TAMPA, Fla. — Semiconductor giant Qualcomm is scrapping plans to provide the technology Android smartphones would need to directly connect to Iridium’s satellites when they can’t reach a cell tower.
Despite successfully developing and demonstrating a chip enabling everyday phones to connect with satellites for SOS, texts, and other low-bandwidth messaging services, Iridium announced Nov. 9 that no smartphone makers have included Qualcomm’s enabling technology in their devices.
Iridium and Qualcomm had expected smartphones to be released in the second half of 2023 with this capability when they announced their partnership early this year.
Qualcomm had an agreement with Iridium to support hardware development and another to sell the technology to smartphone makers — both will terminate Dec. 3, Iridium spokesperson Jordan Hassin said.
Hassin said Iridium was not part of the talks Qualcomm had with smartphone makers and so could not comment on the lack of traction with them.
Price was likely a contributing factor, according to William Blair analyst Louie DiPalma.
“Qualcomm conveyed to us that even though the Iridium service was functional and available for smartphone manufacturers to incorporate in their phones, the smartphone manufacturers did not have a ‘line of sight on the monetization models’,” he said in a note to investors.
“This implies that smartphone manufacturers were concerned about the economics and were objecting to the price Qualcomm was charging.”
Qualcomm said in an emailed statement that smartphone manufacturers prefer a standards-based approach rather than a proprietary solution.
Iridium recently indicated it is looking into adding 5G standards-based connectivity to its satellite network, DiPalma noted, which would simplify the handoff between cellular and satellite networks.
Although Qualcomm is terminating efforts with Iridium on a proprietary solution, the company said it remains…
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