Skip to main content

High IPR Costs Affecting 3G Market

The mobile industry could spend $80-100 billion on WCDMA-IP-royalty payments up to 2017, sparking fears about the future of second-tier vendors and the level of innovation entering the 3G market. Mounting concern that royalty payments will soon approach 25-30 percent of the vendor's average selling price has prompted operators to approach the GSM Association for support in a bid to limit payments to a
single-digit figure. According to Informa Telecoms and Media, "the cost of so-called essential IPRs could skyrocket if leading vendors do not agree to the single-digit cap. The issue is compounded by Nokia-backed research that states Qualcomm �- which has already agreed a royalty rate of between 4.65 and 6 percent with some handset vendors �- does not hold as many essential IPRs as it claims to." If the other main IPR holders �- Nokia, Motorola, and Ericsson -� license their patents at a similar level to Qualcomm, it will lead to a rise in the cost of the basic technologies required to produce 3G mobile devices.

Popular posts from this blog

Global Rise of Domestic Payment Ecosystems

Alternative Payment Methods (APMs) – comprising digital wallets, instant payments, and QR payment systems – are experiencing explosive growth that's reshaping the global financial services marketplace. According to the latest worldwide market study by ABI Research , the combined global transaction value for APMs is projected to reach $142 trillion by 2030. What's particularly fascinating is the underlying driver behind this trend: a growing desire for financial sovereignty, with nations developing domestic payment ecosystems rather than remaining dependent on international financial networks. Payment Ecosystem Market Development In 2024, approximately 45 percent of the global population used digital wallets – a remarkable adoption rate for a technology that barely existed a decade ago. China leads this transition, with 95 percent of its population using WeChat's payment functionality. WeChat exemplifies the "super app" phenomenon, where payment capabilities are in...