Displaying items by tag: Unfair

US chipmaker Qualcomm has robustly defended its business practices as the antitrust lawsuit against them draws to a close.

In their closing testimony Qualcomm declared that the US Federal Trade Commission (FTC) had ultimately failed to prove that the chipmaker’s business practices had harmed its competitors during the course of the trial.

FTC have alleged that Qualcomm used its market dominance in its smartphone chip development to force phone suppliers to pay higher patent licensing fees, in other words it claims the company which is headquartered in San Diego had an unfair monopoly.

Both parties now must wait for the ruling from the judiciary, although reports have suggested that the decision is not likely to be delivered any time soon.

In a statement which summarized Qualcomm’s closing argument in court, the company’s EVP and general counsel Don Rosenberg said the FTC hasn’t come close to meeting its burden of proof in this case.

Rosenberg said, “All real-world evidence presented at trial showed how Qualcomm’s years of R&D and innovation fostered competition, and growth for the entire mobile economy to the benefit of consumers around the world.”

In addition to this, Rosenberg highlighted that Qualcomm’s licensing rates were established long before it had set up its lucrative chip business and accurately reflected the value of its comprehensive patent portfolio.

The FTC closed their arguments by stressing to the judiciary that the powerful chipmaker had used its muscle and dominance in the 3G and 4G chip market to force smartphone manufacturers like Apple to sing licensing agreements with excessively high royalties.

Prosecutors on behalf of FTC argued this approach would continue in the 5G era if Qualcomm isn’t stopped.

During the trial, the FTC called witnesses from a number of handset companies including Apple, Samsung, Intel and Huawei to testify that Qualcomm had used unfair practices, harming competition in the industry.

Published in Telecom Vendors

Mexico’s leading telecommunications operator has expressed its anger at rules introduced by the country’s telecommunication regulatory authority. America Movil, which is the world’s fourth largest mobile operators in terms of mobile equity subscribers, and is spearheaded by Mexican billionaire Carlos Slim.

However, Slim has vehemently voiced his opposition to the changes in regulatory policy which he believes are unfair towards his organization, and that it has subsequently led to a loss of its business rights. It’s the last chapter in what has been a complicated process in terms of reshaping the telecommunications industry in Mexico.

Reports are suggesting that the Supreme Court are considering whether to undo parts of an overhaul that blatantly tilted the playing field against the dominant force in Mexican telecommunications which is America Movil. The regulatory changes has led to a steep drop in prices in what Mexican citizens pay for cell phone services and internet access, which has rather inevitably been welcomed by Mexicans.

Legal representation for Slim have described the rule changes as ‘asymmetrical’ and ‘unfair’ which prohibit American Movil from charging other carriers for connecting their calls made to customers on their network, but let those same companies charge America Movil for connecting its calls to their customers.

In a statement released to the press, American Movil described this practice which has been applied to America Movil as the ‘zero-tariff’ - and has undermined the power of the sector’s regulator IFT as well as the rights of America Movil units Telmex and Telcel under past concessions awarded to them by the government.

In addition to this, the Mexican operator claims that it has been harmed by the loss of its rights to cost recovery, economic stability, and financial balance granted by the concessions. "Asymmetrical (rules) does not mean free," the company said in the statement.

Figures released from the telco sector in Mexico indicate that America Movil holds over two-thirds of the country’s mobile subscriptions. However, political commentators have described the landmark telecommunications reform as a huge political victory for Mexican President Enrique Pena Nieto. The Supreme Court has not disclosed when it might rule on the case.

Published in Telecom Operators