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By Tony Hallett, 26 March 1999 16:19

NEWS Ericsson and Qualcomm yesterday said they have settled their long running dispute over standards for next-generation (3G) mobile phones. The deal will see Ericsson buy the Qualcomm unit that makes mobile CDMA (code-division multiple access) infrastructure equipment. The manufacturers have also entered into a patent cross-licensing agreement. The International Telecommunications Union (ITU) had been trying to bring both sides together - with little luck - for several years. Both companies have claimed in the past that their versions of CDMA - WCDMA (wideband) in Ericsson's case, CDMA2000 from Qualcomm - would be better for future 3G mobile devices. WCDMA had won backing in Europe and Asia, while the US - a market that has traditionally lived with a more fragmented line-up of mobile standards - seemed to be heading towards CDMA2000. But users have welcomed today's agreement. David Harrington, director general of the Telecommunications Managers Association (TMA), told Silicon.com: "It's deplorable that users have to consider the use of multi-standard phones - with the associated costs - if they want to roam freely, especially as roaming becomes more common. I welcome industry players putting their heads together on standards." In a press release, Ericsson president and CEO, Sven-Christer Nilsson, said Ericsson now has "complete 3G competence". The Swedish manufacturer now plans to establish a global CDMA centre in San Diego, California. Henry Harrison, 3G analyst at telecoms consultancy Schema, said: "This is good in as much as it will allow these companies to start considering the real issues - who will be using these services and what kind of services will be offered." However, Harrison pointed out that on the network side, there will still be differences between 3G in Europe and the US, where GSM MAP and ANSI-41 are the respective network standards, and because of the way the spectrum is currently allocated. Financial details of the deal were not disclosed.