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Qualcomm’s new partnership with Nokia

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Nokia Lumia (Windows Phone 7) value proposition [Oct 26, 2011]
Note: The “affordable” Nokia Lumia 710 is the one produced by Compal (the 800 is by Nokia itself). Snapdragon S2 MSM8255 @ 1.4GHz is used in both models.

From being an enemy to being a partner [China Daily, Aug 4, 2011]

Paul Jacobs, chairman and chief executive officer of Qualcomm Inc, said the biggest challenge for him since he took over the company in 2005 was to turn Qualcomm from an enemy disliked by many industry players to a popular and amiable partner.

The company, which was founded by his father, Irwin Jacobs, in the United States city of San Diego in 1985, had been known for providing support for a digital wireless technology named Code Division Multiple Access (CDMA).

Unlike his father, who closely focused on CDMA technology, the son has a much broader vision and he strongly believes in the upcoming mobile Internet, in which cell phones are going to be the devices that everybody uses and connects to the Internet.

The idea has driven Jacobs junior to expand his father’s business into two major parts – mobile phone chipset production and patent licensing. The patent licensing includes CDMA technology and European-adopted technology Wideband Code Division Multiple Access (WCDMA).

Jacobs said he has witnessed some critical changes in the past six years. Instead of being caught up in lawsuits concerning intellectual rights, which used to be a common occurrence, companies have begun to regard Qualcomm as a good partner.

“Partnership was the thing we were missing,” he said in an exclusive interview with China Daily. It was great that Qualcomm had been known for two thingsinnovation and execution– because the company would come up with new things and would deliver qualified chips on time.

However, many companies didn’t like Qualcomm because it imposed high intellectual property royalties on its products. “They felt like they were our hostages. They didn’t like us. They resented us,” Jacobs recalled.

So in the first all-hands meeting after the son took the helm in 2005, he got up and said: “We are going to be known for three thingsinnovation, execution, and partnership.”

The company seemed to benefit from the decision and win back partners. Qualcomm and Nokia Corp, the world’s biggest mobile phone maker by volume, had fought for years over intellectual property disputessince Jacobs started to act as CEO.

Now the two companies have settled the lawsuits and are working together in San Diego to develop Nokia’s first smart phone running on a Windows platform.

Nokia Corp’s chief executive officer, Stephen Elop, said Qualcomm would be “an important partner” as his company is about to enter the Windows phone era.

“But Nokia still has a general strategy that we would like to have multiple partners for critical components,” Elop said at the Nokia Connection 2011 event in Singapore in June.

Jacobs said he is “very excited about that opportunity”, as Nokia eventually paved the way to adopt Qualcomm’s chips. “Our relationships are good and I think they will be even better when the first batch of Nokia phones starts to come out.”

Currently, all nine Windows phone models in the world’s markets are powered by Qualcomm’s Snapdragon chips, said the company.

“Qualcomm has the lead position on Windows Phone and it will take its competitors time to get up to speed on that operating system,” Jon Erensen, research director of Gartner’s mobile handset and consumer electronic semiconductors, wrote in an email to China Daily.

Qualcomm also sees good partnerships growing in the Chinese market, as China contributed the biggest revenue share of 29 percent in the company’s 2010 fiscal year, surpassing South Korea.

In China, the most important strategic alliance for Qualcomm is China Telecom Corp Ltd, the smallest telecom carrier of the country. The operator took the 3G license in 2009and runs a CDMA network in China.

China’s CDMA industry chain has flourished since 2009. Wang Xiaochu, general manager of China Telecom Corp Ltd, said the toughest time for China’s CDMA terminal industry chain had passed, since the market volume grew to 41.9 million units in 2010 from 7.67 million mobile phones in 2008.

China Telecom expects to sell more than 60 million CDMA mobile phones in 2011 and, by mid-June, about 25 million units had already been shipped.

“China Telecom is really where the center of the CDMA universe is now. It used to be more North American focused. Now I think it’s much more about China and Asia,” Jacobs said.

Qualcomm could be one of the companies that benefits most from China’s booming CDMA industry, since the company dominates the world’s CDMA chip market.

Meanwhile, the company has also cooperated with China Unicom to help produce WCDMA handsets.

