January 18, 2002
By this agreement, LG Electronics gets access to Ericsson's cutting edge handset technology in 2.5G and 3G/UMTS. LG Electronics is one of the major players in the wireless industry and the deal is a proof of Ericsson's superior technology in the field.
"We are confident that this flexible offering from Ericsson will enable LG Electronics to develop state-of-the-art products and services," says Tord Wingren, president of Ericsson Mobile Platforms. "The agreement gives a boost to the 3G handset market and is the second agreement for Ericsson Mobile Platforms, with Sony Ericsson as the first customer."
LG Electronics develops its own value added GPRS/UMTS Dual Mode 3G handsets based on Ericsson's technology and pays Ericsson Mobile Platforms a license fee for the technology.
The mobile handset business is under transformation. It is going through the same change as the PC industry did earlier, from a 'vertical' industry with a few companies that supply the complete products to a 'horizontal' industry with many specialized companies, each supplying their part of the products. Ericsson holds the world's largest 2.5G and 3G IPR (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.
The technology platforms include all component specifications, printed circuit board schematics and software, and are ready for customization by the manufacturer. 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 when consumers all over the world take on 3G.
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