Ericsson, Qualcomm Merge W-CDMA Proposals
By: Robert Keenan, Managing Editor
One of the epic battles in the wireless industry has come to a close today when Ericsson (Stockholm, Sweden) and Qualcomm (San Diego, CA) announced a converged wideband CDMA (W-CDMA) standard for third-generation (3G) wireless systems. In a move that could re-shape the wireless market, these two wireless system and equipment manufacturers entered into a series of definite agreements that resolve all disputes globally between the companies relating to code division multiple access (CDMA) technology.
Under the pacts, Ericsson and Qualcomm have agreed to jointly support a single CDMA standard with three optional modes for the next generation of wireless communications. In addition, the companies will cross license their respective patent portfolios and will settle the existing litigation between the companies. Finally, Ericsson will purchase Qualcomm's terrestrial CDMA wireless infrastructure division, which has operations in San Diego and Boulder, CO.
"Our news today is truly global," says Sven-Christer Nilsson, CEO of Ericsson. "The effects of this deal will be felt all the way to the far corners of the world."
"This agreement is important to the wireless industry and our customers," says Irwin Jacobs, CEO of Qualcomm. Through this agreement, Jacobs says, Qualcomm and Ericsson have smoothed out the path to 3G services.
The Background
Over the past few years, the International Telecommunications Union (ITU; Geneva) has worked toward establishing a single standard for 3G wireless systems. This standard, which has been dubbed IMT-2000, was envisioned to provide ubiquitous wireless service to end users, allowing them to use their wireless phone anywhere in the world.
Last year, the ITU opened its doors to proposals for the upcoming 3G standard. The organization received 13 proposals, which included proposals for wideband CDMA (W-CDMA) and time division multiple access (TDMA) systems.
Initially, many industry professionals felt that W-CDMA would be the winner in the industry. At the time, the two leading proposals were Ericsson's W-CDMA approach and Qualcomm's cdma2000 system.
That's where the worldwide debate began. Industry members were split on which proposal to choose. The debates got so heated that, in December, the ITU threatened to eliminate all CDMA proposals from the ITU specification of the CDMA camps did not settle their disputes and arrive at a single, unified wireless standard (see ITU May Exclude CDMA Proposals from 3G Specs).
The Proposal
After months of working out the details, Qualcomm and Ericsson have met the ITU's request for a single, unified W-CDMA standard for 3G systems. This standard encompasses three optional modes of operation: 1) direct-sequence frequency division duplexing (FDD), 2) multi-carrier FDD, and 3) time-division duplexing (TDD). Each of these modes is designed to support operation with both the GSM MAP switching platform, for GSM systems, and IS-41 switching platform, which is used by both TDMA and CDMA systems.
By offering three modes of operation, the new standard allows carriers to upgrade their current networks to 3G technology without having to roll out and entire new system. In addition, the standard offers the potential for future 3G systems to interoperate around the world.
The Holdup
Intellectual property rights (IPRs) were the main holdup in a converged W-CDMA standard didn't arrive earlier. Through the new agreement, Qualcomm and Ericsson have solved these IPR issues.
The agreement allows Qualcomm and Ericsson to cross license IPRs for all CDMA technologies, including cdmaOne, W-CDMA, and cdma2000. In addition, Qualcomm will receive rights to sublicense certain Ericsson patents to its application-specific IC (ASIC) customers.
The Implications
The new converged proposals will most likely have some strong implications for the wireless market. In particular, Will Strauss, principal analyst at Forward Concepts (Tempe, AZ), a market research firm, says the combined proposal could speed up the implementation of 3G wireless services in the wireless industry. In fact, Strauss says that this agreement may even shorten the life of 2.5G systems, which arose out of the cloudy 3G standards picture.
According to Perry LaForge, executive director of the CDMA Development Group (CDG; Costa Mesa, CA), the converged W-CDMA standard may also be the catalyst for harmonization in the wireless industry. By reaching a harmonized standard, LaForge says the wireless industry will achieve lower R&D costs, worldwide roaming, and stronger competition with landline telecommunication systems.
Harmonization, however, may not yet be obtainable. Last week, the ITU backed away from its single-standard approach for the IMT-2000 specification. During a meeting in Brazil, the international standards body agreed to support multiple standards, including TDMA proposals, for the upcoming 3G specification (See ITU OKs Multiple Standard Approach).
A New Market For Ericsson
Today's announcement also has some interesting implications to the current CDMA market. Under the agreement today, Ericsson, the biggest opponent of CDMA technology, has acquired Qualcomm's terrestrial infrastructure division, thus propelling itself directly into the cdmaOne market.
The new move, according to Strauss, improves Ericsson's worldwide presence in the wireless market. Until now, Ericsson has been a bit confined to Europe. By moving into the CDMA market, Strauss says the company has opened opportunities in the US and foreign markets, such as China.
In addition to making base stations, Ericsson will also develop handsets for the CDMA market. According to Nilsson, these handsets will hit the market next year.
As for Qualcomm, Jacobs says the company will still have a strong presence in the CDMA handset and ASIC market. In addition, Jacobs says Qualcomm will continue to focus efforts in other areas of the company, such as Globalstar and Omni-TRACS.
Tell us your feeling on today's announcement in our current W-CDMA discussion (http://www.wirelessdesignonline.com/cgi-bin/WebX.cgi?10@1.jErLpJZQ^2@.ee6b323).