Motorola to Rely on Video for 4G Growth and More
Motorola will broaden its video applications and solutions portfolio, carrying its WiMAX and LTE deployments into broadband expansion this year, Dan Moloney, president of Home & Networks Mobility, said at the Bank of America and Merrill Lynch Technology Conference Wednesday. He hinted at potential LTE network and equipment deals with service providers China Mobile and Japan’s KDDI. The manufacturer is also looking at further video acquisitions this year, he said.
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Motorola is targeting video, personalized media services and broadband to drive its home and network markets, Moloney said, stressing that video is the key driver for 4G. That means broader cable, IPTV and hybrid set-top products, improved compression and encoding offerings and bandwidth management services including switched digital video and deep fiber solutions, he said. The company has organized its business units to offer 4G mobile broadband technology WiMAX and LTE services spanning core, video headend, service delivery, infrastructure, backhaul, devices, chipsets, operations and management, he said. Its personal media offering will include time- and place-shift solutions, unparalleled content management and ultrabroadband solutions, he said.
Regulatory conditions are looking bright for WiMAX expansion and adoption: Market demand for wireless DSL replacement fuels growth in WiMAX technology in unserved and underserved markets, Moloney said. The market is also transitioning: Legacy networks will continue to diminish; market growth is flattening as 2G technologies mature and subscriber growth subsides; demand for mobile broadband applications is growing, he said. But the U.S. isn’t the biggest WiMAX market now, he said, noting the focus in markets in Latin America and the Middle East. He projected $500 million to $600 million WiMAX revenue this year. In the U.S., Motorola is the manufacturer behind WiMAX operator Clearwire’s launch in Portland, Ore., and future launches in Atlanta, Charlotte, Chicago, Honolulu, Las Vegas and Seattle later this year.
LTE revenue will take a lot longer to recognize, Moloney acknowledged. The company wasn’t “totally shocked” when Verizon picked two other equipment suppliers for its LTE plans, he said, noting Motorola had done LTE trials with Verizon. Time will tell if Verizon will select a third supplier, he said. Meanwhile, Motorola is working with China’s biggest operator, China Mobile, on trials and the operator is expected to announce its suppliers before early next year, he said. Trials are also being conducted in Japan with service provider KDDI, he said. The operator will announce its suppliers in the second half of the year and “we are strongly positioned to be a player,” he said.
Meanwhile, Motorola might continue to buy more video companies, Moloney said. The company has acquired eight video operators in the last four years, many focusing on video infrastructure. Taking video infrastructure to IP is the trend, which is occurring faster in the U.S. than the rest of the world, Moloney said. The company also eyes pushing video, IPTV and cable offerings in Europe, the Middle-East, Africa and Asia, he said.
The company signed a licensing agreement with technology provider Tessera Technologies late Tuesday, ending all patent litigation, Tessera said. Motorola will pay Tessera royalties on shipments into the U.S. of certain electronic products including cellphones, set-top boxes, and radio equipment that incorporate semiconductors. The International Trade Commission recently found Tessera’s asserted patents are valid and infringed by Motorola and three other companies.