Tuesday, June 12, 2007

US bans cellphones

A federal agency has <A HREF="http://www.nytimes.com/2007/06/08/business/08phone-web.html?_r=3&oref=slogin&oref=slogin&oref=slogin">banned imports of new cellphones</A> made with Qualcomm semiconductors because the chips violate a patent held by Broadcom.

The International Trade Commission said the import ban would not apply to mobile phone models that were imported on or before June 7.

The ruling is a blow to Qualcomm, to wireless handset makers like Motorola and Samsung, and to service providers like Verizon Wireless, SprintNextel and AT&T.

All three service providers sell phones that rely on Qualcomm chips for access to their high-speed data networks, and 80 percent of the phones sold by Verizon use Qualcomm's technology. Analysts say the decision could also result in higher prices for cellphone users as companies pass along the costs of switching to the new technology. [Ed. Note: It remains to be seen how this will affect upcoming devices such as the HTC Advantage, HTC Shift, Verizon XV6800, and E-TEN Glofiish X800.]

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