Huawei announces royalty rates for 5G phone technology, Telecom News, ET Telecom
SHENZHEN: Huawei Technologies first announced the royalty rates for the use of its 5G phone technology, in a move its general counsel said was an effort to increase transparency at an event on Tuesday.
The company was blacklisted for export by former US President Donald Trump in 2019 and was denied access to critical US-sourced technologies, which affected its ability to design its own chips and to source from outside suppliers.
But Huawei is looking to showcase its own research achievements, with the company expecting to receive around $ 1.3 billion in revenue from patent licensing between 2019 and 2021, according to its head of intellectual property. , Jason Ding.
For each phone using Huawei’s 5G technology that is capable of functioning, the company will receive up to $ 2.5 in royalties, Ding said.
Along with rivals Samsung Electronics, Nokia, Ericsson and chipmaker Qualcomm, Huawei is one of the leaders in 5G patenting, although studies on the leading company vary.
Huawei achieved positive growth in both revenue and net income for 2020, company founder and CEO Ren Zhengfei said in February, adding that the company continues to enjoy a high level of trust. from its customers.
Still, the company’s smartphone business remains under intense pressure due to the US ban. Huawei’s consumer business accounted for 54.4% of the company’s revenue in 2019.
The company is expected to reveal the full 2020 numbers at the end of the month.
At the end of 2020, Huawei had more than 100,000 active patents in more than 40,000 patent families around the world, the company said. Its R&D investments totaled 131.7 billion yuan ($ 20.27 billion) in 2019.