Mobile Companies Agree on LTE Licensing

In a move which may bring high-bandwidth mobile wireless services closer to consumers, Mokia, Ericsson, and others have agreed on LTE tech licensing terms.

A number of leading mobile technology companies, including Nokia, Ericsson, Alcatel-Lucent, NextWave Wireless, and Sony-Ericsson have announced they have reached an agreement on a framework for licensing technology related to LTE, a mobile standard that promises to offer consumers high-bandwidth, mobile connectivity. The companies have ironed out a framework they say sets up fair, reasonable, and non-discriminatory licensing for LTE technology that sets an single-digit percentage royalty (or, in the case of notebook computers, a fee under $10) on gear using LTE technology which handles all licensing issues for components of LTE technology. With a standardized royalty framework, LTE is more likely to receive backing from the mobile industry, including mobile operators and device manufacturers.

“The patent licensing market requires basic rules in order to properly develop and function”, said Nokia’s VP for intellectual property Ilkka Rahnasto, in a statement. “Today’s announcement is a step towards establishing more predictable and transparent licensing costs in a manner that enables faster adoption of new technologies.”

The wireless industry generally expected LTE technology to be adopted by a wide majority of the world’s wireless operators, and in North America Verizon has already announced it plans to use its recent 700 MHz spectrum licenses to roll out LTE-based services in the United States. However, the first LTE networks aren’t expected to be available to consumers for a couple years, and many operators may wait even longer. In the meantime, Sprint is pushing ahead with competing WiMax technology; despite rolling back the launch of its nationwide WiMax service Xohm, WiMax technology is available now, giving it a leading edge on LTE.