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Nokia and Qualcomm Enter Into a new Agreement may Benefit Market from Innovation and Technologies
:: 24 July, 2008
Nokia and Qualcomm announced that they have entered into a new agreement covering various standards including GSM, EDGE, CDMA, WCDMA, HSDPA, OFDM, WiMax, LTE and other technologies. The agreement will result in settlement of all litigation between the companies, including the withdrawal by Nokia of its complaint to the European Commission.
Under the terms of the new 15 year agreement, Nokia has been granted a license under all Qualcomm's patents for use in Nokia's mobile devices and Nokia Siemens Networks infrastructure equipment. Further, Nokia has agreed not to use any of its patents directly against Qualcomm, enabling Qualcomm to integrate Nokia's technology into Qualcomm's chipsets. The financial structure of the settlement includes an up-front payment and on-going royalties payable to Qualcomm. Nokia has agreed to assign ownership of a number of patents to Qualcomm, including patents declared as essential to WCDMA, GSM and OFDMA. The specific terms are confidential.
"We believe that this agreement is positive for the industry, enabling the market to benefit from innovation and new technologies," said Olli-Pekka Kallasvuo, CEO of Nokia Corporation. "The positive financial impact of this agreement is within Nokia's original expectations and fully reflects our leading intellectual property and market positions."
"I'm very pleased that we have come to this important agreement." said Paul Jacobs, CEO of Qualcomm. "The terms of the new license agreement, including the financial and other value provided to Qualcomm, reflect our strong intellectual property position across many current and future generation technologies. This agreement paves the way for enhanced opportunities between the companies in a number of areas."
About Nokia
Nokia is the world leader in mobility, driving the transformation and growth of the converging Internet and communications industries. We make a wide range of mobile devices with services and software that enable people to experience music, navigation, video, television, imaging, games, business mobility and more. Developing and growing our offering of consumer Internet services, as well as our enterprise solutions and software, is a key area of focus. We also provide equipment, solutions and services for communications networks through Nokia Siemens Networks.
About Qualcomm
Qualcomm Incorporated (www.qualcomm.com) is a leader in developing and delivering innovative digital wireless communications products and services based on CDMA and other advanced technologies. Headquartered in San Diego, Calif., Qualcomm is included in the S&P 500 Index and is a 2008 FORTUNE 500® company traded on The Nasdaq Stock Market® under the ticker symbol QCOM.
About Global System for Mobile Communications
Global System for Mobile communications is the most popular standard for mobile phones in the world. Its promoter, the GSM Association, estimates that 82% of the global mobile market uses the standard. GSM is used by over 3 billion people across more than 212 countries and territories. Its ubiquity makes international roaming very common between mobile phone operators, enabling subscribers to use their phones in many parts of the world. GSM differs from its predecessors in that both signalling and speech channels are digital, and thus is considered a second generation (2G) mobile phone system. This has also meant that data communication was easy to build into the system.
The ubiquity of the GSM standard has been an advantage to both consumers (who benefit from the ability to roam and switch carriers without switching phones) and also to network operators (who can choose equipment from any of the many vendors implementing GSM). GSM also pioneered a low-cost, to the network carrier, alternative to voice calls, the Short message service (SMS, also called "text messaging"), which is now supported on other mobile standards as well. Another advantage is that the standard includes one worldwide Emergency telephone number, 112[5]. This makes it easier for international travellers to connect to emergency services without knowing the local emergency number.
Newer versions of the standard were backward-compatible with the original GSM phones. For example, Release '97 of the standard added packet data capabilities, by means of General Packet Radio Service (GPRS). Release '99 introduced higher speed data transmission using Enhanced Data Rates for GSM Evolution (EDGE).
GSM was designed with a moderate level of security. The system was designed to authenticate the subscriber using a pre-shared key and challenge-response. Communications between the subscriber and the base station can be encrypted. The development of UMTS introduces an optional USIM, that uses a longer authentication key to give greater security, as well as mutually authenticating the network and the user - whereas GSM only authenticated the user to the network (and not vice versa). The security model therefore offers confidentiality and authentication, but limited authorization capabilities, and no non-repudiation. GSM uses several cryptographic algorithms for security. The A5/1 and A5/2 stream ciphers are used for ensuring over-the-air voice privacy. A5/1 was developed first and is a stronger algorithm used within Europe and the United States; A5/2 is weaker and used in other countries. Serious weaknesses have been found in both algorithms: it is possible to break A5/2 in real-time with a ciphertext-only attack, and in February 2008, Pico Computing, Inc revealed its ability and plans to commercialize FPGAs that allow A5/1 to be broken with a rainbow table attack. The system supports multiple algorithms so operators may replace that cipher with a stronger one.
About Code Division Multiple Access
Code division multiple access (CDMA) is a channel access method utilized by various radio communication technologies. It should not be confused with the mobile phone standards called cdmaOne and CDMA2000 (which are often referred to as simply "CDMA"), that use CDMA as their underlying channel access methods.
One of the basic concepts in data communication is the idea of allowing several transmitters to send information simultaneously over a single communication channel. This allows several users to share a bandwidth of frequencies. This concept is called multiplexing. CDMA employs spread-spectrum technology and a special coding scheme (where each transmitter is assigned a code) to allow multiple users to be multiplexed over the same physical channel. By contrast, time division multiple access (TDMA) divides access by time, while frequency-division multiple access (FDMA) divides it by frequency. CDMA is a form of "spread-spectrum" signaling, since the modulated coded signal has a much higher data bandwidth than the data being communicated.
An analogy to the problem of multiple access is a room (channel) in which people wish to communicate with each other. To avoid confusion, people could take turns speaking (time division), speak at different pitches (frequency division), or speak in different directions (spatial division). In CDMA, they would speak different languages. People speaking the same language can understand each other, but not other people. Similarly, in radio CDMA, each group of users is given a shared code. Many codes occupy the same channel, but only users associated with a particular code can understand each other.
