Ericsson signs contract for 3G handset platforms with LG Electronics - Business - Brief Article

Wireless Internet, Jan, 2002

The mobile handset business is going through die same sort of transformation that the PC industry underwent years ago, going from a "vertical" industry, with a few companies supplying complete products, to a "horizontal" industry with many specialized companies that each supply pieces of the whole. Ericsson holds the world's largest 2.5G and 3G intellectual property rights portfolio. Part of this portfolio is now offered to the market through Ericsson Mobile Platforms, positioning Ericsson as a leading supplier of the core mobile handset technology.

As part of a recent agreement, LG Electronics now has access to this cutting-edge handset technology in 2.5G and 3G/UMTS. LG Electronics will develop its own value-added GPRS/UMTS Dual Mode 3G handsets based on technology licensed from Ericsson Mobile Platforms, including all component specifications, printed circuit board schematics and software.

This approach enables LG Electronics to launch new products quickly with minimum R&D investment and, at the same time, to come out as a strong supplier of handsets as consumers all over the world are adopting 3G.