Korean electronics firm Samsung has licensed the rights to Ericsson’s 2G and 3G technology. Samsung will be able to use all Ericsson’s patented technology for network infrastructure and handsets using the GSM, GPRS, EDGE and W-CDMA standards.
At present, Samsung mostly produces devices using GSM’s rival 2G standard, CDMA. This has limited its presence in Europe, in much of Asia and in the developing world. The new deal should help Samsung overcome this handicap.
This deal is the first major sale for Ericsson’s recently created technology licensing unit, which aims to bring in new revenues for the troubled telecoms firm. But while it brings in useful cash for now, Ericsson could be at risk of seeing its own future business suffer at the hands of its licensees.