Qualcomm, Ericsson agree on wireless standard (Bluetooth)
By Bloomberg News
Special to CNET News.com
February 2, 2000, 10:45 a.m. PT
Qualcomm and Ericsson 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.
In an agreement that extends the pair's working relationship, the companies will develop technology that supports both Qualcomm's Code Division Multiple Access (CDMA) cellular phone standard, which is widely used in the United States, and Ericsson's Bluetooth technology, which links electronic devices using short-range radio instead of cable wires.
The technology would make it easier to perform a variety of functions making phone calls and sending email to changing TV channels and taking photographs--by allowing different devices to easily talk to each other via a wireless connection.
"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 last December, double the percentage of the December 1998 quarter.
Bluetooth technology is an industry standard that is under development by companies such as Ericsson, IBM, Intel, Nokia Oyj and Toshiba.
The agreement contrasts with previous friction between the two companies. Mobile phone maker Ericsson and rival Qualcomm agreed last March to end a two-year patent dispute and share each other's technology.
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