Qualcomm is reported to be charging excessive royalties to damage China's mobile phone industry

75.62,0.93,1.25%, the world's largest handset-chip supplier, has been briefed by the NDRC's antitrust investigation: The China Communications Industry Association's mobile Phone China Alliance has filed a report to the NDRC that reports that the business model of excessive royalties and tying is damaging China's mobile industry. When Qualcomm saw 4G as a Chinese dish, the antitrust stick was raised high above its head. Anti-monopoly is to maintain fair competition in the market environment, but also to China's mobile phone chip manufacturers to create catch-up opportunities. Qualcomm's excessive royalties damage China's mobile phone industry November 26, 2013, the US chip giant Qualcomm issued a statement saying that the China Development Reform Commission has launched an antitrust investigation into the company. Recently, China Communications Industry Association's mobile Phone China Alliance to the NDRC submitted the "Domestic mobile phone brand intellectual property Ecological investigation report." The report argues that Qualcomm has imposed excessive royalties and tying in China, and that its business model has harmed China's mobile phone industry. A major domestic operator in charge of technical field told reporters that Qualcomm's chip to save electricity, good reception, and can support multimode networks, such as GSM, WCDMA, TD-SCDMA, Tdd-lte, Fdd-lte and so can support. "There are only a handful of manufacturers in the world that can support such a multi-mode network, which is best done with Qualcomm chip performance." At present high-end brand handset such as Samsung, Apple (535.96,6.97,1.32%) and so on basic all uses Qualcomm's chip. He said that in addition to China Mobile's procurement of 4G handsets, the use of Qualcomm chip equipment ratio of up to 60%. In cooperation with Qualcomm, mobile phone manufacturers in addition to pay chip fees, but also to pay high royalties. With the 4G coming to a close and booming, Qualcomm will also receive huge profits from the sale of chips in the domestic market and the collection of royalties. NDRC launches antitrust investigation raises stick escort 4G as the only company in the world to provide a complete 2g/3g/4g mobile phone chip solution, Qualcomm has a number of core patents, and its main profit comes from patent licensing. Qualcomm earnings figures show that in fiscal year 2013, Qualcomm's revenues amounted to $24.87 billion, of which 7.88 billion were from technology licensing. Industry insiders told reporters, Qualcomm charge chip royalties for each mobile phone price range of 2%-6%, for each manufacturer's fee standards are not the same, mainly by order volume and other requirements of the impact. The advent of the 4G era has not changed the fate of mobile phone manufacturers to pay royalties. The above operators in charge of technical field told reporters that LTE (4G technology) Although it is the standard proposed by our country, but the core technology of chip is still controlled by foreign companies, mastered a considerable number of LTE foundation patent Qualcomm, will borrow 4G again high royalties. Paul Yas, Chairman and CEO of the company, said that, benefiting from the continued strong growth of 3G and 3g/4g multimode equipment around the world, Qualcomm achieved double-digit growth rates for both revenue and earnings per share over the next five years. From this perspective,4G has long been considered a dish by Qualcomm. However, when the 4G licence was about to be released, the NDRC launched an antitrust investigation against Qualcomm. Li Yuheng, a senior researcher at CIC, argues that the NDRC's antitrust investigation means that in the 4G era China's mobile phone industry does not want to pay high royalties to Qualcomm. The technology innovation of domestic manufacturer chip is the key to turning over. Although Qualcomm used its technical advantages to earn a large amount of licensing fees, but it must be admitted that China's chip in the energy consumption, signal reception stability is indeed far from the difference. Industry insiders told reporters that in China's chip industry, Qualcomm's main competitor is MediaTek and the show, but both of the multimode LTE chip has not achieved mass production. In addition to Huawei Heiss and Marvell, Qualcomm is the main provider of multi-mode LTE chips. The reporter from Huawei Heiss learned that the current Heiss chip is mainly facing Huawei's own terminal, has not publicly released LTE chip. Li Yuheng said that once the antitrust results are settled, then Qualcomm in the 4G technology patent will be forced to give concessions, our mobile phone manufacturers will be able to save a large amount of money, lower costs will give the entire handset industry manufacturers to bring more market opportunities, thus benefiting the development of China's mobile phone industry. However, in the antitrust investigation of Qualcomm at the same time, to add to the competitiveness of China's mobile phone industry, the most critical or independent chip manufacturers of technological innovation. Yanhui, secretary General of the Chinese Alliance for mobile phones, said that in view of the fastest 4G mobile phones in the second half of 2014, Huawei's exhibition and MediaTek will realize the production of multi-mode LTE chips, which will add competition to the development of the industry. If China's antitrust investigation of Qualcomm can effectively depress the cost of patent, then the domestic chip on the basis of strengthening technological innovation, there is still time in the 4G era to temporarily overtake the corners. According to Xinhua