Mobile rivals settle differences

Qualcomm and Ericsson have ended a feud that threatened to delay the next generation of mobile communications, writes Steve Ranger.

Under the agreement, the companies will settle their outstanding lawsuits, support a single standard for Code Division Multiple Access (CDMA) transmission technology, and cross-license a number of their patents.

Ericsson said it will buy Qualcomm's terrestrial CDMA wireless infrastructure business and research and development facilities, while Qualcomm will concentrate on developing CDMA phones and chipsets.

The companies said they will commit to licensing their next-generation patents to the rest of the industry - previously a sticking point.

The agreements could open the way for faster adoption of the next generation of mobile communications, which will offer high-speed access to the Internet and corporate data applications.

Last year the International Telecommunications Union (ITU) warned that a 'virtual holy war' could destroy hopes for next-generation mobile communications if the stalemate was not resolved. The companies were in conflict over intellectual property rights central to the standard.

David Tade, mobile analyst at Dataquest, said: 'On the whole, it's good news for the ITU and good news for the industry. The standardisation process can continue smoothly and product development can continue. This means a family of standards based on CDMA.'

The companies will support a single standard with three 'modes of operation'.

Ericsson chief executive Sven-Christer Nilsson said this means the suppliers can upgrade existing networks to third generation 'regardless of technology heritage or technology choice.'

Additional reporting by Andrew Craig from VNU Newswire.