Another Article, More Optomistic>
Global wireless standard is sought | Consortium may ease
Qualcomm, Ericsson dispute
The San Diego Union-Tribune
European and Asian telecommunications
companies declared yesterday they would "build
a bridge" between wireless technologies
developed by San Diego-based Qualcomm and
its Swedish rival, Ericsson.
The move could ease uncertainty surrounding the development and
deployment of new and larger capacity wireless systems, known in the
industry as third generation, or 3G, a frontier worth billions of dollars. The
consortium of companies, which includes Japan's NTT Mobile
Communications Networks and [ British Telecommunications plc ] , agreed
to discuss altering their operating systems to accommodate a convergence of
Qualcomm's and Ericsson's latest technologies -- which are currently
incompatible.
"The ideal is to establish a worldwide . . . communications platform based
on a single technical standard," the companies said in a joint statement.
Qualcomm's code division multiple access technology, or CDMA, was first
to market and is deployed widely in the United States and Korea. Ericsson's
technology is based on global system for mobile communications or GSM,
and is being deployed in Asian and European markets. Qualcommm has
argued for a convergence of the two rivaling technologies so that its existing
technology would be compatible with Ericsson's latest offerings. Ericsson
recently proposed a compromise some analysts described as disingenuous.
"We think it's significant that a group of international companies publicly
embrace convergence," said Bill Bold, Qualcomm's vice president of
government affairs.
Others did not think the announcement was all that earth-shaking.
"There wasn't a whole lot there," said Pete Peterson, an analyst with San
Francisco-based Volpe Brown Whelen and Co. "We were wondering
whether there was something coming out later."
Ericsson representatives could not be reached for comment.
The two companies have been in dispute since 1995, when Ericsson
asserted eight patent-infringement complaints against various elements of
Qualcomm's digital-wireless equipment. In October, Ericsson dropped five
of its eight claims, a retreat many saw as a boost to Qualcomm. The case is
scheduled to go to court next year.
"I think the tide is turning against Ericsson," Peterson said.
Moreover, Peterson said the lawsuit has compelled the two companies to
talk about other mutual issues, which may lead to compromise.
"There is direct . . . communication ongoing," Peterson said. "The lawsuit
forces the communication between the two, and they have used the forced
path to at least exchange ideas on other things."
(Copyright 1998)
_____via IntellX_____
Publication Date: December 20, 1998
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