Chip company Qualcomm and communications technology provider Iridium have ended their partnership to provide satellite to phone services.
Earlier this year, the companies joined forces to offer satellite-based messaging and emergency services.
Go deeper with GlobalData
The businesses successfully developed and demonstrated the solution using Iridium’s satellite network and Snapdragon’s semiconductors.
However, smartphone makers have not included the technology into their products, which led Qualcomm to end the partnership.
In a statement, seen by CNBC, Qualcomm said that smartphone manufacturers have “indicated a preference towards standards-based solutions” for satellite-to-phone connectivity.
“We expect to continue to collaborate with Iridium on standards-based solutions while discontinuing efforts on the proprietary solution that was introduced earlier this year,” the chipmaker said.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataThe development comes as major companies are pursuing the emerging business of connecting unmodified phones straight to satellites.
Several smartphone manufacturers, telecommunications carriers, and satellite firms have collaborated on such initiatives. These include Apple, T-Mobile, AT&T, SpaceX, Iridium, among others.
Iridium said it is free to work with other chipmakers, smartphone makers and mobile operating system developers.
Additionally, Iridium will be seeking new partnerships with chip manufacturers, developers, and OEMs of smart devices for its current and upcoming service plans.
The termination of the alliance will not affect the company’s financial guidance for full-year 2023, Iridium noted.
Iridium CEO Matt Desch said: “While I am disappointed that this partnership did not bear immediate fruit, we believe the direction of the industry is clear toward increased satellite connectivity in consumer devices.
“Led by Apple today, MNOs and device manufacturers still plan, over time, to provide their customers with expanded coverage and new satellite-based features, and our global coverage and regulatory certainty make us well suited to be a key player in this emerging market.”
