Nokia has said it will cap 5G patent licensing fees at €3 ($3.48) per device when standards for the new mobile technology are finalised, expected to be later this year.
In a statement made yesterday, August 21, the telecommunications company said that the rate will apply to mobile phones that implement the 5G new radio (NR) standard.
This NR standard will eventually provide for a new air interface for devices and base stations using 5G. This is expected to happen by the end of 2018.
Beyond mobile phones, Nokia said, there will be an unprecedented variety of end user devices that will use 5G, so the company will determine its licensing rates for these categories separately. Nokia will look to engage in “constructive dialogue with relevant industry participants to define the licensing models best suited for those industries”.
In an interview with WIPR earlier this year, Adrian Howes, head of IP and standards, IP regulatory affairs at Nokia, said 5G could allow for control of robots at a distance, for example in medical surgery procedures, while the automotive sector may play an increasingly prominent role in communications.
Ilkka Rahnasto, head of patent business at Nokia, said the announcement is an important step in helping companies to plan for the introduction of 5G/NR-capable mobile phones, with the first commercial launches of such products expected in 2019.
Qualcomm, another player in the 5G field, has said it will apply an effective running royalty rate of 2.275% of the selling price of branded single-mode 5G handsets, while the equivalent rate for branded multi-mode (3G/4G/5G) handsets will be 3.25%.
Meanwhile, industry rival Ericsson has reportedly set a sliding scale of $2.50 to $5 per 5G device, depending on the handset’s price.