Qualcomm Inc (QCOM)

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Finland/US: Nokia's CDMA royalties EUR 210mn per year
Telecom&Mobility news

http://e.finland.fi/netcomm/news/showarticle.asp?intNWSAID=44575

Helsinki, 30 November, 2005 — According to Forbes Magazine, Nokia has paid Qualcomm royalties of approximately EUR 210mn annually for the use of CDMA technology. The sum will increase in future, when the share of 3G mobile phones rises to about 10% in the world markets.

According to market researchers, mobile phone manufacturers will have to pay Qualcomm royalties of EUR 8.5 per every phone that uses WCDMA technology. The royalty sum will account for approximately 10% of the phone's production costs.

According to Forbes Magazine, it is likely that the large phone manufacturers, such as Nokia and Motorola, will try to find a way to avoid paying the CDMA royalties. Intel's WIMAX broadband technology is an option.