Huawei announced that it would license its 5G technology to compete against Oppo, according to CNBC. The move is to allow for a new revenue stream following the US sanctions that impacted Huawei's business.
Visitors stand by a Huawei stand during Fintech Week 2022 in Hong Kong on November 1, 2022. - Hong Kong hosts a week of financial conferences aimed at resuscitating the Chinese hub's image.
Huawei is among the top patent holders in 5G technology that is pivotal to the future of various technologies, such as Artificial Intelligence (AI) and autonomous vehicles.
When a new gen of cellular technology is developed, global standards are created for the interoperability between 5G networks globally for smartphones to communicate with these networks. It is the industry bodies that must create them, and companies such as Huawei will contribute to that creation.
However, Huawei has not been that aggressive in monetizing its patents, unlike its competitors. But things are starting to change now.
The Importance of 5G Today
It is a new generation of wireless technology that will allow for a faster and more reliable connection to mobile devices. This is key for mobile users, who rely increasingly on their smartphones for everything from work to entertainment. Smartphones need a strong, reliable connection for all kinds of activities, including streaming video content or for video calling.
It will also be useful for things like industrial applications. 5G will allow for a new level of connectivity for everything from autonomous vehicles to complex machinery, making our lives easier.
Also read: Huawei Mate 50 Can Make Calls Even Without Battery Power, Thanks to New Emergency Battery Mode
Huawei: A Major Player in Smartphone Technology
Huawei is the third largest smartphone maker in the world, according to Forbes. The company shipped over 200 million smartphones in 2018. It has been aggressively expanding its presence outside China, where it is the market leader, to markets like Europe and the US.
In the US, however, it has faced major hurdles. The US government is concerned about the potential for espionage use of its products. US officials have repeatedly warned against using Huawei products, citing concerns about the potential for spying by the Chinese government.
This effectively disrupted Huawei's business plan, which relied on its ability to use US technology to construct its products, particularly its smartphones.
Now, Huawei is turning to another avenue to make money by licensing its patents to competitors.
Patents for the New 5G Era
5G technology will be important for a variety of applications. It is crucial, for example, for the development of augmented reality (AR) and virtual reality (VR), which are poised to become a major part of consumers' media experience.
It is also useful for autonomous vehicles and IoT. All of these applications require 5G technology to process information and make informed decisions.
Huawei has 5G technology patents that are essential to the success of these new technologies. They are uniquely positioned to make money out of them, and the new licensing agreements are the first step in that direction.
One of the benefits of licensing technology patents is that they are not subject to the same export restrictions as products. They can be legally produced and sold in other countries. This will certainly be a big benefit to Huawei in the wake of the US sanctions.
Related article: Huawei Will License Its 5G Technology Following US Sanctions
