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Monday, January 9, 2012

Growth in royalty payments by mobile device manufacturers is starting to slow

​Total royalty payments for GSM, WCDMA and LTE technology on mobile phones are approaching $20 billion (£13 billion) per year, according to a new report from ABI Research. It says the amount paid in licensing fees by manufacturers will continue to grow for the next few years but is starting to flatten out. For example, the growth of 3G means that GSM handset royalties are already playing a much less significant role for royalty revenues.

ABI Research has calculated that vendors pay anything from less than 4% (if they have a very strong patent portfolio with bilateral agreements) to well into the teens for GSM/WCDMA handsets. The average fluctuates between approximately seven and eight per cent.

Philip Solis, research director for mobile networks at ABI Research, said “WWAN royalties on handsets are a significant source of revenue for companies holding the largest amount of essential patents. In addition to being a source of revenue for companies, patents are being used more aggressively for offense and defense against competitors.”

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Opinion Articles

Last week at The Fonecast: 12th August 2013

Welcome to the not-so-silly season

Mark Bridge writes:

August is traditionally known as the ‘silly season’… but last week’s mobile industry news was all very serious. Apple started with a move designed to reassure customers about unsafe iPhone chargers by arranging a discounted exchange scheme – and it ended the week with a patent victory in the USA.

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Dual Core Smartphones only £7.70pm... whatever that means

Mark Bridge writes:

Don't sell the steak – sell the sizzle!  That's the mantra of many salespeople. It's all about emphasising the benefits of a product rather than its features. You don't tell people about the 13 megapixel camera when they ask about the new LG smartphone, you tell them it'll capture the first steps of their precious young nephew in pin-sharp accuracy. Or something like that.

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Mobile retailers waste over £21.6 million a year on unnecessarily sending mobile phones for repair

David Heled of Cellebrite writes:

Smartphones are now by far and away the communication, payment and information device of choice for consumers and enterprises. Sales are set to overtake those of traditional feature phones this year for the first time. However, the increasing complexity of the devices’ technology means that there’s a lot more that can go wrong, and make it harder for mobile retailers to identify potential problems – and it’s costing them millions per every year.

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Last week at The Fonecast: 29th July 2013

Surprises and statistics

Mark Bridge writes:

Google’s big announcement last week involved the company introducing Android v4.3 (as expected), launching a new Nexus 7 tablet (as expected) and also revealing a ‘Chromecast’ HDMI adaptor that’ll stream from most portable devices. That was more of a surprise.

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Top Ofcom tips when taking your smartphone or tablet abroad

Mark Bridge writes:

With the school term over and August just a few days away, UK telecom regulator Ofcom has published a new guide to help travellers avoid ‘bill shock’ after using their mobile phones, tablets and laptops abroad.

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A month of mobile: O2 counts on 3, Microsoft counts to 10 and Apple counts its profits

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We're back with a month of mobile industry news, including takeover talks and takeover rumours. O2 and Three are said to be discussing a merger... but is there any truth in the suggestions that BlackBerry could be up for grabs?

We also discuss Apple's record-breaking quarterly figures, the highlights of CES and the launch of Microsoft Windows 10, as well as saying farewell to the current version of Google Glass.

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