To help speed up 4G technology’s global adoption, Nortel published a competitive handset royalty rate of about 1% subject to terms for its portfolio of LTE standards-essential patents.
With first LTE deployments expected to begin as early as next year, operators are investigating the business case for 4G wireless technology to meet demand for higher-bandwidth mobile services. Nortel said it wanted to publish its rate so as to provide transparency and predictability of IPR costs. By doing so, it will help prevent uncertainties in handset costs that could slow the growth of the 4G market.
Removing this unknown of LTE IPR handset licensing costs is expected to encourage LTE business cases and reduce the risks of early deployment.
According to Scott Wickware, vice president of marketing and strategy for Nortel’s carrier networks, all patent holders making royalty rates available could help provide handset suppliers with IPR cost predictability. That in turn should encourage early adoption of LTE and a healthy ecosystem from which service providers can build a strong business case for LTE deployment.
Nortel’s rate for patent value is one of the first to be voluntarily published.