Intel, Nokia ink broad mobile alliance
The non-exclusive Intel and Nokia partnership includes collaboration in several open-source mobile Linux software projects. Intel will also acquire a Nokia HSPA/3G modem IP license for use in future products as part of the deal.
By Suzanne Deffree, Managing Editor, News -- EDN, June 23, 2009
Intel Corp and Nokia today announced a long-term relationship to develop a new class of Intel Architecture-based mobile computing device and chipset architectures for the top handset supplier's products.
The agreement expands a longstanding relationship between the two companies, which they expect it to define a new mobile platform beyond today's smartphones, notebooks and netbooks, for the development of a variety of hardware, software, and mobile Internet services.
The non-exclusive Intel and Nokia partnership includes collaboration in several open-source mobile Linux software projects. Intel will also acquire a Nokia HSPA/3G modem IP license for use in future products as part of the deal.
"This Intel and Nokia collaboration unites and focuses many of the brightest computing and communications minds in the world, and will ultimately deliver open and standards-based technologies, which history shows drive rapid innovation, adoption, and consumer choice," said Anand Chandrasekher, Intel senior VP and general manager of the company's ultra mobility group, in a statement. "With the convergence of the Internet and mobility as the team's only barrier, I can only imagine the innovation that will come out of our unique relationship with Nokia. The possibilities are endless."
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The partnership will allow Intel to further expand its reach beyond PCs, a stated goal of the company as it already holds more than 80% of the market's share. Moreover, Intel has been a big proponent of mobility and PC convergence since its 2003 Centrino Wi-Fi launch and has made considerable investment in other wireless technologies, including WiMax, in recent years. Indeed, the company reignited its interest in the handheld device space in its fall 2007 Intel Developers Forum, then dubbing the terms mobile Internet devices (MID) and ultra mobile PCs (UMPC).
"We consider this news constructive for Intel," Tim Luke, a semiconductor market analyst at Barclays Capital, said in a research note this morning. "From a semiconductor perspective, we view the initiation of an alliance between Intel and the world's largest handset vendor as a clear strategic positive." Luke further said that initial unit volumes associated with partnership's offerings are expected to be modest.
While Intel and Nokia did not disclose specific products or even categories, industry speculation suggests the initial focus of the agreement will be on next-generation Internet tablets. The current Nokia N810 tablet uses an OMAP processor from Texas Instrument, one of Nokia's suppliers. Luke said Intel's Atom processor may supplant TI in future versions of the tablet and noted that the Internet tablets do not include a baseband. Barclays does not believe Nokia's Internet tablet series -- the 770, 800, and 810 -- has yet generated material unit volume.
"Nokia's collaboration with Intel also underlines the broader theme of convergence between the world's of computing and mobility," Luke said. "We would expect new netbook/smartbook offerings in coming months from other traditional handset vendors such as Motorola, Samsung, and LG. Intel announced a MID deal with Korean handset maker LG at the Mobile World Congress in Barcelona in February of this year, with the launch of the first Intel MID by LG expected in 2010. In addition, we expect traditional PC players such as Acer, Asus, Dell, and HP to come forward with smartbook/smartphone like devices using applications processors from Intel, Qualcomm, and Nvidia in the next few months."
According to Kai Öistämö, Nokia's executive VP of devices, the two partners will "explore new ideas in designs, materials, and displays that will go far beyond devices and services on the market today. This collaboration will be compelling not only for our companies, but also for our industries, our partners and, of course, for consumers."
Specific to the open-source software collaboration side of the effort, Intel and Nokia made note of plans to develop common technologies for use in the Moblin and Maemo platform projects, which are expected to will deliver Linux-based operating systems for future mobile computing devices.
The companies also said they are coordinating their open-source technology selection and development investments, including alignment on a range of key open-source technologies for mobile computing including oFono, ConnMan, Mozilla, X.Org, BlueZ, D-BUS, Tracker, GStreamer, and PulseAudio. Intel and Nokia believe that collectively these technologies will provide an open-source standards-based means to deliver a wealth of mobile Internet and communication experiences, with rich graphics and multimedia capabilities.
As to Intel's license of Nokia's HSPA/3G modem technologies, the companies said the agreement will allow the combination of 3GPP modem technology and future Intel Architecture-based platforms.
In should be noted that Intel supports multiple mobile broadband standards on its platforms. Nokia believes its modem license complements Intel's broadband wireless technologies and will allow the company to extend chipset solutions incorporating Nokia's modem technologies across its mobility offerings in the future.
Nokia noted that it is continuing to develop its modem technology, which includes protocol software and related digital design for the full suite of 3GPP standards through WCDMA/GSM and its evolution, and then licenses the technology to chipset manufacturers to develop and produce chipsets for device manufacturers.
Nokia has established licensing agreements with companies that make Intel-competing technologies, including ARM-based technologies, for its mobile devices. Nokia does not believe the partnership will negatively impact its relationships with its ARM licensees.
EDN Senior Technical Editor Brian Dipert contributed to this story.
