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Technology Stocks : Qualcomm Moderated Thread - please read rules before posting -- Ignore unavailable to you. Want to Upgrade?

To: foundation who wrote (22473)	5/10/2002 9:06:14 AM
From: foundation	Respond to of 196977

European press perceptions sway - ========== Nokia Calls For IPR Limit (10/05/2002, BWCS Staff) Nokia has taken the unprecedented step of calling for an industry-wide cap of 5% on patent royalties relating to WCDMA. Nokia’s proposal highlights the mounting concern within the mobile industry that the take-up of 3G services is going to fall well short of expectations. With demand for 2.5G GPRS services still to take off the mass market for 3G services is now thought to be at least three years away. As a result many mobile companies are looking to reduce their capital expenditure on WCDMA technology. Nokia itself holds more than 25% of patents relating to WCDMA technology and is thought to have some support from several rival manufacturers for its patent cap proposal but without the backing of all WCDMA patent holders it will be unable to enforce a 5% royalty limit. Nokia, like other 3G vendors and mobile operators, has already entered into binding agreements regarding patents on core CDMA technology with US-based Qualcomm. As the US manufacturer is promoting the rival 3G standard cdma2000 there is little prospect of it renegotiating its royalty payments with the WCDMA vendors. Meanwhile in Japan where WCDMA and cdma2000 are now battling head-to-head for 3G subscribers the Qualcomm-backed technology is already outpacing its rival. KDDI’s au Group launched cdma2000 services on 1 April and by the end of the month the company had signed up 330,000 3G subscribers. At the same date NTT DoCoMo reported 105,500 customers to its WCDMA service FOMA which was launched last October. bwcs.com