Qualcomm’s relationship with China Mobile Ltd, the world’s biggest telecom carrier with more than 600 million subscribers, was relatively weak in the past. China Mobile adopted GSM technology in the 2G era and home-grown TD-SCDMA technology in the 3G era. Qualcomm had few products supporting these standards.

But Jacobs said his company’s latest chips, such as dual-core MSM 8960, are about to support various international telecommunication standards, including TD-LTE technology, which China Mobile is actively promoting.

Since China is now the world’s biggest mobile phone production country and mobile phone market, Qualcomm would really like to build up its partnerships with Chinese carriers and mobile phone makers here, the CEO added.

Wang Yanhui, secretary-general of the China Mobile Phone Alliance, said Qualcomm had signed patent licensing agreements with more than 50 mainland handset manufacturers and is setting up a research and development team of roughly 1,000 people in Shanghai.

Domestic handset makers, such as Huawei Technologies Co Ltd and ZTE Corp, are all in good relationships with Qualcomm. Jacobs expected these Chinese companies to achieve a similar success with South Korea companies such as LG Corp and Samsung Electronics Co Ltd.

Jacobs said it was very interesting in China that because China issued 3G licenses relatively later than other countries, Chinese mobile phone makers had built up an export market first.

“Then they come back to China’s 3G market with rich experience. That’s going to help them to achieve a greater success.”

In addition to providing high-end chips, which run at a fast speed and have rich functionality, Qualcomm also focuses on low-end mobile chips aimed for the mass market.

“We are driving the price down at that low endto get the mass market smart phone because we really believe that providing mobile broadband very widely to a lot of people is important, not just because of the good business for us, but because it also improves people’s lives,” he added.

Qualcomm’s move to further cut the low-end mobile phone chips could apply more pressure on some Taiwan-based chip makers, such as MediaTek Inc, but the hundreds of small- and medium-sized mobile phone manufacturers in China would benefit from the competition.

Qualcomm’s global annual revenue rose to $11 billion in fiscal year 2010 from $7.53 billion in 2006. The company shipped 207 million MSM chips in fiscal year 2006, and the figure increased to 399 million in fiscal year 2010.

Qualcomm Signs MOU with China’s Ministry of Information Industry for CDMA [Dec 4, 2000]

The MOU confirms MII’s support of Qualcomm’s Framework Agreement with China Unicom dated January 28, 2000, pursuant to cooperation between China and Qualcomm in developing CDMA technologies. This MOU also supports the deployment in China of a nationwide network based on CDMA technology with continued migration to advanced CDMA technology supporting higher data rates. With over 70 million mobile communications subscribers, China has become the second-largest and fastest-growing mobile market in the world. Qualcomm’s MOU with MII has laid down the foundation of long-term cooperation between Qualcomm and China’s information industry.

Qualcomm Announces Signing of Commercial License for CDMA Network Products with Huawei Technologies [Nov 1, 2001]

Under the terms of the royalty-bearing license agreement, Qualcomm has granted Huawei a license under Qualcomm’s CDMA patent portfolio to develop, manufacture and sell cdmaOne™ and third-generation (3G) CDMA2000 1X/1xEV network equipment. The license grants Huawei the right to use Qualcomm’s patented technology and chipsets to make and sell cdmaOne and CDMA2000 1X equipment in China and worldwide.

Qualcomm Enters into CDMA Subscriber Unit and Infrastructure License Agreements with 11 Chinese Manufacturers [Jan 23, 2002]

… making a total of 17 domestic Chinese telecommunications equipment manufacturers that are now licensed by Qualcomm. Under the terms of the worldwide royalty-bearing license agreements, Qualcomm has granted these Chinese manufacturers licenses under Qualcomm’s CDMA patent portfolio to develop, manufacture and sell cdmaOne™ and third-generation (3G) CDMA2000 1X/1xEV-DO subscriber unit and/or infrastructure equipment.

China Unicom Announces the Signing of a Detailed Agreement with China Telecom on the Disposal of its CDMA Business [July 28, 2008]

Previously, on 2 June 2008, Unicom announced that it had entered into a CDMA Business Framework Agreement with China Telecom. On that same day, Unicom announced that it planned to merge with China Netcom Group Corporation (Hong Kong) Limited (“Netcom”) (HKSE: 0906, NYSE: CN).

