Tech Giants Expect 5G Bonanza

Tech Giants Expect 5G Bonanza
5G license fees will cost smartphone makers more than $21 per device.

(CCM) — Nokia, Ericcson, Qualcomm, and other wireless technology giants are preparing to make billions in 5G license fees from smartphone makers such as Apple, LG, and Google.

Wireless communications companies such as Verizon and AT&T are planning to launch 5G networks offering mobile data speeds of up to 20 Gbps this year, and it is now becoming clear how much device-makers will have to pay for a license to use the technology in their 5G phones.

Nokia has decided to charge a flat rate fee of 3 Euros ($3.48) per device, while Ericsson will charge anywhere between $2.50 and $5 depending on the retail price of the phone, according to an Engadget report. Qualcomm is taking a different approach, charging between 2.275% and 3.25% of the 5G phone's wholesales price, with a top rate of $13 per handset.

Together, these license fees will add more than $21 to the price of each smartphone, and the final total will be even higher once Huawei announces the fees it intends to charge for its contribution to the development of 5G technology.

The average license fees levied on phone-makers for using 4G technology is currently just $9.60.

Australia has reportedly banned Chinese technology companies Huawei and ZTE from supplying 5G technology for the countries wireless networks due to concerns about national security.

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