Those Years When I Was Forced to Top the Forbes List

Chapter 264 Declaration of war!

The matter between Chen Xuebing and Ren Zhengfei did not alarm the people inside.

They talked in the conference room until almost dawn.

When Wu Ping came out, he looked excited and kept saying that he had "gained a lot".

On the way back, Chen Xuebing rode in the same car with Wu Ping, Chen Datong, Zhou Guangping, and Zhang Hao. Even the technicians from Spreadtrum were asked to take a taxi.

These two GL8s were bought by Singulato, and the driver is also from Singulato. Chen Xuebing glanced at the driver, a middle-aged man in his forties or fifties. People from that era probably didn't know much about technology. Then he said:

"I plan to collaborate with Huawei on the development of LTE. Their technology is estimated to be worth over a billion yuan. Once we determine the valuation of the technology, we will invest equally."

These words jolted the four of them awake from their drowsiness.

"Huh? They have LTE technology worth billions??" Zhou Guangping looked bewildered.

Motorola's comfortable work environment over the years had diminished his fighting spirit, and he was completely unaware that Huawei was hiding so deeply.

The two companies he just mentioned are definitely not worth that much; they wouldn't even reach the "hundred million" unit.

Zhang Hao thought it was only natural. Many foreign companies have technology confidentiality systems. Before a technology is mature, the outside world can only find some clues from the technical papers published by core personnel. If they deliberately do not publish, you have no way of knowing.

Wu Ping was stunned, and Chen Datong was also somewhat suspicious and guessed what Chen Xuebing meant.

Chen Xuebing wasn't discussing whether to do it or not, but rather how to do it. So he asked directly, "President Wu, Professor Chen, Spreadtrum wants to be the main body for our technology research and development. There are two cooperation methods. One is that I, as a shareholder, will invest and Spreadtrum will license the technology for a fee. The annual licensing fee will be very high, and subsequent technology outputs will also require payment to the joint venture. The other is that I will invest in Spreadtrum, and Spreadtrum will invest and become the main body that directly owns the technology. Which one do you plan to choose?"

Upon hearing this, Wu Ping's expression calmed down as he pondered his next move.

Zhang Hao spoke first.

"I think your discussion should be based on the maturity of each other's technologies. MIMO (Multiple Input Multiple Output) technology is no small matter. In theory, it can improve spectrum efficiency by more than 4 times through spatial multiplexing. In the future, it may be further developed through continuous research and development. I think whether it is LTE proposed by 3GPP or the WIMAX upgrade 4G solution currently advocated in North America, they will use this technology. It's just that the degree of dependence is different. If Huawei is not stupid, then the main direction of its pre-research should be focused on this aspect."

Chen Datong immediately agreed: "Yes, MediaTek is one of our shareholders. If you're going to do something this big, they have the right to know. Keeping it a secret won't be easy. Even if we do it, we have to get rid of MediaTek first!"

"There's no need to rush. As for the cooperation, MediaTek knows, but just don't reveal the specific technology." Chen Xuebing's attention was diverted by these words, making him even more convinced that the "TD-LTE" prophet was valuable.

"Are these the only two 4G solutions currently being discussed internationally?"

Zhang Hao replied almost without hesitation: "There should only be these two. Behind every standard lies a long history and a wealth of patents. We need to consider not only the superiority of the technology but also the continuous R&D capabilities of global telecommunications professionals. Although WiMAX is a dark horse, it actually has the IEEE's years of R&D foundation behind it. However, from the perspective of historical investment, LTE is a smooth upgrade path for WCDMA technology, which can protect the interests of most developers. Moreover, LTE can theoretically only access the Internet and does not support making calls or sending text messages, which can also protect the interests of the world's vast 2G network. I think LTE should gain the support of most existing operators."

Chen Xuebing suddenly realized.

No wonder, back then, my phone would switch to 2G network and applications would disconnect from the internet whenever I made a call.

But it seems that the problem was solved later; it must have been due to a technological breakthrough, right?
“However,” Zhang Hao hesitated, “the US’s CDMA2000 is a 3GPP2 standard, which is different from the underlying technology of 3GPP. If 3GPP’s LTE is adopted, the US will lose its completely dominant standard. Given the US’s power, no one is sure whether it will push for the WiMAX standard.”

"Oh"

No wonder the third brother disappeared in the 4G era.

Thinking about it this way, WiMAX didn't go long from its sudden emergence to its failure, and the timeline for confirming the LTE route is still quite tight.

"What about TD technology? Is it possible for it to become one of the LTE standards?" Chen Xuebing asked again.

