Nokia Reveals Licensing Costs for Patented 5G Technology

By Nitish Singh / August 22, 2018

Nokia’s contributions to the world of mobile technology are unparalleled. The Finnish telecommunications company revealed that it expects €3 in royalties for every 5G smartphone that is sold. Nokia has been a major part of developing the technology and holds a number of Standard Essential Patents for 5G technology. The company believes that their quoted price is fair and reflects the value of the technology which will soon be making it into handsets starting next year.

With many disputes between companies rising due to high royalty rates, Nokia seeks to avoid any controversies by asking for a nominal amount per smartphone. With over a billion smartphones shipped in 2017 and the market constantly growing, Nokia can generate a significant amount of revenue from their patents.

Head of patent business Ilkka Rahnasto revealed “Nokia innovation combined with our commitment to open standardization has helped build the networks of today and lay the foundations for 5G/NR. This announcement is an important step in helping companies plan for the introduction of 5G/NR capable mobile phones, with the first commercial launches expected in 2019.”

Nokia did not assign licensing rates for devices like laptops, PCs, routers and other telecommunications equipment yet and they will be determined separately on a later date. Fixed Wireless Access for 5G is set to go live later this year in the United States for broadband services, and 5G smartphones are set for release next year.

Chipset manufacturers like Qualcomm are ready to ship SoCs for upcoming smartphones. It will take a while until mobile carriers implement the technology and offer 5G connectivity for their users and infrastructural work is already underway for many carriers all over the world.

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