The total consideration, payable in cash to Unicom by China Telecom, remains unchanged at RMB43.8 billion (approximately HK$50.1 billion [US$6.3B]) and Unicom expects to realise an estimated net gain before tax of approximately RMB37.6 billion (approximately HK$42.9 billion). The net proceeds from the disposal are expected to be used by Unicom for the expansion of its GSM network coverage, the improvement of GSM customer service and the enhancement of IT support systems and platforms for value-added services, in order to lay a solid foundation for the introduction of 3G services. The net proceeds will also fund the Unicom’s working capital and other general corporate purposes.

Upon completion of the Transaction, Unicom will focus on the operation of its GSM network and prepare for the introduction of 3G services. As of 30 June 2008, Unicom had 127.6 million GSM subscribers and 43.17 million CDMA subscribers. As part of the Transaction, 29.3% of Unicom’s employees will be transferred to China Telecom.

After that restructuring – however – Qualcomm had no China Telecom related press releases at all showing clearly that the company’s focus moved elsewhere on the China market (CDMA/EV-DO tech. manufacturing or other technologies), e.g. ZTE to Develop CDMA2000 Femtocells Based on Qualcomm System on Chip Solutions [March 23, 2010] or Qualcomm Now Demonstrating Products Based on LTE TDD Technology [Sept 8, 2010].

The Changes in the Nokia relationship

Qualcomm Initiates Patent Infringement Proceedings in the UK against Nokia [May 24, 2006]
Qualcomm Files Complaint Against Nokia with International Trade Commission [June 12, 2006]
Nokia’s Announced Plan to Ramp Down its CDMA2000 R&D and Manufacturing Will Not Impede the Continued Growth of CDMA2000 [June 23, 2006]
Qualcomm Responds to Nokia’s Latest Maneuver to Delay Judicial Determinations that Nokia’s GSM Handsets Infringe Qualcomm’s Patents [March 20, 2007]
Qualcomm Files Additional GSM Patent Infringement Suits Against Nokia [April 3, 2007]
Qualcomm Files Arbitration Demand Against Nokia to Resolve Dispute Over License Agreement [April 5, 2007]
Nokia and Qualcomm Enter Into a New Agreement [July 23, 2008]
Companies Agree to Settle All Litigation

Nokia (NYSE: NOK) and Qualcomm (Nasdaq: QCOM) today announced that they have entered into a new agreement covering various standards including GSM, EDGE, CDMA, WCDMA, HSDPA, OFDM, WiMAX, LTE and other technologies. The agreement will result in settlement of all litigation between the companies, including the withdrawal by Nokia of its complaint to the European Commission.

Under the terms of the new 15-year agreement, Nokia has been granted a license under all Qualcomm’s patents for use in Nokia mobile devices and Nokia Siemens Networks infrastructure equipment. Further, Nokia has agreed not to use any of its patents directly against Qualcomm, enabling Qualcomm to integrate Nokia’s technology into Qualcomm’s chipsets. The financial structure of the settlement includes an up-front payment and on-going royalties payable to Qualcomm. Nokia has agreed to assign ownership of a number of patents to Qualcomm, including patents declared as essential to WCDMA, GSM and OFDMA. The specific terms are confidential.

“We believe that this agreement is positive for the industry, enabling the market to benefit from innovation and new technologies,” said Olli-Pekka Kallasvuo, CEO of Nokia Corporation. “The positive financial impact of this agreement is within Nokia’s original expectations and fully reflects our leading intellectual property and market positions.”

“I’m very pleased that we have come to this important agreement,” said Dr. Paul E. Jacobs, CEO of Qualcomm. “The terms of the new license agreement, including the financial and other value provided to Qualcomm, reflect our strong intellectual property position across many current and future generation technologies. This agreement paves the way for enhanced opportunities between the companies in a number of areas.”

Nokia and Qualcomm Plan to Develop Advanced Mobile Devices [Feb 19, 2009]

Nokia and Qualcomm Incorporated (Nasdaq: QCOM) today announced that the two companies are planning to work together to develop advanced UMTS mobile devices, initially for North America. The companies intend for the devices to be based on S60 software on Symbian OS, the world’s most used software for smartphones, and utilize Qualcomm’s advanced Mobile Station Modem™ (MSM™) MSM7xxx-series and MSM8xxx-series chipsets for cutting-edge processing performance and ubiquitous mobile broadband capabilities. The first mobile devices based on this collaboration would be expected to launch in mid-2010 and be compatible with the forthcoming Symbian Foundation platform.

