SoftBank Opts for Qualcomm Modem

Qualcomm Inc.’s (QCOM - Analyst Report) popular MDM9215 processor – capable of supporting 4GLTE network – has been integrated in Japan’s SoftBank Mobile Corp.’s newly launched wireless broadband router.

The new modem will be developed by Chinese firm ZTE Corporation, which uses Qualcomm’s MDM9x15 chipsets that belong to the second generation of Gobi-powered 4G/LTE family and also adheres to the 28 nm manufacturing standard. Additionally, the SoftBank 102Z router supports connections of maximum 10 devices across 3G and 4GLTE platforms.

The new MDM9x15 chipset entails MDM9615, MDM9215 and MDM8215 processors under the Gobi family and offers multiple network compatibility across CDMA, WCDMA and TD-SCDMA platforms.

The second generation Gobi chipset is already being used by 30 different OEM manufacturer in 90 different devices. The new MDM9x15 processor features 30% less battery consumption, coupled with faster network speed and easy connectivity across both 3G and 4GLTE platform.

Moreover, the MDM9x15 chipset is powered with an application processor that enables OEMs to effectively develop and integrate value-added functions, inclusive of hotspot services when the mobile access point feature is used.

Lower supply of Snapdragon S4 processor (mainly used in LTE-based devices) has allowed Qualcomm to launch new MDM 9615 chipset that belongs to the Gobi platform. The new processor supports TD-SCDMA technology mainly used in the Chinese markets. So, it is to be seen whether Apple Inc.’s (AAPL - Analyst Report) recently launched iPhone 5 will use the new MDM 9615 processor for its Chinese markets or rather wait till the supply of the popular Snapdragon S4 processor improves.

We maintain our long-term Neutral recommendation for Qualcomm Inc. Currently, it has a Zacks #3 Rank, implying a short-term Hold rating on the stock.