Jakarta, CNBC Indonesia – Smartphone vendors such as Xiaomi, Oppo and Vivo will be required to pay royalties if they use Huawei’s 5G technology. This method is to open new revenue streams for companies from China after being sanctioned by the US government.
Huawei said it would ask for royalty rates on the selling price of handsets with an upper limit of US $ 2.5 or Rp 36 thousand on smartphones with 5G technology and previous networks, quoted by CNBC International, Tuesday (16/3/2021).
This price is much lower than Huawei’s competitors such as the Finnish telecommunications company, Nokia. The imposition of royalties has actually been carried out by Huawei before, to companies such as Apple.
So far Huawei has 3,007 patents for 5G. That figure is the highest of all companies in the world. Meanwhile, the other top patent holders are Samsung, LG Elestronics, Nokia, Ericsson and Qualcomm.
For information, when a new generation of technology is being developed, global standards are needed. These are the protocols, technical specifications and designs that enable interoperability between global 5G networks and allow smartphones to communicate with those networks.
A number of large companies contributed to making these patents, for example Huawei, Nokia, Ericsson and Qualcomm. The company will design the technology and then patent it.
For example a critical standard for 4G or 5G, would be considered the patent essential standard or SEP. For example, when a smartphone maker wants to release a 5G handset then it will use that standard.
Then the company will ask for royalties from companies that use the technology.
Nokia’s payment practice in 2018 was worth 3 euros (Rp.51 thousand) per device. Ericsson has also done the same and is priced at US $ 2.5 to US $ 5 (Rp. 36 thousand to Rp. 72 thousand).
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