Report: Qualcomm to Take Small Cell Stake in AlcaLu
Qualcomm Inc.'s bid to be the big dog in the world of small cell silicon will reportedly lead to taking a stake in infrastructure provider Alcatel-Lucent on Tuesday.
The Financial Times reports that Qualcomm will take a small stake in AlcaLu as part of a wider-ranging small cell partnership. The deal will be announced on AlcaLu's second quarter earnings call Tuesday, according to the FT.
AlcaLu is already a major supplier of macro LTE equipment to many operators worldwide. The vendor has started to ink similar small cells deals with operators such as Verizon Wireless in the U.S. (See Verizon Taps AlcaLu & Ericsson for 4G Small Cells.)
Getting in with a major supplier will be helpful for Qualcomm as small cells start to arrive in larger numbers during the next year or two. Operators are likely to initially lean on their macro suppliers for small cell deployments in hopes of alleviating any interference and hand-off issues between the main network and the tiny radios at the edge.
Qualcomm has already started to add silicon smarts in preparation for a world full of tiny basestations. The chip-maker bought small cell specialist, DesignArt, for a rumored $100 million in August 2012. (See Qualcomm Snaps Up Small Cell SoC Designer.)
— Dan Jones, Site Editor, Light Reading Mobile