Zhou Guangping chuckled and replied, "Isn't this exactly what we've been discussing all night? The possibility is extremely high! Moreover, through high bandwidth and carrier aggregation, MIMO technology, plus improvements in frequency bands and coverage, we can greatly improve the performance shortcomings of TD3G! A 4G standard led by China—just thinking about it is exciting!"

Chen Xuebing's upgrade strategy gradually became clear, and a smile appeared on his face.

Developing a consistent communication standard can resolve many patent issues.

Fortunately, the country laid out communication standards early on; otherwise, we wouldn't even dare to think about system development. With just a word, they could cut off your calling and internet access functions. The CPU, baseband, and everything on the phone would be dictated to you.

Ultimately, a businessman's success depends on a strong nation.

If it were a China with abundant military power, he could have done even more.

Thinking of this, he gradually felt at ease. This period of frustration would not last long. Ten years later, in 2016, after the South China Sea incident, everything would be out in the open.

My thoughts gradually returned to the present.

"We need to accelerate 3G research and development, and quickly monetize Huawei's technical support. We are about to officially declare war on Datang."

These words made all four of them tense up.

It's easy for them to surpass the Tang Dynasty in terms of technological achievements; they actually achieved that long ago.

However, it's still unlikely to completely bypass Datang, as some basic patents are still restricted.

"When?" Wu Ping asked.

"Ming," Chen Xuebing paused, realizing it was already the next day. He looked at his watch and laughed, "You guys take a nap, and when you wake up, you'll see our challenge."

On such an important night, he was sleeping in the office next door so that he could be full of energy for the day ahead.

"So fast??" Wu Ping was stunned. "Should we go back to Shanghai first?"

Chen Xuebing chuckled and shook his head: "You and Teacher Chen should get some rest. Mr. Rong is here in Shanghai."

8: in the morning.

Shanghai, Zhangjiang.

It was the third day since Datang's legal team arrived in Shanghai.

A Jinbei van arrived at the Spreadtrum building on time during working hours. Five people got out of the van, ready to continue this negotiation that was destined to have no result.

Seeing the constant flow of people at the entrance and the large number of people watching them, Director Jin was quite satisfied and instructed his entourage:

"Today is the last day. Make sure to take good notes of the negotiations later. When you go in, make sure your employees know that Spreadtrum is doomed to lose!"

Having learned their lesson last time, they came prepared this time, with two objectives:

First, complete the so-called non-discrimination negotiations to prevent Spreadtrum from finding a reason to cause trouble with the ITU.

Second, it affected the morale of Spreadtrum Communications employees, causing them to panic.

A group of people, carrying briefcases, walked proudly through the Spreadtrum entrance, while Spreadtrum employees whispered amongst themselves.

Director Jin smiled slightly and, seeing the large crowd gathered in the lobby, prepared to walk through the most crowded area, which would likely spark more discussion.

But as soon as I went in, I heard a clicking sound.

Someone is taking pictures.

The person being photographed wasn't them, but rather Rong Xianwen sitting on a high stool.

Rong Xianwen smiled confidently, his voice echoing in the hall:
"Datang Telecom has weaponized FRAND negotiations in order to maintain its technological hegemony in 3GTD. We have consulted with the Shanghai government, and Shanghai supports us in filing a complaint with the International Telecommunication Union and initiating a legal lawsuit against the technology monopoly. We were also interviewed by the Beijing newspaper a couple of days ago, and the article should be published this morning. We hope that this rights protection will advance the legislative process of the national Anti-Monopoly Law."

"Oh." Rong Xianwen glanced at the group of people walking in from outside and said, "The legal team from the Great Tang Dynasty has arrived. You can ask them about the specific terms of the negotiation."

Director Jin, who had just entered, sensed something was wrong and wanted to leave.

But he was already surrounded by a group of reporters, and they almost shoved a microphone into his mouth.

"Hello, are you a legal representative of Datang?"

"I heard that you proposed bundling non-standard essential patents in this negotiation to broaden the fee base and indirectly increase the actual fee rate. Is that true?"

"You prohibit Spreadtrum from integrating third-party technologies into its collaborative technologies, otherwise it will be considered a breach of contract and trigger punitive damages. Are you trying to force Spreadtrum to abandon 3G research and development?"

Director Jin glanced at the microphone in front of him and saw that it was covered with logos of Shanghai media.

Shanghai Daily, Xinmin Evening News, and Oriental Morning Post.
We've been tricked.

Shanghai definitely got involved too.

These past two days, Spreadtrum has remained silent, offering no objections to the negotiations, and has even secretly submitted their negotiation terms to the Shanghai government!

