Bluetooth creator narrows its Bluetooth focus.

ERICSSON, CREATOR of Bluetooth short-range wireless technology, is discontinuing development of new Bluetooth systems for the semiconductor industry. As a result, it's shutting down its Ericsson Technology Licensing (ETL) division, which did most of the company's Bluetooth development.

Ericsson will, however, continue Bluetooth software technology development for mobile phones. Johan Akesson, ETL vice president of marketing is quick to insist Ericsson is not abandoning Bluetooth. "We succeeded in getting Bluetooth into mobile phones, which was one of Ericsson's major goals, bringing as it does huge volume sales. The very success of Bluetooth, and its widespread market adoption have driven prices down, bringing intense competition amongst software and hardware providers, and tough market conditions. From a strictly objective point of view, the business case to continue as we are today is not solid enough."

Ericsson will offer Bluetooth technology via its Ericsson Mobile Platforms (EMP) division, which provides platform technology to mobile phone manufacturers including Sony Ericsson, Sharp, LG, Amoi, TCL, HTC, Lite-On, and Bellwave among others.