Qualcomm 2012 Annual Report Download - page 11

our patent portfolio includes technologies that contribute to commercially successful product implementations. Generally, we have licensed
substantially all of our relevant patents to our CDMA subscriber and infrastructure equipment licensees.
These 3G CDMA versions (CDMA2000, WCDMA and TD-SCDMA) require separate implementations that are not interchangeable. While
the fundamental core technologies are derived from CDMA and, in addition to other features and functionality, are covered by our patents, their
specifications each require unique infrastructure products, network design, air interface protocols and management. However, subscriber
roaming amongst systems using different air interfaces is made possible through multimode wireless subscriber devices.
Fourth Generation. Release 10 of 3GPP’s Long Term Evolution (LTE), the predominant global OFDMA-based standard, and 802.16m, an
upgrade of IEEE 802.16e (WiMAX or Worldwide Interoperability for Microwave Access), have both been approved by the ITU to become what
are called IMT-Advanced technologies. Release 10 of LTE and WiMAX 802.16m support additional features, wider bandwidths and higher data
rates than previous versions of these OFDMA air interfaces, which are part of IMT-2000. There is no uniform industry agreement on the 4G
definition; 4G is now broadly used to include OFDMA technologies that are part of the ITU’s IMT (IMT-2000 and IMT-Advanced) standards
and has also been used in marketing campaigns by certain carriers for the 3G WCDMA evolution to HSPA+. Since LTE typically will be
overlaid over existing 3G networks, seamless interoperability with 3G (including all CDMA-based 3G technologies) has been standardized by
3GPP and 3GPP2. The first deployments of LTE have been based on Release 8, formally a part of the 3G IMT-2000 standard. According to
Wireless Intelligence estimates, the total number of global 4G LTE connections reached approximately 40 million and is expected to reach
approximately 560 million in 2016.
WiMAX 802.16e was deployed ahead of LTE and targeted unpaired spectrum using a TDD radio interface. LTE supports both paired
spectrum, using LTE FDD, and unpaired spectrum, using LTE TDD, and is able to address many of the unpaired spectrum bands targeted by
WiMAX. Compared to WiMAX, LTE is expected to achieve greater economy of scale through its interoperability with 3G. Certain wireless
operators have selected WiMAX because of regulatory considerations specific to their networks and spectrum holdings. Many WiMAX
operators have announced that they are planning to move to LTE TDD.
For over ten years, we have pursued research and development of OFDMA-based wireless communication technologies, and, as a result,
have developed and acquired significant related intellectual property. Accordingly, we believe that each of the OFDMA-based 4G standards
incorporates our patented technologies. More than 30 companies (including LG, Nokia and Samsung) have entered into royalty-bearing license
agreements under our patent portfolio for use in OFDMA products that do not also implement CDMA-based standards. Multimode products that
implement both OFDMA and CDMA technologies will, in most cases, be licensed under our existing CDMA license agreements.
Our Engineering Resources. We have significant engineering resources, including engineers with substantial expertise in CDMA, OFDMA
and a broad range of other technologies. Using these engineering resources, we expect to continue to develop new versions of CDMA, OFDMA
and other technologies, develop alternative technologies for certain specialized applications, participate in the formulation of new voice and data
communication standards and technologies and assist in deploying digital voice and data communications networks around the world.
Investments in New and Existing Products, Services and Technologies. We continue to invest in research and development in a variety of
ways in an effort to extend the demand for our products and services.
We develop, commercialize and actively support 3G CDMA-based technologies, as well as OFDMA-based LTE technologies, products and
network operations, to grow our royalty revenues and integrated circuit and related software revenues. From time to time, we may also make
acquisitions to meet certain technology needs, to obtain development resources or to pursue new business opportunities.
We develop on our own, and with our partners, innovations that are integrated into our product portfolio to further expand the opportunity for
wireless and enhance the value of our products and services. These innovations are expected to enable our customers to improve the performance
or value of their existing services, offer these services more affordably and introduce revenue-generating broadband data services ahead of their
competition.
We make investments to provide our integrated circuit customers with chipsets designed on leading-edge technology nodes that combine
multiple technologies for use in consumer devices, including smartphones, consumer electronics and other data devices. In addition to 3G and
4G LTE technologies, our chipsets support other wireless and wired connectivity technologies including Wireless Local Area Network (WLAN),
Bluetooth, Ethernet, Global Positioning System (GPS), Global Navigation Satellite System (GLONASS), Powerline Communication, Passive
Optical Networking, Ethernet-over-Coax (EoC) and Ethernet Switching. Our integrated chipsets often include multiple technologies, including
advanced multimode modems, application processors and graphics engines, as well as the tools to connect these diverse pieces of technology.
We continue to support Android, Windows Phone/RT and other mobile client software environments in our chipsets.
We continue to develop our interferometric modulator (IMOD) and other display technologies. We intend to license our next generation
IMOD display technology in the future, while we continue to develop and directly commercialize only certain
5