Chapter 723: Conditional Joining the GSM Camp

The telecommunications industry has always been a high-tech and high-patent barrier industry, many people in China in later generations find it difficult to believe that China in the 90s is still a desert of telecommunications equipment, and even low-tech program-controlled switches and routers need to be imported, not to mention more complex wireless communication base stations. But in fact, it took less than 20 years for China to change from an insignificant and weak country in the telecommunications industry to a market share of China's telecommunications equipment, which is higher than that of other countries combined, and the number of patents is not inferior to Europe and the United States.

Relying on the accumulation of quantity, to the breakthrough of quality. In the 2G era, the American and European standards game, the American standard, the European standard, any standard can be recognized by the Chinese market, then it is likely to become the most mainstream standard in the world.

Historically, China has actually suffered a loss in the 2G era, although it has been authorized by the GSM mobile phone and base station production technology promised by Europe, but the manufacturers dominated by European technical standards have not committed to the proportion of patent fees. As a result, although China was barely able to produce GSM mobile phones and base stations by itself, it was ...... The patent fee of 16%~17% has led to the fact that Chinese mobile phone manufacturers cannot achieve profitability at all in the GSM era, and there is no way to compete with Nokia, Motorola and other manufacturers.

In particular, the European manufacturer Nokia, in the GSM era, once relied on the barriers of patent standards, not only saving expensive patents, but also charging patent fees from manufacturers all over the world to feed Nokia's mobile phone business. As a result, Nokia has become a real monopolist in the world's mobile phone industry in the 2G era, once selling 1 billion mobile phones a year in the world, at least 500 million of which are Nokia's.

In terms of the degree of monopoly, no mobile phone manufacturer in the future can compare with Nokia.

In terms of the degree of patent trolls, the greed of mobile phone standard setters in the 2G era has also exceeded the imagination of later manufacturers. Just imagine, a mobile phone that costs 6,000 yuan, in fact, nearly 2,000 yuan is a patent fee. And the hardware cost of mobile phones is even far lower than the patent fee, how can mobile phone manufacturers survive?

The period when copycat phones were most rampant was the 2G era. In the 2G era, more than 1,000 yuan can really reach the hardware level of more than 5,000 yuan mobile phone, in essence, because the patent fee in this era is more expensive than all the hardware costs of the mobile phone combined.

Lin Qi communicated with Nokia, Ericsson, Philips and other giants in Europe, that is, coercion and inducement, saying that if the European GSM standard cannot formulate preferential patent fee standards for Chinese manufacturers, then China may find another way out and join the CDMA standard of the United States.

At the same time, China's official technical officials, at important conferences in the international telecommunications industry, are also similar to Lin Qi's tone, constantly re-examining, the United States CDMA standards are more advanced, and intend to join the CDMA standards. Of course, when Qualcomm, Motorola and other companies in the United States excitedly asked whether China was going to introduce the CDMA standard, the Chinese representative said that he was still considering it and did not know whether to choose GSM or CDMA......

In short, make full use of China's market advantages and sell at a price. Anyway, it is not China that is in a hurry, but American and European manufacturers.

The reason why Chinese manufacturers want to join GSM or CDMA is mainly for export and avoid patent disputes. It is currently difficult to sell a set of products by yourself, and it is naturally not possible to produce GSM or CDMA equipment and terminals without authorization, and there will be a bunch of patent lawsuits.

Therefore, first of all, if you stand in line, you can mainly take a camp, which can not only produce some base stations and mobile phones for your own use, but also sell products to overseas markets of the same standard.

……

At the end of September, Nokia, Ericsson led by the European GSM basic patent bosses, united to promote, in consideration of China is a developing country, per capita income is not high, etc., well, in fact, not to mention the coercion and temptation of Mr. Lin, agreed that in the next 15 years, the GSM package of patent fees, for Chinese manufacturers, the comprehensive patent fee does not exceed 3%. At the same time, if Chinese manufacturers make new patent contributions to the GSM standard, they can swap patents with companies related to GSM patents to offset part of the patent fees.

After negotiating the GSM patent, the Chinese official officially announced that China's 2G communication is based on the European GSM standard, and talked about the advantages of GSM technology.

With China's declaration of the adoption of GSM technology, American manufacturers are greatly disappointed, at the same time, many countries have come to the competition between European standards and American standards, and the European GSM standard seems to have occupied an absolute advantage.

……

With China's accession to the GSM standard, there is no doubt that Europe is one step ahead of the competition between the two European and American countries in terms of patent standards.

Subsequently, in order to establish a good relationship with European manufacturers, Lin Qi also authorized Nokia, Ericsson and other GSM communication-related companies to produce Pangu computers.

After all, for these telecom technology giants, telecommunications is to make money, and computers are also to make money. At present, Pangu computers have become the mainstream computer technology in the world, and one-third of users in Europe use Pangu computers.

Philips in the Netherlands and Siemens in Germany have both started to produce Pangu computers.

Subsequently, Lin Qi authorized Nokia to produce XRM-based chips in Europe.

Of course, Lin Qi actually suggested that Nokia use ARM chips on mobile phones, but ...... Nokia can't see the benefits of ARM, only the poor performance of ARM chips......

Moreover, the current market share of XRM architecture chips is far broader than that of ARM. It can be used on a computer, or it can be produced in a low-voltage version and applied on a mobile phone.

All right...... Lin Qi saw that Nokia was so insistent, so he didn't say anything. It is very preferential to give Nokia the production authorization of XRM chips, and the patent fee is only 2 US dollars ~ 5 US dollars. A $2 chip is a single-core CPU chip, and for each additional core, the patent increases by $1, up to a maximum of $5.

As for the production authorization of the compatible machine of Pangu computer, the patent commission of the whole machine is 2.5%, including the patent production license of the hardware and the authorization of the operating system.

It seems that the Pangu operating system is free to download and install for individual users. But...... Commercial use is charged, for example, the manufacturer of compatible machines charges a 1% royalty for each Pangu computer that leaves the factory.

It is precisely for this reason that the Pangu operating system has always been free for users, in fact, at this stage, it has begun to realize the use of the operating system to raise the operating system, just the patent fee authorization, and now it can collect more than 100 million US dollars a year. Not to mention, in the future, there will be more and more compatible machine manufacturers, and after Pangu computers are ceded to compatible machine manufacturers, even if you produce, you will have to pay me patent fees anyway.

This kind of lying down to make money and collecting royalties is what companies in the upper reaches of the food chain should do.

Of course, patent fees can be collected, but they must not be too expensive, otherwise, just like in history, the collapse of Europe's telecommunications and mobile phone industries, in essence, is because the global industrial chain is unveiled, and it no longer accepts the harsh exploitation of GSM. However...... Soon it was exploited by Qualcomm, ARM and other manufacturers. But having learned the lessons of the collapse of Nokia, Ericsson and other manufacturers, Qualcomm and ARM are relatively mild compared to those patent manufacturers in the GSM era, despite this...... The longer the monopoly, the higher the royalty will gradually increase.