. For instance, Current Analysis’ analyst, Peter Jarich, expressed doubts saying said that Wi-Fi has already established itself as cheap and beat LTE over ubiquitous radios in mobile gadgets. He said that it would take some time for the new LTE to show up in devices. Therefore, he failed to understand why anyone should select LTE over Wi-Fi.

Reports indicated that analysts were of the view that some private businesses might try to deploy a fully unlicensed LTE network. However, the analysts doubt whether the private businesses will do it immediately. They pointed out that Wi-Fi for enterprise is so mature that prevents companies to go in for a fresh technology since it is meant for carriers.

Advantage

However, some of the analysts’ believe that LTE does score over Wi-Fi. That is because LTE is standardized and advanced mechanisms for things such as policy-based management, subscriber authentication, and coordinating. The analysts said these features would make it simpler to establish a service-provider like a network with the help of MuLTEfire compared to the Wi-Fi.

Despite different opinions, QUALCOMM, Inc. (NASDAQ:QCOM)’s MuLTEfire will get the attention since emerging service providers have shown interest. Phil Marshall, an analyst from Tolaga Research, said that is because they wanted to use it in unlicensed spectrum. Similarly, cable operators, who could not get spectrum licenses, will be interested to deploy the device to supplement their services. He said that an ecosystem needs to be developed.

Viraj Shah

Viraj Shah has completed M.Com (Finance) and is currently pursuing his CFP. He tracks US markets along with other global markets like India very closely. He is very passionate about stocks, real estate, and technology. He also believes that money can always be made in the market.

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