“Nokia is very pleased to be in discussions with Qualcomm around designing mobile devices that can benefit from the high level of integration found on MSM chipsets,” said Kai Oistamo, executive vice president, Devices, Nokia. “We are eager to demonstrate to the industry the possibilities that exist when innovative and open software is combined with advanced hardware solutions.”

“Nokia and Qualcomm are leaders in advanced wireless technologies, and this new level of cooperation would bring exceptional leaps in mobile performance to people around the world,” said Steve Mollenkopf, executive vice president of Qualcomm and president of Qualcomm CDMA Technologies. “We are very excited about the possibility of the substantial synergies between S60 software and MSM chipsets.”

Qualcomm Innovation Center Joins the Symbian Foundation [Oct 29, 2009]

Qualcomm Innovation Center, Inc. (QuIC) and the Symbian Foundation today announced that QuIC, a wholly-owned subsidiary of Qualcomm Incorporated, has joined the Symbian Foundation and has been appointed to the Symbian Foundation board of directors. QuIC will support the Symbian Foundation with active participation on the board of directors and each of the four councils that govern the development of the Symbian platform.

QuIC’s charter is to focus on optimizing open source software for use with Qualcomm technology. QuIC brings to the Symbian Foundation a wealth of knowledge and expertise in open source and, as a Symbian Foundation board member, QuIC is committed to working with its fellow board members for Symbian’s continued commercial success. QuIC joins wireless operators AT&T, Vodafone and NTT DOCOMO; silicon providers ST Microelectronics NV and Texas Instruments; and handset manufacturers Samsung, Sony Ericsson and Nokia on the Symbian Foundation board.

The Symbian platform comprises a complete, open source mobile operating system, user interfaces, middleware and key mobile applications used in more than 300 million smartphone devices worldwide. It includes the critical software elements a manufacturer or operator needs to build a mobile device. Symbian was built for mobile and enables mobile developers to use open SDKs to create compelling mobile applications that take full advantage of all Symbian-based handsets.

“QuIC joining the Symbian Foundation and the Symbian Foundation board demonstrates our commitment to provide expertise and to optimize technology with the Symbian platform,” said Rob Chandhok, president of QuIC. “High-level operating systems offer the potential to unleash tremendous innovation and we are excited to help advance that process on the Symbian platform. Working as part of the Symbian Foundation, QuIC looks forward to participating in technology innovation in areas such as multi-core CPU support, Web browser and application enhancement, and CDMA and LTE support.”

“The Symbian Foundation welcomes QuIC, whose membership and board participation brings us significant wireless technology expertise and whose leadership will act as an important catalyst for the growth of the Symbian ecosystem,” said Lee Williams, executive director of the Symbian Foundation. “On behalf of the Symbian Foundation board, we look forward to collaboratively evolving and rapidly expanding the Symbian open source software platform with QuIC.”

Qualcomm, HP, HTC and Nokia Executives to Keynote at Uplinq 2011 [April 28, 2011]

Qualcomm Incorporated (Nasdaq: QCOM), the leading developer and innovator of 3G and next-generation wireless technologies, products and services, today announced the general session keynote speakers for the Uplinq® 2011 conference, hosted by Qualcomm on June 1-2 at the Manchester Grand Hyatt in San Diego. Speakers will include Dr. Paul E. Jacobs, chairman and CEO of Qualcomm, Jon Rubinstein, senior vice president and general manager, Palm Global Business Unit, Hewlett-Packard Company, Peter Chou, CEO of HTC and Stephen Elop, CEO of Nokia.

Dr. Paul E. Jacobs will open the conference on June 1 with his keynote, “Mobile Computing: The Next Great Frontier,” which will focus on the continuing evolution of mobile and expanding opportunities for developers to take the mobile experience to new levels. In addition, Dr. Jacobs will share insights about how advances in mobile computing and other technology enablers are breaking down barriers for developers and empowering them to change the lives of people everywhere. HP’s Jon Rubinstein will follow Dr. Jacobs with a fireside chat on the opening day of Uplinq.

