Huawei announces royalty rates for 5G phone technology

Huawei announces royalty rates for 5G phone technology

News: Huawei announces royalty rates for 5G phone technology.

SHENZHEN, China (Reuters) – Huawei Technologies announced license fees for the first time to use its 5G phone technology. The chief legal officer said this was an attempt to increase transparency at an event on Tuesday.

The company was placed on an export blacklist by former US President Donald Trump in 2019 and was not allowed to access critical technologies of US origin, which affected its ability to develop its own chips and source components from external suppliers.

However, Huawei would like to present its own research results. According to Jason Ding, head of IP, the company expects revenue of around $ 1.3 billion from patent licenses between 2019 and 2021.

For every phone that uses Huawei’s 5G technology and is functional, the company receives royalties of up to $ 2.5, Ding said.

Huawei is one of the leading providers of 5G patents alongside rivals Samsung Electronics, Nokia, Ericsson and chipmaker Qualcomm, although studies have varied as to which company is ahead in the race.

Huawei posted positive growth for both sales and net income in 2020, the company’s founder and CEO Ren Zhengfei said in February, adding that the company continues to see high levels of trust from its customers.

However, the company’s smartphone business remains under heavy 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 release full 2020 numbers by the end of the month.

By the end of 2020, Huawei held more than 100,000 active patents in over 40,000 patent families worldwide. R&D investment in 2019 was 131.7 billion yuan ($ 20.27 billion).

($ 1 = 6.4960 Chinese Yuan)

Reporting by David Kirton; Edited by Uttaresh.V

Original Source © Reuters

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