He immediately retreated while saying, "The content of the negotiations is a trade secret. Please, media comrades, do not mislead us. Otherwise, we reserve the right to pursue legal action." These newspapers were sent by the government.

What's Shanghai's status? A bunch of uncrowned kings, do you think they'd be afraid of a stranger like you pursuing legal action?

"I heard that you also require that all Spreadtrum's global chip sales be adjudicated in Chinese courts, and that any disputes must be under the jurisdiction of the Beijing Intellectual Property Court. Is this reasonable under international conventions?"

"We refuse to answer!"

Director Jin roared as he hurriedly turned back to his car, slammed the door shut, and pulled out his phone to frantically make a call.

"Hey! Boss Zhen! We've been cornered by reporters from Shanghai! I just heard they even contacted the media in Beijing!"

A deep voice came from the other end: "I already know. Convene a board meeting immediately. You all go back to the hotel and rest, and await the board's next decision."

Shenzhen, SEG 58.

Chen Xuebing's attack, which he had been secretly preparing for for several days, was launched this morning.

Ren Ying found him several printed copies of the newspapers published that day at 10 o'clock.

The Communications Industry News: "TD Live Network Performance White Paper," an authoritative industry report that clarifies technical controversies.

Caijing: Spreadtrum Communications may countersue Datang Telecom; should technological hegemony exist?

21st Century Business Herald: "Laboratory Data ≠ Live Network Experience: Spreadtrum Attacks TD Commercialization as 'The Emperor's New Clothes'"

Huashang Daily: The Tragedy of Domestic Standards: Is Policy Protection a Cradle or a Cage?

None of these are sharp enough.

This time, the vanguard was BJ, a conscientious media outlet known for its conflict-driven and critical narratives, adept at approaching public issues from a people's perspective, and never letting its sponsors down.

The New J newspaper launched its attack with a large-page report.

— "Domestic 3G Standard's Actual Tested Speed ​​Falls Below Half of Promised Speed; Consumers May Become 'Guinea Pigs'?"

The entire article is divided into four sections.

1. Addressing Pain Points in People's Livelihoods: A Comparison of User Experiences
Comparing consumer experience between the BJTD-SCDMA test network and the Shanghai WCDMA test network:
"According to feedback from TD test users in Zhongguancun, Beijing, video calls experienced an average of 3 stutters per minute, while WCDMA users in Lujiazui, Shanghai, were able to watch the World Cup live smoothly."

An anonymous source from a telecom operator stated, "Their TD handsets are prone to overheating, and their battery life is only 60% of that of WCDMA phones!"

2. Data questioning:
"Datang claims a peak TD speed of 1.6Mbps, but Qidian Technology's actual test results in multiple scenarios show an average speed of only 0.5Mbps, less than one-third of the promised value."

In an interview, Professor Li from Beijing University of Posts and Telecommunications said, "TD's time-division duplex characteristics have a natural disadvantage in urban multipath environments. Datang has overstated the maturity of its technology, but has failed to prove it in the latest technical tests."

3. Industry impact:
The cost of delaying the issuance of licenses may be passed on to consumers.

Mr. Chen, a domestic mobile phone manufacturer, believes that "the technological iteration of 3G mobile phones is very comprehensive. If the issuance of 3G licenses continues to be delayed, the relevant supporting technologies in China will not be able to develop. The domestic software and hardware supply of 3G mobile phones will be left behind by foreign manufacturers. Manufacturers will be forced to use a large number of foreign supplies, and the cost will be borne by domestic users."

It is understood that the Ministry of Information Industry has always pinned its hopes on Datang Telecom for the development of domestic 3G communication standards. However, due to Datang's poor research and development, the domestic 3G standard has been delayed.

4. Questioning the legitimacy of the Tang Dynasty's dominant position:
Should the investment of billions in "independent standards" prioritize technological feasibility over political symbolism?

Comparing the development history of CDMA in South Korea: "The South Korean government forcibly promoted CDMA in 1996, but switched to WCDMA in 2002. my country needs to avoid repeating the same mistakes."

The concluding question is: "Should we pay the price for a single technological approach by incurring the communication risks associated with the 2008 Olympics?"

The sharp and incisive language is still a style that the common people enjoy.

It is well worth Mr. Chen's million-dollar donation.

This newspaper was very convenient. Apart from quoting Chen Xuebing's original words, it wrote a lengthy two or three thousand words without using any other data provided by Chen Xuebing. Instead, it produced a bunch of damaging information about Datang.

