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10/17/2006 [1]
Kent BakerQualcomm Incorporated
2006 ANSI Annual ConferenceStandardization and InnovationWashington D.C., October 11, 2006
Standardization and Innovation In Trade:Balance is the Word
10/17/2006 [2]
The Innovation Engine
Standards and Standards and Industry SpecificationsIndustry Specifications
InnovationInnovation
PatentsPatentsTrade SecretsTrade Secrets
Innovation• Investment drives innovation• Innovation creates new IP• IP enables new products or technologies• Sales create economic returns• Reinvestment of returns in R&D sustains
innovation
IPR protection• IPR laws protect ability to earn economic
returns from IP• IPR laws are critical for new market
entrants (SMEs)
Standards drive growth • Help establish interoperability of
competing products• Simplifies development by defining a
minimum set of common requirement• Helps enables business opportunities
10/17/2006 [3]
Standards Dynamics: Market DrivenInnovator / Tech Leader• Develops or Acquires IP• Risk – Huge R&D Costs
MARKET PLACE Customer• Product Choice• Risk - Sales Price
Standards Organization• Organize Stakeholders• Foster adoption by consensus• Balance all company interests• RAND Expectations
Implementer• Implements Std inProduct, Service
• Risk - costs
10/17/2006 [4]
Motorola MotorolaMotorola Motorola
Motorola
Motorola
NEC
Nokia
Nokia
Nokia Nokia NokiaNokia
Other
Samsung Samsung
Samsung
Ericsson / SEMCEricsson / SEMC Ericsson / SEMC Kyocera
LG
LG
Other Other
Other
36 Other 8 Other
PanasonicSamsung
SanyoSiemensSiemens
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
AMPS 1999 TDMA 2000 GSM 2001 GSM 2005 CDMA2000 2005 WCDMA 2005
Note: Vendors with a market share under 5% have been placed in the “Other” categorySources: Analog & TDMA – Gartner Group, 2000; CDMA, GSM & WCDMA – Strategy Analytics, 2006
Increasing Handset Competition in 3G
(Market Share)
• Large number of handset OEMs creates a competitive environment for 3G
10/17/2006 [5]
$407
$341
$290 $295
$228$202
$270$290
$436
$141
$217
$412
$367
$311$287 $272
$254$270
$100
$200
$300
$400
$500
2003Q4 2004Q1 2004Q2 2004Q3 2004Q4 2005Q1 2005Q2 2005Q3 2005Q4E
Lowest 10% Lowest end
Note: WCDMA Phones Sold per Calendar Quarter; lowest end sold in quantities of approx 50,000 units or higherNote: Data derived from licensee reports. Does not include modules.
Source: QUALCOMM Incorporated
Lowering the Cost of WCDMA (UMTS) Handsets
10/17/2006 [6]
Innovation Leadership
“I don’t consider Americans to lead innovation –but they’re the best at taking innovations to the market. Another success factor is the huge, integrated domestic market.”
Jan-Eric Peters, Editor, Die Welt(Newsweek, June 26, 2006)
10/17/2006 [7]
Kent BakerVP, IPR Policy & ComplianceQualcomm IncorporatedSan Diego, California
Thank You
