What Is the Value of Nortel's LTE Patents?

in News, LTE

July 05, 2009| Nortel may be trying to sell its LTE R&D unit to Nokia Siemens (NOK, SI) but there’s a lot of chatter about what’s not part of the deal: some LTE patents.The talk was triggered by a recent estimate from JP Morgan Chase analyst Ehud Gelblum could be worth as much as $2.9-billion in terms of royalty payments.

According to LightReading, Gelblum calculates that “if Nortel (or whoever ends up owning the IPR) collects 1% of every relevant LTE device sale price in the coming years (based on the assumption that LTE has a lifespan of 15 years and with a 10% discount rate), the IPR is worth just over $2.9 billion.

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