But when Chen Xuebing saw the last few sentences of the newspaper, he frowned and cursed:

"Damn it. What's with all this blatant and subtle targeting of WCDMA? Could it be that they've been pocketing money from other people along the way?"

"Should I call them and ask?" Ren Ying asked.

"No need." Chen Xuebing knew the nature of this media outlet and waved his hand, saying, "The Ministry of Information Industry is already aware of the situations mentioned today. No matter how much they fight, they can't give up TD's priority status. It's just putting more pressure on Datang. Next, we'll wait for Datang to retaliate, and then we'll release the technologies we've mastered one by one, let the Ministry of Information Industry see some impressive work, and prove ourselves."

As he spoke, he tapped his fingers on the table: "We are victims of patent hegemony, so we should be passive in our stance, but our counterattack must be ruthless! By the way, as partners of Singularity and Spreadtrum, let's also announce the mobile phone system we developed, and target their Arena system, issuing a comprehensive challenge to them."

Ren Ying was taken aback: "Kunlun is also using this to wage a propaganda war against Spreadtrum?"

"Well, didn't they collaborate with Kotei Century a few years ago to develop a mobile phone system? They said we've been working hard to completely surpass Datang in technology for a long time and have been developing a mobile phone system for a long time. I think it's a perfect excuse to advertise."

After much deliberation, Chen Xuebing felt that this was actually a good opportunity. First, it could be publicized in advance, and second, the birth of Kunlun could be packaged as a product of technological confrontation, which would make it less aggressive in the eyes of the West.

“But Kunlun is still based on the general Linux kernel. If we directly promote it as a system, won’t we be questioned?” Ren Ying frowned.

"It seems you're not as knowledgeable about this as I am. The user space, such as the UI and application framework, is our own. We only used Linux's underlying Hardware Abstraction Layer (HAL), and we modified HAL's power management, process scheduling, input system, etc. This kernel is no longer a general-purpose kernel, but a real mobile phone kernel. We are also developing our own software development kit, which is actually an independent branch. Calling it a system is not a problem."

As he spoke, he took a cell phone out of the drawer, turned on the screen, and placed it on the table.

"Developing a mobile phone operating system takes a very long time. Do you know what the operating system for this phone is called?" Chen Xuebing asked with a smile.

Ren Ying leaned closer to take a look and shook her head.

"It looks like a Blackberry? But it doesn't."

She was also studying like crazy, and with the Gu'an platform, her knowledge was expanding, but she still couldn't recognize it.

It's impossible for them to recognize it.

This was an engineering prototype; it was never released to the market. Chen Xuebing had Lin Bin find several channels to get it from HTC.

“This system is called Android,” Chen Xuebing said with a smile. “It has been under development for almost three years. Their founder, Lu Bin, is very innovative. He initially wanted to develop an operating system for digital cameras, but later turned to the field of smartphones. It uses the same Linux kernel as us, and this is what it has achieved so far.”

This is what Android looks like now.

Their founders were unaware of the arrival of the touchscreen era before Apple's release, and the engineering samples they recently tested in collaboration with HTC were still based on keyboard operation.

Ren Ying held it in her hand and played with it for a while.

"The same kernel but a very different operating logic."

"The kernel manages the execution, while the core functions and operating logic are in user space. It takes several years of adjustments to go from using Linux to being compatible with Linux, and then to replacing Linux."

"Huh?" Ren Ying was taken aback. "I thought you would completely change HAL before releasing it! According to the Linux GPL license, your modifications to the kernel must be open source!"

She didn't know much about programming, but she had looked up the open-source rules for Linux.

“Of course it should be open source,” Chen Xuebing said matter-of-factly.

"We've done so much, and it's all open source?"

"Ah."

"The UI is also open source?" Ren Ying found it unbelievable.

"No need for that. The UI and application framework run in user space and interact with the kernel through inter-process communication. Things that don't directly link to GPL code don't need to be open source. We can give them to others to use for free, or we can stop them at any time."

"Oh," Ren Ying breathed a sigh of relief, then said regretfully, "So, all those modifications we made to the kernel are just open-sourced for others to use?"

Chen Xuebing laughed and said, "Systems have never been a competition of a few lines of code. Success requires a huge application ecosystem. If we don't even give them this little benefit, how can we get developers to participate? Developers want to flash ROMs and have freedom. We can't create obstacles for them."

"What if phone manufacturers copy our modified underlying technology and develop their own UI?"

Chen Xuebing smiled mysteriously.

"That's not something you can just copy. There's a big difference between commercial and non-commercial use."

(End of this chapter)