Nokia Advocates Industry-wide Commitment to 5% Cumulative IPR Royalty For WCDMA

date: May 8, 2002

Highlighting the fact that WCDMA technology has been adopted by the vast majority of mobile operators worldwide and is fast emerging as the global standard of choice for 3G, Nokia is advocating an industry-wide commitment that royalty rates for the 3G technology should not exceed 5% cumulatively.

Under this proposal no manufacturer should pay more than 5% royalties covering all essential WCDMA patents from all patent holders.

With thousands of WCDMA base stations already deployed by network suppliers -- and more being installed every day -- Nokia sees the 3G market moving ahead with full speed and feels that setting a target for cumulative royalty rates for WCDMA patents at 5% will further promote the growth of the mobile industry, support sustainable competitive business opportunities, and usher in a new and exciting era of mobile services and applications.

Nokia is the number one IPR holder in the WCDMA standard and technology, with more than 25% of the essential patents registered so far with the European Telecommunications Standards Institute (ETSI), Association of Radio Industries and Businesses (ARIB), and Telecommunications Technology Committee (TTC) standardization bodies. Nokia is committed to licensing its essential patents under fair, reasonable and non-discriminatory terms, subject to reciprocity.

With licensing arrangements already in place with several major companies, Nokia is continuing active discussions with a number of parties with the aim of reaching reasonable and sustainable license arrangements. Nokia's position and belief is that proposed five percent cumulative royalty level has been well received and supported by most major vendors and operators. Because the 5% cumulative royalty will make WCDMA technology very competitive also from the IPR point of view, it keeps the standard open for all contributing companies to join.

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