Ericsson Calls Off Bluetooth Development

Ericsson recently said it will discontinue design and development of new Bluetooth products for the semiconductor industry. The company will, however, continue to offer Bluetooth--a standard for short-range radio technology enabling point-to-point communication between devices--through its Ericsson Mobile Platforms subsidiary, according to a statement on Ericsson's Web site.

"The standard has now reached a mature state and Bluetooth products are being produced in large volumes. However, even though large volumes are manufactured, the business case for Ericsson's design of new Bluetooth solutions is not strong enough," the statement said.

The Stockholm, Sweden-based company is reorganizing its Bluetooth operations, a move that calls for the dismantling of its Ericsson Technology Licensing outfit. The company instead is forming a dedicated Bluetooth unit to support its current semiconductor manufacturer customers.

The company also said it will continue to support the technology as a member of the Bluetooth Special Interest Group.

Industry observers say Ericsson's jump out of the development effort does not signify Bluetooth's death. It does indicate, however, that Bluetooth is taking a backseat to network technology such as Wi-Fi. Calling Bluetooth "overhyped," Mark Schratz, senior vice president of business development at Tolt Technologies, based in Gig Harbor, Wash., said the technology is not widely used among the solution provider's customer base.

"The only time it's really ever used is literally to eliminate a cable, like when you have a portable printer on your belt that you're using with a mobile device," Schratz said, noting that the technology has found its strongest appeal among Tolt's vertical market customers.

Schratz said Bluetooth's future value comes into question with the convergence of mobile devices and mobile networks.

"I don't know what role Bluetooth will play," he said.