Will WiMAX deliver on its royalty promises?
6 February 2008
News
One of the major advantages claimed by the WiMAX community over their cellular cousins is that WiMAX will come with a far lower average royalty rate than either LTE (long-term evolution) or UMB (ultra-mobile broadband). A favourite phrase among the WiMAX OEM community is that WiMAX has effectively 'democratised' the 4G space. Although ABI Research applauds the move to a more widespread intellectual property holding in the 4G realm, it could be argued that this democratisation of IP will result in more, not fewer, IP royalties.
As ABI Research director Stuart Carlaw points out, "The diversification of IP holdings in 4G technologies and especially WiMAX is something of a double-edged sword. On one hand, the number of companies with vested interests in the technologies' success is far greater; on the other hand, the number of companies likely to succeed in any market is apt to be far smaller than the number of companies that hold IP. The only vehicle left for them to recoup R&D dollars is to look for revenue from licences."
Considering that Ericsson and Qualcomm are not supporters of WiMAX and hold IP that is highly relevant to all 4G technologies, it is most likely that there will be little difference in the royalty rates experienced in all 4G standards. More importantly, 4G technologies are likely to see similar royalty rates to those for 3G devices no matter the efforts of NGMN (next generation mobile networks), EU legislation and similar initiatives. According to Carlaw, "The industry should be braced to expect royalty rates for 4G technologies in the range of 4,8% to 7,7%, with the best position being somewhere around 3,2%."
ABI Research's recent study: '4G Intellectual Property and Royalties', provides in-depth analysis of the IP landscape for 4G technologies with particular focus on LTE, WiMAX and UMB, along with an analysis of the foundation technologies such as beam-forming, fast power control, hybrid ARQ, MIMO, OFDM, OFDMA, SC-FDMA and SDMA. The report includes an analysis of the potential royalty scenarios associated with 4G terminals.
For more information visit www.abiresearch.com
Further reading:
Rooibos heads to space
News
A South African scientific initiative linking agriculture and space research has officially launched today with the Rooibos in Space programme at Parklands College’s Innovation Centre in Cape Town.
Read more...
From the editor's desk: Local can be international
Technews Publishing
Editor's Choice News
Welcome to the July 2026 issue of
Dataweek. As you can see from this introduction,
Dataweek’s regular editor, Peter Howells, is on extended leave and I am filling the void in his editor’s column – hopefully without being too boring.
Read more...
Landis+Gyr EMEA introduces new company name: EYKON
News
EYKON is the new company name of Landis+Gyr EMEA, formerly part of the Landis+Gyr Group. The company supports electricity, gas, water and thermal utilities in managing increasingly complex networks, improving operational efficiency and enabling more sustainable use of resources.
Read more...
Yamaha Robotics will show visitors to EFX
Manufacturing / Production Technology, Hardware & Services News
Yamaha Robotics will show visitors to EFX 2026, the Expo for Electronics Manufacturing, in Stuttgart from 6-8 October 2026, how advanced surface-mount automation helps companies grow their business and increase productivity.
Read more...
From the editor's desk: The art of measuring the truth
Technews Publishing
Editor's Choice News
All electronic measurements are a lie. The trick is making the lie as small as possible.
Read more...
TSE has relocated
News
The Technology Station in Electronics (TSE) has entered a new chapter with its relocation from the CSIR campus to TUT-owned building at Ditsela Place in Hatfield.
Read more...
Innovative MyLegrand app
RS South Africa
News
Legrand SA is set to launch the MyLegrand mobile application, a digital platform designed to strengthen engagement across its professional network.
Read more...
Kulani Energy acquires critical assets from Optipower
News
Kulani Energy preserves engineering, procurement, and construction capability and positions a wholly women-owned firm at the forefront of South Africa’s grid expansion.
Read more...
From Cape Town to Johannesburg
News
Würth Elektronik South Africa has taken a significant step forward with its recent relocation from Cape Town to Johannesburg, marking a new phase of growth and ambition for the company.
Read more...
Lesley Havenga: Building partnerships for Africa’s electronics future
Editor's Choice News
As Würth Electronik expands its footprint across South Africa and the broader sub-Saharan region, Havenga’s blend of manufacturing expertise, supply chain knowledge, and people-centred leadership appears well suited to the task.
Read more...
printer friendly version