Wednesday, May 30, 2007

Nokia Warns that Qualcomm Dispute Harms WCDMA Sales

Nokia has warned that its ongoing patent dispute with Qualcomm could be holding up the adoption of WCDMA devices and services. Speaking at a news conference in South Korea, Chief Technology Officer Tero Ojanpera warned that the dispute was leaving a door open for rival technologies such as WiMAX.

"This whole discussion might have an impact on 3G technology," he said, adding alternative technologies such as mobile WiMax were gaining momentum due to uncertainties surrounding the licenses." reported the Reuters news agency.

"3G is not about cheap price but about new capabilities," said Ojanpera, when asked by Reuters about its 3G phone pricing policy on the sidelines of the Seoul event. "It's not the first priority to have a cheap phone."

Nokia and Qualcomm have been stuck in legal battles for well over a year - but the activity increased after a licensing agreement expired last month, although Nokia has made an interim payment which Qualcomm is disputing.

Analysts estimate Nokia has paid Qualcomm around $500 million per year and now aims to get a better deal.

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