MWC - Nokia Qualcomm tie up after years in court

Nokia will use Qualcomm's chips in its advanced cellphones

The cooperation gives Qualcomm access to a major share of the smartphone market, and enables Nokia to cut its lower production costs.

“Qualcomm needs Nokia as much as Nokia needs Qualcomm,” said Carolina Milanesi, a Gartner analyst.

The deal marks the first time Nokia will use Qualcomm chipsets in its 3G phones, and brings the firms closer after years of bitter disputes over intellectual property rights and royalty payments.

“We are very very excited about this opportunity,” said Andrew Gilbert, head of Qualcomm's European business. “We are going to compete for as much of their business as we can.”

Nokia's key suppliers of 3G chipsets have been Texas Instruments and STMicro, which has spun off wireless chips into a joint venture with Ericsson.

Nokia and the new ST-Ericsson venture said on Tuesday they would cooperate on providing ST-Ericsson's U8500 chips for 3G smartphones using Symbian foundation software.

Nokia said it will also use 3G chipsets from Broadcom, its current supplier of 2G technology chips.

Nokia and Qualcomm agreed last July to a 15-year settlement that included a €1.7 billion euro payment from Nokia, ending a three-year legal battle where the firms raised dozens of cases against each other on three continents.

Nokia said it would introduce the first model using a Qualcomm chipset and Nokia's software in the middle of next year.

The 3G phones will be launched for the North American market first and will run on the Symbian operating system.

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