Propitious7, Re: BREW and “BREW fee allocation- not a royalty
As I recall, the 90-10-10 to QCOM allocation of user charges for a BREW download, as originally described in BREW releases from QCOM at the outset of BREW offerings, was a payment to QCOM for "service rendered". <<<<<<<<<
That’s basically my understanding also. And, as you pointed out, the BREW “system” is evolving and appears to be flexible in nature. I believe in one of the Q presentations it was stated that for some small carriers Qualcomm provides the complete end-to-end solution, but others use what they need. So, I imagine the cost sharing formula is also flexible as to the level of Q’s services. My recollection of the original formula was the developer’s share at 80% with the Q and the carrier splitting the remaining 20% (I believe a 10/10 was the original example).
During the Gilder Telecosm conf I was informed the sharing was based on the carrier’s wholesale pricing excluding the carrier’s markup.
Also, I wouldn’t be surprised if the Q has restricted it’s share somewhat in the initial deployment of BREW to encourage it’s adoption by the carriers. BREW revenue is included within the QWI segment, the total of which has been relatively static over the past three quarters despite the reported significant increase in BREW stats.
QWI Revenue $M)
..................Rev..........Omnitracs Units (thous)
Fy03-q4....$143.3........10.1
Fy04-q1.......132.6.......10.9
Fy04-q2.......144.6.......11.2
Hopefully we’ll begin to see QWI revenue growth accelerate in the coming quarters as BREW gains traction.
Further BREW info-
Peggy Johnson interview
Bringing BREW To The Masses
wirelessweek.com.
Snips>>>>>>>>>>>>
WW: Is this new capability intended to combat the fear that some carriers have that if they select BREW they will look like all the other BREW operators?
Johnson: Yes, and operators can still have their own developers. Many of our operators have their own arrangements with developers, but they run those developers through our testing and cataloging system. They make them available to their end users, but they aren't available to any other carrier's subscribers. The operators have quite a bit of control.
We knew when we developed BREW that the operators would want that kind of control. We present the operators with a bunch of applications and they can then pick them. The operators decide what goes on their catalogs and what doesn't. They decide if they want exclusive apps. They decide how deeply they want to test the apps.
We battle a misconception that BREW is very controlling because it is an end-to-end solution. At every point along that system, we give the operator the ability to take different forks in the road. We feel that is our strongest selling point. What you might read from competitors is that BREW is controlling, but if you talk to BREW operators you realize that they have the control in the system.
WW: Has some of the debate or positioning of BREW and Java as competitors subsided?
Johnson: Some of that controversy has died down. People will always compare the two. We have said all along that BREW is complementary to Java and we still feel that way. The comparison between BREW and Java is really an apples to oranges comparison. BREW is an end-to-end system and J2ME is a coding language. If you were to compare it to BREW, you would have to wrap it with a distribution system, a monetization system and an authentication system.
Notes from Dr. Paul Jacobs’ Spring meeting presentation re: BREW
4. KDDI Handset Portfolio- CDMA 1x Launch April 2002 (9 total, 5- 1x)
......KDDI is a good example of how the devices and services come together
........Advertising shows services enabled by each device
..........GPS- first major application was EZnavigation (gpsOne)
..........Camera just starting
..........Applications were primarily Java
..........Now KDDI is moving primarily to BREW so that they can add the apps and services that the customers are demanding without putting to much burden on the handset manufacturer to do all the integration.
5. KDDI Handset Portfolio- CDMA2000 1xEV-DO Launch Nov 2003 (9 total, only 2 with EV-DO)
.......New services introduced with EV-DO Launch
..........Chaku Uta (MP3 music)- requires payment for music downloads (not like PC downloads)
............Ring tone downloads over a $1 Billion business
.......Only two EV-DO handsets at launch, take-up slow
6. KDDI More than Doubles Content ARPU- April 2004
......87% of 1XWIN (EV-DO) service subscribe to the flat-rate pricing
......No reason to believe response in the U.S. will be lower than Asia.
7. KDDI BREW downloads accelerate as more phone are BREW enabled
.......Jan ’04- 0.9M
.......Feb ’04- 1.2M
.......Mar ’04- 1.5M
8. Verizon- Wireless Growth Opportunity- Focus on Data
........19 Million downloads in 1Q04
........SMS taking off – 2.1 Bill messages in quarter
........Picture messaging taking off- >21.1 million in quarter
........% Base w/ 1x handsets
...........1Q’03- 20%
...........4Q’03- 52%
..........1Q’04- 63%
9. BREW by the Numbers
...........................................................Sept 2003..........April 2004
.......World wide app downloads.........50M+..................100M+
.......Devices in the market..................12.5M....................21M+
.......Commercial device models..............80+.....................120+
.......Commercial operators.......................10..........................27
.......Device Manufactures.........................17.........................24
.......Countries w/ BREW services..............7.........................19
.........BREW Downloads doubled in last 6 months
.........Devices almost doubled in last 6 months
.........BREW developer community is making a lot of money
10. KDDI BREW Application FM Radio Application EZ FM
...........Combination of multi services integrated in this application
11. KDDI BREW Application- Two Dimension Bar Code Scanner
.........Take picture of bar code
............Combine print media w/ phone
............Would not happen without BREW- Operators would not take chance if had to develop solely
12. User Interfaces (UI) on BREW- Operator Customization
.........Enables operators to brand all areas and depths of UI
.........Adds value to OEMs
............Able to rapidly respond to carrier requests
............Already being adopted by first mover OEMs
.........Developing operator unique UI huge burden on handset manufactures
............QCP experience- 3 UIs- VZN, PCS, other
...............Huge cost to integrate UI on phone and test from scratch
............with BREW- build UI on top of BREW layer and thus separates test from phone
.........Developing a single UI can take 100 man years
.........With BREW can ship the same phone to different operators with custom UI for each operator
.........Operator advantage- with BREW they know they can get the same UI across all H/S manufactures
...............Pre integrated w/ Q chips – Q ships s/w to h/s mfg with time and cost savings.
13. BREWChat Capable Devices-
..........Committed Handsets
............Giga
............Kyocera -5
..........Target Handsets
............Audiovox (curitel)
............Samsung
14. All Voice Over IO (VOIP), All BREW Applications
...........BREWChat 1x Rel 0 – LG, Kyocera (MSM5100)- Hutch, Tata - 2.5 sec latency
...........Qchat 1x Rel A- Samsung, LG, Kyocera (MSM6100) Nextel - 1.5 sec latency
...........Qchat EV-DO Rel 0 w/ QOS (MSM6500)- less than 1 sec latency
..........With Rev A + enhancements less than 1 sec latency- Best in the Industry. |