On June 2, the second day of Uplinq, HTC’s Peter Chou will give the opening keynote. Rounding out this lineup of wireless industry leaders will be Nokia’s Stephen Elop who will give the second keynote on Day Two of the conference.

Key message: transition from device-to-device battle to ecosystem-to-ecosystem battle

Uplinq 2011: Nokia Stephen Elop Keynote Highlights [June 17, 2011]

The Uplinq Daily Show on Qualcomm LIVE! Interview with Nokia’s Stephen Elop [June 2, 2011]

Cali Lewis interviews Stephen Elop, CEO of Nokia about his keynote and the importance of mobile ecosystems

Stephen Elop’s keynote at Qualcomm’s Uplinq [June 10, 2011]

… There is an opportunity for a third and competitive ecosystem to emerge. …

It is not just the device, or the software on that device. These ecosystems that I described are so much more than what you are holding in your hand. Nokia will be contributing mapping, navigation and various location-based services… and you know what… all the manufacturers of Windows Phone will be taking advantage of that… I want HTC and Samsung to be successful with Windows Phone because our principal competitor is not each other, but Android. So we are contributing service elements for the benefit of everyone in the ecosystem.

Equally, Microsoft is contributing a number of services and capabilities… for example: Bing, AdCenter, Xbox, Office productivity experience, unified communications (voice, video etc.) You will have heard about the acquisition of Skype ten days ago, clearly that will be part of the Windows Phone ecosystem.

Parts of the ecosystem, as well, are the chipset and other hardware contributors. Which is why Qualcomm, ourselves, Microsoft, are all working together to deliver the best experiences for this ecosystem.

How do we take the ecosystem beyond the mobile experience? We believe that, fundamentally, we are just at the beginning of the mobile revolution. The mobile platform, with a variety of sensors and capabilities associated with a device, is giving opportunities to create entirely new and extended experiences that are only possible on that mobile device. So we are only at the beginning of mobility and have an opportunity to extend the ecosystem in different directions to make that even more compelling.

Of course, this ecosystem is not just about mobility and the smartphone, it is also about tablets, it’s about television sets, gaming platforms, automobiles and all the different places where people expect to have a fully connected digital experience.

And so we at Nokia definitely recognise the importance of delivering on this broader promise of the larger connected digital experience.

Perhaps the first and most notable of these today relates to tablets. So there’s a lot of activity and hype about tablets in the marketplace. But the market conditions are not yet optimised… Say there are 201 tablets being sold today, only one of them is being sold out a furious rate… and being very successful. The other 200 tablets… are not really landing with consumers. For Nokia, when I get asked about our tablets strategy, the first thing I say is that I don’t just want to be tablets number 202. Because, really, if we cant differentiate from that pack… then we’re not going to be successful. So as we look at it, we believe we have to do something that is fundamentally differentiated. And we have some options to do that, given our market penetration, our strengths in emerging markets… so watch this space, you will see some interesting things.

We do have the ability to reach out to very large numbers of well identified consumers. With our existing smartphone operating system we have, today, over 200 million registered users, 60 million of whom are active in our apps and store environment on a [rolling] thirty day basis. … Around the world we have tremendous reach. It is today that we are adding 140,000 new registered users [every day]… and they are downloading 5 million items a day [now 6 million]

Now part of the reason, in many parts of the world, that this has been attractive is because of the focus we have had on monetisation enablers. I mentioned earlier the operator billing relationships – we are able to measure the uplift for developers in areas where there is operating billing, compared to those where there is not. You get a three and half times uplift in the volume of money you can make when we have an operating billing relationship. The reason is simple… it is much easier for consumers to just click the button.

A lot of other things we are doing for developers: removing the registration fees to participate in Windows Phone development, all sorts of thing to make it easier to publish and distribute your application. We are also hoping you will recognise the extended opportunity, even beyond Windows Phone, to monetise your application on other platforms [Symbian, Series 40] that reach into China, India and Russia.

Nokia picks Qualcomm for Windows phone, seeks others [Reuters, May 20, 2011]

Nokia said on Friday it was negotiating with several chipset suppliers for its future Windows Phone models after deciding to use Qualcomm in its first smartphones using Microsoft’s software.

