Cell Phone Industry?

[Jomacinrow]

I googled Cell Phone manfactuering Liscening and couldnt find anything.

Who Pays Who money for technology and it's use?

Does the Carrier pay the phone manfactuer MORE or the phone manfactuer pay the Carrier MORE?

Like if someone wants to starting making cell phones, what licenses would they need? Are there patents out there that govern their use and how would new cell phone makers to enter the market?

Hope that makes sense, thanks for answers?

[DigitalPalette]

Does the Carrier pay the phone manfactuer MORE or the phone manfactuer pay the Carrier MORE?

Why would the manufactuer who already takes on the cost of making a product PAY the carrier to sell it? No, the carrier may get bulk price discounts but if anything they take the loss on selling them low. That is why carriers always try to use contracts because what they loose selling the phone under price can be made back.

Are there patents out there that govern the use of new cell phone makers to enter the market?

Patents protect intellectual property by law, however I don't believe you fully understand this topic just by the way the question is phrased. Wikipedia "U.S. Patent" or whichever country you are from to learn more.


Overall, cell phone manufacturing has a VERY steep barrier of entry as far as start up cost. It may not be wise to tackle even if you had the capital as the industry is very volitile at the moment.

[Jomacinrow]

Thanks for the reply.

I know what patents is, but Im unsure if Cell phones fall under this carrier, as there are a lot of makers out there and would seem there would be quite a few less makers out there if all of them are Required to license the GSM / CDMA technology?

Compare it to the PC world, does Dell pay royales to Intel/AMD as opposed to just buying the chip, and be done with any future compensation??

[DigitalPalette]

The manufactuers must match certain requirments for the GSM technology etc.. From what I can tell each new phone undergoes an application process where their hardware and software is reviewed before release.

Dell pays royalty fees to use the AMD inside of their final product. The carrier offers a service not a product therefore can use many manufactuers phones. When you pay the carrier you are paying for use of this service unless your are explicitly purchasing the phone as retail product. Hope this helps explain it to you.

[Jomacinrow]

Edit posts doesnt seem to work:

Thanks for the reply.

I know what patents is, but Im unsure if Cell phones fall under this CATEGORY, as there are a lot of makers out there and would seem there would be quite a few less makers out there if all of them are Required to license the GSM / CDMA technology?

Compare it to the PC world, does Dell pay royales to Intel/AMD as opposed to just buying the chip, and be done with any future compensation??

[BarbaraKParker]

Cell phones are the hottest items today and the cell phone industry is the latest big time addition to the world of network
marketing.