system called Long Term Evolution (LTE). Nokia, the largest handset
manufacturer in the world, and its partners have set up a framework to
keep royalty fes as low as possible, in hopes of making LTE the true
successor to 3G.
Nokia, along with its partners Sony Ericsson, Alacatel-Lucent,
NextWave Wireless, as well as NEC have agreed to charge low license
fees to help with the progression of LTE.
LTE is in competition with Intel’s WiiMax to become the successor to
3G and the next mobile standard. Nokia believes it will be able to be
used for mobile phones, along with broadband connections, replacing
WiFi completely.
LTE allows for wireless systems which run faster, and can go over longer distances.
China and the U.S. will be the first nations to get hooked up with LTE networks.
The agreement reached states that royalties for LTE will come out to less than 10% of the resale price for handsets.
The idea for Nokia and its partners who hold LTE patents is to push
LTE by keeping royalty payments for using the LTE patents as low as
possible, in order to allow more companies to use it.
