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The GSMA - which represents some 800 GSM network operators and device makers - described MPEG LA's revised licensing fees for its Open Mobile Alliance's Digital Rights Management technology for MPEG-4 content as a 'serious disappointment'.

'MPEG LA is missing a tremendous opportunity to unite the industry behind one solution,'said Rob Conway, CEO of the GSMA. 'It's clear that the revised proposal remains unreasonable and unworkable - but we are confident that MPEG LA will continue to respond to market feedback.'

The association rejected the original terms in early April, prompting their revision by the MPEG LA, an umbrella body for MPEG-4 technology patent holders.

It reduced handset and transaction licensing fees but the GSMA insists that the costs remain to high and the licensing structure too complex. It adds that it is 'frustrated' by the lack

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of transparency surrounding the details and structure of patents that MPEG LA considers 'essential', noting that the by not revealing them, MPEG LA has caused some GSMA members to question their validity.

The GSMA argues that unless it can come to an agreement, its members will opt for a mish-mash of differing formats and DRM systems. While it has identified alternatives to MPEG LA's OMA DRM, these too, it said, have their faults.

Network operators backed the GSMA's stance.

'We must find cost-effective ways to open the content market and drive the flow of rich multimedia content across the mobile world,' said Frank Boulben executive vice-president, Brand & Consumer Marketing, Orange. 'It's disappointing that the MPEG LA has not taken on board our previous concerns. The current terms of its proposals will lead to fragmentation owing to unacceptability, and critically delay launches of these new mobile services.'

'It is essential that the industry adopts a unified approach to digital rights management,' Alan Harper, strategy director, Vodafone Group, added. 'Unless we do so fragmentation remains a real concern. We are extremely disappointed that MPEG LA has not responded appropriately to the scale of opportunity that the industry has before it to nurture and grow the mobile content market to achieve its full potential. It is therefore essential that the GSMA's DRM review process continues until a practical solution is found.'

The MPEG LA is considering its response.