Feeds

Patent fees weigh down 3G uptake

Patently obvious

  • alert
  • submit to reddit

Providing a secure and efficient Helpdesk

ComputerWire: IT Industry Intelligence

The cracks keep on appearing in the third-generation mobile market, but the news is not another European operator abandoning its 3G license, instead it is the market realization that technology licensing costs could torpedo the market for 3G before it even takes off.

The 3G standard controlled by US technology company Qualcomm Inc, CDMA2000, seems relatively sensible, with the company fixing the royalty rates at around 5% to 6% of the cost of end-user equipment. However, with the more widespread W-CDMA technology these costs could spiral to around 20% believes consulting group PA Consulting. The company also criticized the patent holders, of which there are estimated to be around 100, for not setting up a single body for companies to license W-CDMA technology.

Strong criticism on this subject has also been made by Brian Kearsey, director general of the major third-generation standards group, the 3GPPP (3G Patent Platform Partnership). Although Nokia attempted to push for the introduction of a cap on 3G intellectual property royalties at around 5% earlier in the year, so far this has borne no fruit. However, the 3GPPP has also backed Nokia's idea of a 5% flat fee and is pushing to settle the license payments as well as intellectual property claims.

The problem is also that many of the major patent holders, such as LM Ericsson Telefon AB are in serious financial trouble, high license payments will favor them in the short term, but could cripple the early development of the market, due to few vendors actually competing and therefore prices, especially of mobile handsets, remaining too high.

© ComputerWire

Protecting against web application threats using SSL

More from The Register

next story
Brit telcos warn Scots that voting Yes could lead to HEFTY bills
BT and Co: Independence vote likely to mean 'increased costs'
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
New 'Cosmos' browser surfs the net by TXT alone
No data plan? No WiFi? No worries ... except sluggish download speed
Radio hams can encrypt, in emergencies, says Ofcom
Consultation promises new spectrum and hints at relaxed licence conditions
Blockbuster book lays out the first 20 years of the Smartphone Wars
Symbian's David Wood bares all. Not for the faint hearted
Bonking with Apple has POUNDED mobe operators' wallets
... into submission. Weve squeals, ditches payment plans
This flashlight app requires: Your contacts list, identity, access to your camera...
Who us, dodgy? Vast majority of mobile apps fail privacy test
Apple Watch will CONQUER smartwatch world – analysts
After Applelocalypse, other wristputers will get stuck in
prev story

Whitepapers

Providing a secure and efficient Helpdesk
A single remote control platform for user support is be key to providing an efficient helpdesk. Retain full control over the way in which screen and keystroke data is transmitted.
Saudi Petroleum chooses Tegile storage solution
A storage solution that addresses company growth and performance for business-critical applications of caseware archive and search along with other key operational systems.
Security and trust: The backbone of doing business over the internet
Explores the current state of website security and the contributions Symantec is making to help organizations protect critical data and build trust with customers.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.