Nokia announced in February it would use Microsoft’s Windows Phone software in all of its smartphones.

Microsoft Windows Phone operating system (OS) is available only on Qualcomm’s chips, but the U.S. software giant has said it was expanding the supplier base.

The first Nokias based on Windows Phone will have the Qualcomm chipset,” said a Nokia spokesman.

“Our aim is to build a vibrant ecosystem around Nokia and the Windows Phone OS and with that intent we are naturally continuing discussions with a number of chipset suppliers for our futureproduct portfolio,” he said.

He said one of the companies involved in the talks was ST-Ericsson.

Nokia To Use ST-Ericsson Chips For Windows Phone 8 Handsets [May 19, 2011]

In an interview at STMicroelectronics’ annual Analyst Day, [Carlo] Bozotti [the Chief Executive of the European semiconductor maker] told Forbes that ST-Ericsson will be one of two chip suppliers for Nokia’s upcoming Windows Phones.

The first ST-Ericsson chipset that will appear in a Nokia Windows Phone is the U8500, a sophisticated dual-core system-on-a-chip that has been favorably compared to Qualcomm’s Snapdragon line because it offers multiple wireless technologies like Wi-Fi, Bluetooth, GPS and a fast, built-in HSPA+ modem, all in a compact format. Some later Nokia Windows Phones – the company has previously said it is planning to release 12 Windows Phone devices over the course of 2012 – will run on future versions of the U8500, said Bozotti.

The 5-years long experience of close partnership with Microsoft

Microsoft and Qualcomm to Revolutionize the Next Generation of Smartphones [May 4, 2006]
Qualcomm’s Collaboration with Microsoft Reshapes the Smartphone Market [Oct 23, 2007]
Qualcomm [Snapdragon] Powers Next-Generation Windows Phones [Windows Mobile 6.5] Launching Around the Globe [Oct, 2009]
Qualcomm Becomes the First Chipset Company to Support Microsoft Windows® Phone 7 Series [Feb 15, 2010]

The Company is working with Microsoft and multiple device manufacturers on smartphones powered by its Snapdragon™ platforms and running Windows Phone 7 Series software, currently scheduled to begin launching in time for the 2010 holiday season. Snapdragon chipsets integrate high-performance, custom CPUs with 3G and powerful multimedia capabilities in a single chip.

The latest version of Windows Phone software, announced today, is distinguished by its smart design and delivery of truly integrated experiences. Combining the capabilities of Windows Phone 7 Series software and Qualcomm’s industry-leading chipset solutions will enable a new generation of devices that redefine the possibilities of mobile experiences.

“People’s lives are not a set of discrete tasks and their phones should not be either. Windows Phone 7 Series software offers a fresh approach that integrates the Web, applications and content and brings new services such as Zune and Xbox LIVE to the phone for the first time,” said Andy Lees, senior vice president, Microsoft. “We’ve worked closely with Qualcomm on Windows Phone 7 Series software and Qualcomm’s Snapdragon chipsets are an integral partof bringing to life the rich, integrated experiences on a Windows Phone in a way that conserves battery life and provides always-on connectivity.”

Qualcomm has a long history of working closely with Microsoft on Windows Phone, and we are continuing this collaboration to support the launches this year of exciting new Windows Phone 7 Series devices based on our Snapdragon chipsets,” said Steve Mollenkopf, executive vice president of Qualcomm and president of Qualcomm CDMA Technologies. “We are very excited about the next generation of devices that will leverage the synergy of our highly integrated system on a chip solutions and Microsoft’s Windows Phone 7 Series software.”



  1. […] melletti– HARMADIK ÖKOSZISZTÉMA LÉTREHOZÁSA A TÉT! Ld. Qualcomm’s new partnership with Nokia [Aug 8, 2011]. Qualcomm vonatkozásban pedig nem az eddigi, mindössze 22 millió […]

  2. […] Read the original: Qualcomm's new partnership with Nokia | Experiencing the Cloud […]

  3. […] Read the rest here: Qualcomm's new partnership with Nokia | Experiencing the Cloud […]

  4. […] link: Qualcomm's new partnership with Nokia | Experiencing the Cloud This entry was written by apanhamentirosos, posted on 08/08/2011 at 18:45, filed under GSM, […]

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