Feeds

Patent fees weigh down 3G uptake

Patently obvious

  • alert
  • submit to reddit

Using blade systems to cut costs and sharpen efficiencies

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

HP ProLiant Gen8: Integrated lifecycle automation

More from The Register

next story
Yorkshire cops fail to grasp principle behind BT Fon Wi-Fi network
'Prevent people that are passing by to hook up to your network', pleads plod
Major problems beset UK ISP filth filters: But it's OK, nobody uses them
It's almost as though pr0n was actually rather popular
Apple orders huge MOUNTAIN of 80 MILLION 'Air' iPhone 6s
Bigger, harder trouser bulges foretold for fanbois
Microsoft unsheathes cheap Android-killer: Behold, the Lumia 530
Say it with us: I'm King of the Landfill-ill-ill-ill
All those new '5G standards'? Here's the science they rely on
Radio professor tells us how wireless will get faster in the real world
US freemium mobile network eyes up Europe
FreedomPop touts 'free' calls, texts and data
'Two-speed internet' storm turns FCC.gov into zero-speed website
Deadline for comments on net neutrality shake-up extended to Friday
Oh girl, you jus' didn't: Level 3 slaps Verizon in Netflix throttle blowup
Just hook us up to more 10Gbps ports, backbone biz yells in tit-for-tat spat
prev story

Whitepapers

Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Reducing security risks from open source software
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.