Broadcom Has Hard Baseband Decision Ahead

Broadcom has possession of a marvelous technological business, which they have cultivated over the years.  Various companies would desire to attain that business, specifically their cellular baseband unit. The idea of taking this action is becoming more realistic. If they decide to sell or wind-down the baseband unit, they could gain approximately $700 million in savings. How would they use that money? If Broadcom sells this unit, they will be able to put the money gained towards other research to expand and further develop of their company.  Broadcom has plans to work on small cells, embedded processing, and low-power connectivity.  This money will allow them the flexibility to explore those plans.  Selling the Broadcom cellular baseband unit could mean big things for the company. On the other hand, how desirable is this baseband business to other companies in the industry?  Forward Concepts analyst, Will Strauss, stated “I cannot think of a single cell phone chip company that needs them at the moment and could afford them.”  Yes, Broadcom would make a lot of money from selling this chipset, but are there actually buyers out their willing to pay the price? In the past, other companies in the industry including ST-Ericsson and Freescale have attempted to sell their baseband units. It proved to be a tricky process and we can expect no different in this instance.  Analysts have said that Broadcom’s LTE unit is sellable.  Hopefully that is the factor all the potential buyers will focus on. There are many pros and cons to consider when making this decision, but Broadcom needs to figure out where their priorities lie. Launch 3 Telecom buys and sells equipment that utilizes cellular baseband. For more information about LTE related products and manufacturers similar to Broadcom, contact Launch 3 Telecom at 877-878-9134 or email sales@launch3.net.
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