Addis Ababa, March 16, 2021 (Walta) – Huawei will begin charging smartphone makers a royalty to use its patented 5G technology as the Chinese technology firm looks to open a new revenue stream, even as other parts of its business have taken a hit due to U.S. sanctions.
The company said that it will charge “a reasonable percentage royalty rate of the handset selling price, and a per-unit royalty cap” at $2.50 for smartphones capable of connections to 5G and previous generations of mobile networks.
This price is lower than some of Huawei’s competitors including Finnish telecoms company Nokia.
Charging royalties on key patents related to cellular technology could help Huawei make up at least part of the revenue hit in other parts of its business, such as smartphones, as a result of U.S. sanctions.
According to CNBC, in the past, Huawei has charged royalties to companies such as Apple.