Wireless Industry Comes Together On LTE Patent Licenses
LTE is that much closer to becoming a reality, as a number of industry players have agreed to commit to a licensing framework, whereby they would license their patents according to “fair and reasonable” terms.
The group is a veritable who’s who of industry leaders, and includes Alcatel-Lucent, Ericsson, NEC, NextWave Wireless, Nokia, Nokia Siemens Networks, and Sony Ericsson Mobile Communications.
Notably absent from the list is Qualcomm, which earlier this year announced plans to develop LTE chipsets.
Essentially the companies agree in principle to establish “predictable and more transparent maximum aggregate costs for licensing intellectual property rights” that relate to the next-gen wireless technology.
LTE or Long-Term Evolution is a 3GPP (third-generation partnership project) effort to enhance the next generation of UMTS with regard to cost, services, spectrum usage and interoperability.
The technology is designed to speed up network data transfer rates, enabling for example, faster video streaming, photo sharing, and music downloading.
“Today’s announcement is a step towards establishing more predictable and transparent licensing costs in a manner that enables faster adoption of new technologies,” Ilkka Rahnasto, head of Nokia’s intellectual property rights said in a statement.
The agreement calls for licensing royalties to remain at less than 10 percent of the sales price with regard to handsets, and less than 10 dollars in LTE-enabled laptops and notebook computers.
Both AT&T and Verizon have agreed to roll out the next-gen wireless technology, but it doesn’t appear there will be any deployments for at least two years.
“NEC is excited about this initiative. LTE is a key technology in the transformation of voice-oriented telecom services into data-oriented communication services. In partnership with other LTE technology leaders and vendors, NEC, as both an infrastructure and handset provider, must play a crucial role in establishing a better environment in which to explore the LTE market, and we believe this initiative is an important first step,” said Dr. Katsumi Emura, Executive General Manager, Intellectual Asset Management Unit, NEC Corporation in a statement.
“In order to connect five billion people and deal with 100-fold traffic at lowest cost of ownership we need to create economies of scale,” added Stephan Scholz, CTO of Nokia Siemens Networks, “Mobile broadband implementation using technologies with a predictable, transparent maximum aggregate costs for licensing intellectual property rights will drive global adoption and foster social and economical growth.”
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