Smartphone chips Digitimes 230It's a tragedy for all of us that Intel is abandoning the 5G modem business. It had little choice after Apple & Qualcomm cut a deal. That leaves Qualcomm with almost no 5G competition except Taiwan's MediaTek and China's Spreadtrum.  Competition doesn't just drive down prices; it forces all to excel.

Intel remains one of history's greatest chipmakers, but Qualcomm is a year ahead of them in 5G, a remarkable achievement. Intel has lost US$billions in mobile and never found a niche. They will presumably take a large write-off in a few weeks and may fire thousands of engineers.

Intel to Exit 5G Smartphone Modem Business, Focus 5G Efforts on Network Infrastructure and Other Data-Centric Opportunities

SANTA CLARA, Calif., April 16, 2019 – Intel Corporation today announced its intention to exit the 5G smartphone modem business and complete an assessment of the opportunities for 4G and 5G modems in PCs, internet of things devices and other data-centric devices. Intel will also continue to invest in its 5G network infrastructure business.

The company will continue to meet current customer commitments for its existing 4G smartphone modem product line, but does not expect to launch 5G modem products in the smartphone space, including those originally planned for launches in 2020.

“We are very excited about the opportunity in 5G and the ‘cloudification’ of the network, but in the smartphone modem business it has become apparent that there is no clear path to profitability and positive returns,” said Intel CEO Bob Swan. “5G continues to be a strategic priority across Intel, and our team has developed a valuable portfolio of wireless products and intellectual property. We are assessing our options to realize the value we have created, including the opportunities in a wide variety of data-centric platforms and devices in a 5G world.”

Intel expects to provide additional details in its upcoming first-quarter 2019 earnings release and conference call, scheduled for April 25.

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Samsung has delivered 5G chip samples to BBK's Oppo and Vivo, the #2 or #3 phones manufacturer. Samsung is facing off against Qualcomm in the 5G market. Qualcomm is unfazed and reportedly moving the production of their next chip from TSMC to Samsung. 

Sprint's 2.5 GHz 5G is delivering 100-500 megabit downloads consistently. That bodes well for China Mobile, using the same frequencies.

Vodafone, BT, and soon 3UK are delivering modestly sized 5G mid-band networks. Vodafone is also live in Spain and Italy. 

Sunrise in Switzerland is using 5G mid-band for fixed wireless in rural areas.  

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Welcome  1,000,000 Koreans bought 5G in the first ten weeks. The demand is there, and most of the technology works. Meanwhile, the hype is unreal. Time for reporting closer to the truth.

The estimates you hear about 5G costs are wildly exaggerated. Verizon is building the most advanced wireless network while reducing capex. Deutsche Telekom and Orange/France Telecom also confirm they won't raise capex.

Massive MIMO in either 4G or "5G" can increase capacity 3X to 7X, including putting 2.3 GHz to 4.2 GHz to use. Carrier Aggregation, 256 QAM, and other tools double and triple that. Verizon sees cost/bit dropping 40% per year.

Cisco & others see traffic growth slowing to 30%/year or less.  I infer overcapacity almost everywhere.  

Believe it or not, 80+% of 5G (mid-band) for several years will be slower than good 4G, which is more developed.