A Press Release came out today about Qualcomm getting new investors for its BWA foray into India. For those of you who are not following this:

Qualcomm Unveils LTE Plans for India

Qualcomm Names India LTE Investors

What is interesting to me is that Qualcomm’s idea of creating a market customer for their technology is a brilliant idea.

  • Pick one of the largest and under-served markets in the World
  • Invested for LTE spectrum
  • Find investors to help create a competitor to  Bharti and Reliance in a new market niche
  • And finally supply them with your technology so that they can succeed.
  • Remove yourself from the venture when services start.

Perfect way to increase you existing business and new products business.  But could they do more?

India is going to be upgrading virtually all of its infrastructure and will be needing M2M Communications to make sure everything operates correctly.  Qualcomm is also in a JV with Verizon Wireless for increasing M2M communications.  Why wouldn’t Qualcomm stay in this Indian Joint Venture and use the opportunity to grow and develop low-cost M2M applications that could then be used in other areas?  The biggest complaint about M2M communications is that they are plentiful but the revenue isn’t.  Low cost is key.  Where better than India to do that?

Probably equally important,  the Indian Market will quickly sort out valuable services and embrace them. Wouldn’t Qualcomm want that knowledge.  I think Qualcomm is in a unique position to take advantage of  McKinsey & Co 5 crucibles of innovation:

  1. The great rebalance:  focus on emerging markets and plan innovation within those markets.
  2. The productivity imperative:  The markets will reward those that change their business model to be most productive.
  3. The global grid: Every Company is a global company – those that build a global DNA will thrive.
  4. Pricing the Planet:  business models that drive resource productivity are just as important as labor productivity
  5. The Market State:  Companies have to work across multiple regulatory environments

So Qualcomm has a brilliant plan for increasing their business right up to the point that they remove themselves when services start.  I think they should stay in this venture and grow beyond just their existing business.

Disclosure:  Not invested in Qualcomm – but wish I was

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