Qualcomm and Nokia in new Indian moves

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Qualcomm and Nokia in new Indian moves

Navteq to launch location ads, Qualcomm creates device venture

By CAROLINE GABRIEL

Published: 17 June, 2010

READ MORE: India | Qualcomm | NAVTEQ | Location | Handset

The recently concluded Indian spectrum auctions have just highlighted what the mobile majors already know - that the subcontinent is one of the biggest opportunities to offset saturation in traditional markets. This week sees Qualcomm and Nokia both readying new services to take advantage of the coming 3G networks, which should start to go commercial at the end of the year.

Qualcomm, fresh from acquiring broadband wireless spectrum in four telecoms regions, has created another alliance in India, with local phone design firm SmartPlay Technologies. They will collaborate to provide 3G smartphones and related services in India and other emerging markets, according to a joint statement.

"SmartPlay will introduce customized 3G solutions for the India market in late 2010 and will expand into south east Asia, the Middle East, Africa and other emerging markets by 2011," the statement went on.

India's unlisted SmartPlay is a cellphone design company which will create low cost handsets running Qualcomm's Brew software and content system, which is enjoying a resurgence in the mass market web services sector. It provides a platform well suited to low cost of data delivery, with relatively high margins for carriers.

Of course, Qualcomm's big Indian bet is currently its acquisition of the 2.3GHz spectrum, which it aims to use to introduce TD-LTE to the vast market. It is seeking joint venture partners to build and operate the resulting networks, and is expected to sell two stakes of 13% each in the venture (Indian foreign investment law restricts outsiders to a 74% holding), and eventually to exit the group altogether.

One of the frontrunner candidates is reported to be the GTL group, which makes telecoms infrastructure - as with the SmartPlay deal, this would see Qualcomm's powerful influence being put behind India's to-date halting efforts to create its own mobile manufacturing base and become, as one somewhat optimistic minister put it recently, "the new Taiwan".

GTL could become an even more interesting partner for Qualcomm should negotiations with Reliance Communications, reported in the local press, come to fruition. GTL Infrastructure is said to be close to a deal to pay $3.2bn for RCom's fiber and tower infrastructure unit, Infratel. The Economic Times says RCom would get INR150bn in cash - helpful for its coming 3G build-out - and its shareholders would take a 50% stake in the new entity. The new-look Infratel would be a natural cell site and backhaul partner for Qualcomm's venture, as well as, potentially, for the other Reliance giant, Reliance Industries, which acquired nationwide 2.3GHz spectrum following the purchase of ISP Infotel.

As for Nokia, one of its most strategic units, the Navteq mapping division, is to become the first company to offer location-based advertising services in India later this year, according to Light Reading Asia, reporting from the CommunicAsia show in Singapore (http://www.lightreading.com/document.asp?doc_id=193266&). Navteq claims it has 3m points of interest in India, though the ad service will be limited to certain regions. This is its first foray into an emerging economy with location-based advertising.