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QCOM Completes SMS Over GEO Satellite Trial: Will the Stock Benefit?

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QUALCOMM Incorporated (QCOM - Free Report) recently completed an end-to-end trial of SMS send and receipt over a Geostationary Equatorial Orbit (GEO) satellite in collaboration with Deutsche Telekom (DTEGY - Free Report) and Skylo, marking a significant milestone in the development of satellite communication services. This marks the first time in Europe that an operator’s terrestrial mobile network has been integrated with a satellite network to enable texting, following the 3GPP Release 17 specifications for Direct-to-Handset (D2H) connectivity.

Digging Deep Into QCOM-DTEGY-Skylo Collaboration

The trial, conducted in Greece, combined the operator-native NB-NTN (Narrowband-Non Terrestrial Network) D2H approach, which integrates mobile operators’ terrestrial networks with Skylo’s pioneering non-terrestrial network to provide seamless and widespread coverage. As part of the trial, an SMS was sent from a device with a Cosmote SIM card, utilizing Skylo’s satellite network within the Mobile Satellite Services spectrum. 

The device was equipped with QUALCOMM’s cutting-edge Snapdragon X-80 5G Modem-RF System, which provided integrated NB-NTN satellite connectivity based on 3GPP Release 17 standards. This innovation will likely allow customers in remote or underserved regions to send and receive text messages globally through satellite connectivity.

Increasing Client Base to Drive Performance for QCOM

This successful trial signals the beginning of broader efforts to bring satellite connectivity closer to consumers by seamlessly integrating it into existing mobile networks. It lays the foundation for future commercial services, offering new possibilities for connectivity in regions traditionally underserved by conventional cellular infrastructure. 

With a strong presence in more than 30 countries, the leading semiconductor company is expected to benefit from the increasing customer base, leading to higher revenues in the upcoming quarters. Improving financial performance is likely to propel QCOM stock upward.

QCOM’s Stock Price Performance

Shares of QUALCOMM have gained 22% over the past year compared with the industry's growth of 39.3%.

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QCOM’s Zacks Rank and Other Key Picks

QUALCOMM currently carries a Zacks Rank #2 (Buy). 

A couple of other top-ranked stocks in the broader industry have been discussed below.

Workday Inc. (WDAY - Free Report) carries a Zacks Rank #2 at present. In the last reported quarter, it delivered an earnings surprise of 7.36%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

WDAY is a foremost supplier of enterprise-level software solutions for human resource and finance management. WDAY changes the way analytical insights and contributions to decision-making are made available to businesses by integrating finance and human resources as one system on the cloud. 

InterDigital, Inc. (IDCC - Free Report) sports a Zacks Rank of 1 at present. It has a long-term growth expectation of 17.44%

IDCC is a pioneer in advanced mobile technologies that enable wireless communications and capabilities. The company designs and develops a whole range of advanced technology solutions for use in digital cellular, as well as wireless 3G, 4G, and IEEE 802-related products and networks.

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