Motorola to sell mobile phone technology

Motorola plans to sell its wireless chips and technology to rival mobile phone makers for the first time.

Motorola plans to sell its wireless chips and technology to rival mobile phone makers for the first time.

The move marks a change of course in the company's bid to start making money again after cutting 30,000 jobs.

Motorola plans to sell pre-assembled circuit boards containing all of the various wireless chips to be used in third-generation mobile phones - much like the computer industry uses pre-assembled 'motherboards' to make desktop and laptop machines.

The move is significant for a company that has always stressed its technological prowess as a distinguishing factor in its products.

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Motorola executives say the change in philosophy is an admission the innards of most mobile phones are now largely uniform in terms of basic factors such as reception, sound quality and battery life.

Mr Ray Burgess, director of strategy and marketing for Motorola's semiconductor division, said: "The underlying technology features of a cell phone have levelled out."

He said there are probably 300 to 400 components on a wireless motherboard and questions why other firms would waste their time buying and assembling them "when we can do that for you".

"Only Motorola and Nokia have the full know-how to produce a complete phone," Mr Burgess said.

He said the distinguishing factors for phones now revolve around creating new software applications and functions that take advantage of the advanced wireless technologies that network operators are starting to use.

PA