The Friday File: Qualcomm gets strong-armed; Veon in investor crosshairs

Mobile World Live (MWL) brings you our top three picks of the week as Arm’s row with Qualcomm heated up, a shareholder outlined disappointment with Veon’s share price and Deutsche Telekom announced plans to sunset 2G in 2028.

Arm to cancel Qualcomm licence as row escalates

What happened: Arm reportedly issued a notice to revoke an IP licence which enables US chip giant Qualcomm to design its processors, a move which could jeopardise global supply chains.

Why it matters: Cancellation of the architectural licence could force Qualcomm to stop sales of its processors, which run the majority of Android devices.

The notice also escalates an existing legal battle between the pair, as Arm sued the US chipmaker in 2022 following Qualcomm’s acquisition of Nuvia.

Qualcomm said Arm’s decision is part of “more unfounded threats designed to strong-arm a longtime partner, interfere with our performance-leading CPUs, and increase royalty rates regardless of the broad rights under our architecture licence”. Responding to this comment, Arm said it “is fully prepared for the trial in December and remains confident that the court will find in Arm’s favour”, accusing Qualcomm for “repeatedly” breaching their IP agreement.

Veon backs strategy following investor criticism

What happened: Veon welcomed an open letter from investor Shah Capital which expressed disappointment over the operator’s performance, as the shareholder called for changes.

Why it matters: In its letter Shah Capital outlined multiple factors it wanted Veon to improve, including: shareholder capital returns; low share volume; “bureaucratic” operations; and high tax expenses.

In its response Veon agreed there is room for improvement for its current stock price and claimed it continues to refine its structure and “digital strategy” to diversify and expand its services.

Shah Capital owns approximately 7 per cent holdings in Veon.

Deutsche Telekom sets date for 2G sunset   

What happened: Deutsche Telekom earmarked June 2028 for the completion of 2G switch-off, having completed its 3G sunset in 2020.

Why it matters: The operator said it will replace 2G with 4G in areas covered by the former network before the switch-off begins, telling customers handsets reliant on 2G should be replaced in “good time”.

It will also repurpose the 900MHz spectrum currently used by the old network for newer technologies, which CTO at Deutsche Telekom Abdu Mudesir believes will “further improve our network”.

“We want fast data transmission for everyone – and we want it everywhere. That’s why we will use the frequencies in our network for 4G and 5G in the future to make mobile surfing even better, especially in rural areas,” Mudesir said.