Sony is set to take on total ownership of handset joint venture Sony Ericsson, paying partner Ericsson EUR1.05 billion for its 50 percent in the company.

In a statement, it was said that the deal will give Sony “an opportunity to rapidly integrate smartphones into its broad array of network-connected consumer electronics devices – including tablets, televisions and personal computers.”

At a press conference this morning, Howard Stringer, chairman, president and CEO of Sony, said that it was too early to be drawn on plans for the unit, but that a “task force” is being set up to handle the integration. Stringer did suggest that the company will transition away from the Sony Ericsson brand, but again that this is something that will need further study.

According to the companies, prior to the current transaction, Sony Ericsson had made a net positive contribution to its shareholders of EUR1 billion.

Ericsson noted that there have been “declining synergies in combining network and handset operations,” as the focus has instead shifted to the integration of smartphones with internet services and content – which has led to the emergence of new competitors from the consumer electronics industry.

As part of the deal, Sony will also gain a “broad intellectual property (IP) cross licensing agreement” for all of its products and services, as well as taking on ownership of “five essential patent families relating to wireless handset technology.”

Hans Vestberg, president and CEO of Ericsson, noted that the cross-license is the most important element of the IP transaction, and that it is being made on fair, reasonable and non-discriminatory (FRAND) terms – indicating that Sony is not getting a bargain.

Stringer also noted that Sony and Ericsson will continue to have an operating relationship moving forward: “we look forward to continuing our partnership with Ericsson because they are the wireless connectivity genius company…we are not separating, we will be meeting regularly.”

Sony Ericsson started operations on 1 October 2001, combining the unprofitable handset operations of both Sony and Ericsson. Stringer noted that: “we have gone from mutual weakness in cell phones to mutual strength in smartphones.” It has subsequently produced products “integrating Sony’s strong consumer products knowledge and Ericsson’s telecommunications technology leadership,” including handsets using the Walkman and Cyber-shot brand.

In its most recent results release, Sony Ericsson said that 80 percent of its shipments are currently smartphones, and that it will shift to a full smartphone focus in 2012.

The deal is expected to close in January 2012, subject to customary closing conditions, including regulatory approvals.