Its BroadCom, Its Verizon, Its a goal!

Thursday, July 19, 2007

BroadCom also scored another goal today in the game against QualComm. They have signed a licensing agreement with Verizon, who have agreed to pay $6 per EV-DO hand-set they sell with a maximum of $40 million per quarter. In return, Verizon have also agreed to drop all efforts to stall the ITC ban including the request for Presidential veto.

From Verizon's point of view, it comes as a relief since this would at least give them some quality phones to compete against Cingular and iPhone. They were hoping that QualComm would be able to resolve it with BroadCom, but that was not to be. From BroadCom's side too, it is a welcome development. They have, in some sense, done the service provider a favor and would now have some camaraderie with them for the future. This is doubly sweet for them as Verizon with its CDMA network shares a strong bond with QualComm. With Verizon giving up its part in the fight, this is definitely perceived as a blow for QualComm.

This being said, QualComm issued a brief statement 'welcoming' the move while avowing to continue their fight for a Presidential veto, of course without one of their primary allies. Also, clearly, the war will continue since there are other carriers in question.

And yes, don't be surprised if Sprint signs a deal tomorrow giving BroadCom more traction in the U.S. market. However, these deals are more of a make-shift arrangement and some business goodwill until a deal inked by QualComm and BroadCom.

Posted by Vijay Nagarajan at 11:25 PM  


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