Bloomberg report re Ericy-Qcom:
Qualcomm, Ericsson to Work Together on Wireless Communications
San Diego, Feb. 2 (Bloomberg) -- Qualcomm Inc. and Ericsson AB agreed to jointly develop and market wireless technology designed to set a worldwide standard for wireless communication with electronic devices ranging from mobile phones to computers.
The companies will develop technology that supports both Qualcomm's Code Division Multiple Access cellular phone standard, which is widely used in the U.S., and Ericsson's Bluetooth technology that links electronic devices using short-range radio instead of cable wires.
The technology would make it easier to perform a variety of functions, from making phone calls to sending e-mail to changing TV channels and taking photographs, using just one device.
''Together, we will drive to expand the number of applications possible by tightly integrating Bluetooth with CDMA technology,'' said Johan Lodenius, senior vice president of marketing and product management at Qualcomm.
Qualcomm makes money by licensing CDMA technology to the makers of phones and phone equipment. Royalties from licenses amounted to 16 percent of revenue during the quarter ended in December, double the percentage of the December 1998 quarter.
Bluetooth technology is under development and was founded by Ericsson along with International Business Machines Corp., Intel Corp., Nokia Oyj and Toshiba Corp.
The agreement contrasts with previous friction between the two companies. Ericsson AB, the world's third-largest mobile phone maker, and rival Qualcomm Inc. agreed last March to end a two-year patent dispute and share each other's technology.
Ericsson shares were up 6.8 percent to 707 kronor. Qualcomm shares closed up 7.14 percent to 136 1/16 yesterday in U.S. trading.
Feb/02/2000 8:49
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