5G technology has been a matter of a few. Large telecommunications companies have developed this new standard over the past few years and now it is finally being rolled out globally. The next step? Recover the money invested, and for this Huawei says that it will start charging for its patents .
Huawei, which is truly the world’s largest telecom equipment provider, is now taking steps to earn revenue from its intellectual property as well . They say they will go beyond telecommunications infrastructure and smartphones, with a special eye on IoT technologies to grow in other sectors.
The Asian giant has unveiled for the first time this past Tuesday the royalties for licensing its 5G technology . Jason Ding, Huawei’s head of intellectual property, has been in charge of presenting the plans. As it indicates, they believe that “the concession of licenses must balance the return of the investment and the pressures of costs of the implementation in the industry”.
For this reason, the company will start charging up to a maximum of $ 2.5 for each phone that meets 5G standards and uses Huawei patents for it. They estimate that in the period 2019-2021 the income could be “between 1,200 and 1,300 million dollars” for these patents.
In return, they indicate that they have been committed to respecting the intellectual property of other companies for decades. They highlight how they were one of the first companies in China to sign license agreements with companies such as Qualcomm or Ericsson two decades ago. They expect the same now and say they have already signed more than a hundred agreements with companies around the world.
This announcement comes in one of the most critical points of Huawei , being on the black list of the United States and consequently without the possibility of collaborating with half the technology industry. The drop in income that has suffered in the last two years due to the commercial blockade, they hope to be able to cushion it with these licenses.
More curious is the news when we consider that in September 2019 the founder of Huawei offered 5G technology to American companies to create a competitor to Huawei. However, no company agreed to pay licenses for the right to use Huawei’s 5G technology in the United States.
Another solution that Huawei is looking for is being more independent from external companies . Manufacture of own chips, an own operating system or a strong market in China are some examples.