UPDATE:
I just listened to the Qualcomm investor conference call (you can hear it yourself on the Qualcomm website). The ban actually applies only to new phone models manufactured after this date, not physical phones. In other words, the Blackjacks, Treos, Samsungs A920s and other current-model phones can continue to be made, imported and sold.
So bottom line: no new models until this is resolved. But current models can continue to made and sold for now.
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Well, as if the rollout of high speed data deployment in the US hasn’t been stunted enough already, the US International Trade Commission has imposed a partial ban on all 3G chipsets manufactured and imported by Qualcomm, starting today.
To most people this may not sound like a big deal, but this means that all 3G cell phones manufactured as of this date (the vast majority of which are made in South Korea or China), may longer be imported into the US. All phones currently in the US can be sold and (we assume?) used legally, but no new phones can come in.
How many phones are we talking about? Well, if you have a phone with the Verizon, Sprint, Alltel or US cellular brand on it, it has a Qualcomm chip. Yes, all phones from these carriers are Qualcomm-powered. Every last one.
Additionally, most Cingular/AT&T phones that are 3G capable also contain Qualcomm chips. Considering Verizon and AT&T have close to 60 million customers each, and Sprint isn’t far behind, the numbers really start to add up. If you own a cell phone, you’d better not break or lose it anytime soon.
Why the ban? Patent abuse, of course. Broadcom, a rival chip manufacturer whose chips can found in things like cablem modems, iPods, HDTVs and laptop and desktop computers, apparently wasn’t happy that they had to share circuit board space with Qualcomm in most cell phones. So, sued Qualcomm for patent infringement and won. While they likely have the technical expertise to make chips that do the same things as Qualcomm-branded ones, they legally cannot because Qualcomm owns most of the other patents on modern cell phone technology as we know it.
And so now, the US is experiencing the technological equivalent of a classic Mexican Standoff. Remember the Blackberry patent dispute? This situation dwarfs the nightmare scenario Blackberry users were pondering. Who knows who this will play out?
Oh, for those who care: the iPhone is a GSM/EDGE handset, and is not 3G enabled. That means it is not affected by the import ban. Sadly, those in the market for a smartphone may have no choice but to be a Steve Jobs beta tester for only $500.
