Huawei will start charging smartphone makers a royalty to use its patented 5G technology, as it is looking to find new ways of generating revenue.
The Chinese company has 3,007 declared 5G patent families, which is more than any other company in the world.
Huawei says it plans to charge “a reasonable percentage royalty rate of the handset selling price, and a per unit royalty cap” at $2.50 for smartphones capable of 5G connections and previous generations of mobile networks, as reported by CNBC.
By charging royalties on key patents, Huawei may be able to make up some of its lost revenue due to U.S. sanctions. The United States and several other countries have also banned Huawei from participating in the rollout of 5G, which has been a huge hit for the Chinese company.
Canada is the only member of the Five Eyes Alliance to not ban or restrict the use of Huawei 5G equipment. Other countries in the alliance are the United States, the United Kingdom, Australia and New Zealand.
When asked about the federal government’s ongoing Huawei 5G security review during a press conference, Innovation Minister François-Philippe Champagne stated that officials will take the appropriate time to come to a conclusion.
“It’s probably one of the most consequential decisions. We will not be led into an artificial deadline that some would have suggested. We will consult with allies and make sure we make the best decision in the interest of Canadians,” he stated.