Qualcomm Goes Big on P2P Networking – But Do We Need a New Tech?

| Feb 9, 2011 | Mobile Device Silicon | Analyst: Peter Jarich

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Event Summary

February 8, 2011 – Qualcomm announced that it would demonstrate its FlashLinq peer-to-peer wireless technology at Mobile World Congress 2011. Debuted last year, FlashLinq enables devices to discover one another and communicate in a peer-to-peer (P2P) manner without access to any additional infrastructure leveraging a TDD-OFDMA airlink and licensed spectrum. Subsequently, Qualcomm launched AllJoyn, an open-source technology framework for developing P2P-based applications and services.

Quick Take

Analytical Summary

• Current Perspective: Moderate on Qualcomm’s introduction of FlashLinq and AllJoyn, because the launch of licensed-spectrum technology that helps operators to both offload traffic from their traditional cellular networks while simultaneously monetizing their customer relationships and supporting so-called business-to-business-to-consumer business models, Qualcomm has, once again, demonstrated its deep understanding of operator pain points. Unfortunately, it has also, again, taken off on developing a new radio technology with little indication of mass adoption beyond planned trials with SK Telecom and a potentially troubled business model should operators choose to “hijack” a user’s device for their own profit (potentially impacting device battery and performance in the process). Breaking with its penchant for insularity, however, the AllJoyn initiative saves FlashLinq by, potentially, pulling it into a broader developer ecosystem that has a much better chance at leveraging the P2P technology than Qualcomm could manage on its own; to the extent that AllJoyn encompasses WiFi and Bluetooth as well, Qualcomm’s support for data offload is actually decoupled from FlashLinq, improving its odds of meeting diverse operator demands.

• Vendor Importance: High to Qualcomm, because the race for differentiation within the mobile device silicon space is a fierce one. Competition around processor speeds, graphics capabilities, power consumption and integration isn’t like to lighten up any time soon. FlashLinq, however, represents a new technology attempting to address operator network congestion and monetization worries – differentiating Qualcomm’s solutions in the process. AllJoyn, in turn, gives FlashLinq better odds of survival by potentially exposing it to a broader developer base.

• Market Impact: Moderate on the broader mobile ecosystem to the extent that the success of either initiative is still far from assured. Doubtless, competitors in the mobile silicon space will see this as yet another indication that the computing power arms race is only one way to win customers. Service providers and network vendors, in turn, should begin working to understand ways that P2P networking technologies can be used. Yet, until FlashLinq proves out its capabilities, interest in the proprietary technology will be limited. And, even though AllJoyn reaches out to standardized technologies like WiFi and Bluetooth, its ability to court developers (none of which were cited at launch) will determine its success.

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Current Perspective

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