Qualcomm acquired Flarion Technologies Inc in 2006 for $600 million. This acquisition marked a significant milestone in the development of WiMAX technology.
Flarion's expertise in WiMAX was a key factor in Qualcomm's decision to acquire the company. Their technology allowed for faster data transfer rates and greater network capacity.
The acquisition gave Qualcomm a strong foothold in the WiMAX market, enabling them to compete with other major players in the industry.
Qualcomm Acquires
Qualcomm Inc. has acquired wireless broadband technology firm Flarion Technologies Inc. in a cash-and-stock deal worth about $600 million.
The acquisition will allow Qualcomm to offer cellular carriers diversity in terms of the type of fast wireless access they offer. Qualcomm can now support advanced development in both CDMA and OFDMA technologies.
Flarion's FLASH-OFDM technology is mobile and can deliver speeds to end users in excess of 1 Mbps. Qualcomm's acquisition of Flarion puts it in competition with Intel and WiMAX.
The deal is valued at about $600 million, with conditions that could add an additional $205 million in value to the deal. Qualcomm said it could pay $205 million more if the companies reached certain milestones within eight years of the deal’s closing.
Qualcomm dominates the market for CDMA, the most popular cellphone standard in the United States. It also sells licenses and chips for W-CDMA, a high-speed wireless standard that is emerging in Europe and other parts of the world.
The combination of Flarion and Qualcomm's engineering resources strengthens Qualcomm's position as a technology innovator and leader in the wireless industry. Qualcomm now has more than 300 OFDM patents, which could affect developers of WiMAX.
Qualcomm is willing to license these patents on fair and reasonable terms. Qualcomm President Steve Altman said, "We are willing to license these patents on fair and reasonable terms."
Suggestion: List of Wireless Network Technologies
Qualcomm to Acquire
Qualcomm will acquire Flarion Technologies Inc. in a cash-and-stock deal worth about $600 million, with the possibility of paying an additional $205 million if certain milestones are met within eight years.
Analysts say the purchase could help Qualcomm dominate future high-speed wireless technologies, as it combines Qualcomm's existing wireless technology portfolio with Flarion's OFDM patents.
The combined company will have more than 300 OFDM patents, which developers of WiMax will need to buy licenses for.
Qualcomm President Steve Altman said the company is willing to license these patents on fair and reasonable terms.
Qualcomm dominates the market for CDMA, the most popular cellphone standard in the United States, and also sells licenses and chips for W-CDMA, a high-speed wireless standard emerging in Europe and other parts of the world.
Flarion's Flash-OFDM technology is expected to be the only mobile wireless data access solution that supports high data rates at very low latencies over a distributed all-IP wireless network.
The acquisition will allow Qualcomm to offer cellular carriers diversity in terms of the type of fast wireless access they offer.
Qualcomm CEO Dr. Paul Jacobs said the acquisition will put the company in a stronger position to support advanced development in both CDMA and OFDMA technologies.
With this acquisition, Qualcomm will be able to offer wireless broadband to cellular operators and wireless ISPs, putting it in competition with Intel and WiMAX.
Discover more: Data Lake Inc
Frequently Asked Questions
Why is Qualcomm being sued?
Qualcomm is being sued for allegedly maintaining its market dominance by requiring customers to license its patents separately and refusing to license its standard-essential patents to competitors. This "no license – no chips" policy is at the center of the FTC's complaint.
Who is the founder of Flarion technologies?
Rajiv Laroia is the founder of Flarion, a company that specializes in packet-switched air interface technology. As the company's CTO, he oversees product direction and R&D activities.
Featured Images: pexels.com
