Those Years When I Was Forced to Top the Forbes List

Chapter 278 The Straightforward Game Changer (Part 1)
Vice Minister Zhang did not express dissatisfaction with Chen Xuebing's actions; instead, he revealed a subtle smile.

He wanted to see if there would be any surprises if he moved this tough nut to someone else to tackle.

"Ah, the global 3G business has been steadily growing since 2004."

The speaker continued speaking, and the audience quieted down.

"President Wang," Chen Xuebing leaned closer to Wang Jianzhou and whispered.

Wang Jianzhou glanced at him, then looked back at the stage and interrupted in a low voice: "President Chen, Director Zhang came to see me yesterday afternoon, and we talked. I already know about your situation."

Chen Xuebing paused for a moment, pondering the key information in the words.

Wang Jianzhou arrived in Shanghai yesterday afternoon and had already checked his own information; otherwise, he wouldn't have recognized him so soon after arriving.

Today, however, he deliberately arrived a few minutes late, taking advantage of the time after Vice Minister Zhang took the stage to enter. He did not take the name tag in front of Vice Minister Zhang, but used this action to distance himself from other TD alliance members.

This premeditated statement indicates that Wang Jianzhou, after careful consideration, still does not want to operate TD.

After thinking it through, Chen Xuebing asked, "What did Director Zhang say to you? What are your concerns?"

Wang Jianzhou didn't answer, but instead stretched a hand out from under the table: "Could I take a look at your cell phone?"

Chen Xuebing hesitated for a moment, then took out his phone from his pocket.

When Wang Jianzhou saw the screen, he showed a slight look of surprise, but not much.

Vice Minister Zhang had already described the phone to him yesterday, so he had an idea of ​​what to expect and quickly got the hang of it.

This time, the two remained silent for a long time. Wang Jianzhou didn't ask him anything. Instead, he put himself in the position of a user and tried out various functions on the phone. He even accidentally opened a game, making a sound. Chen Xuebing immediately reached out and pressed the mute button on the edge for him.

—This phone has a new SIM card inserted, it's for demonstration purposes, and no one calls it normally, so Chen Xuebing forgot to put it on silent.

Wang Jianzhou finally smiled upon seeing the simple mute function, clearly very satisfied.

How much did it cost to manufacture this phone?

Around three thousand two hundred.

As soon as Chen Xuebing made his offer, Wang Jianzhou immediately frowned.

Knowing that he thought it was too expensive, Chen Xuebing reached out and opened the photo album in front of him, then held the phone horizontally.

The screen switched to landscape mode.

"The gyroscope for this Japanese game console alone costs 300 yuan. The sensors and high-priced components for screen rotation, photo stabilization, answering calls while shaking, gesture operation, and other related functions add another 200 yuan to the cost. It has a lot of technological elements, and you get what you pay for."

Wang Jianzhou tried it out again, mentally assessed the functions, and then slowly asked, "If these functions are not used, can the cost be reduced to around 2700?"

Chen Xuebing grinned. Wang Jianzhou was probably only considering the cost of a practical contract phone, but he couldn't understand his own mindset.

His goal in creating this phone was to show users what a truly complete smartphone should look like, to enhance user taste, to solidify market perception, and to forever position this series of phones at the pinnacle, thus creating a high-end fan base.

Why do luxury goods have such high premiums?

There is a group of high-end people who admire it. They want the most exquisite materials and the latest designs. It is a social capital and a symbol of status. Ordinary people, on the other hand, yearn to gain a sense of superiority by using the same products.

The Mythical Beasts series takes into account both the export of Chinese culture and the high-end brand narrative. All the functions of future smartphones will be showcased for the first time in this series, so the configuration must be top-notch.

It's like a mythical beast, a totem.

Chen Xuebing took the phone back from his hand and said:

"This is our high-end brand. We use the best materials, components, chips, and systems. We don't plan to make contract phones. If Mr. Wang needs a cheap smartphone with a contract, we have a version with a cost of less than 2000 yuan."

When Wang Jianzhou's hands were empty, he was surprised.

Since the introduction of contract phones during the 2G era of China Mobile, ZTE, Huawei, Lenovo, and even many foreign mobile phone manufacturers have all focused on entering the contract phone market. It's a way to make money effortlessly, without having to worry about sales, just focusing on production.

Otherwise, the profits taken by distributors in the sales process alone would be enormous, and without the support of the operator's vast sales network, there is also the risk of inventory buildup.

He really liked this phone; for a moment just now, he even imagined customers lining up in long queues at the mobile service center.

The price is negotiable!

Wang Jianzhou is a man with a keen sense of smell. In his previous life, he arranged for his team to go to the United States in 07 to start negotiations with Apple's first-generation phone, two years earlier than China Unicom. However, because the TD protocol standard he was leading was incompatible with Apple's baseband, and Apple was unwilling to make a TD version, the negotiations never went through.

Chen Xuebing understood this, so he was unwilling to let him succeed easily.

They didn't even intend to let him succeed.

Contract phones are deeply bundled, which greatly restricts their independent sales.

The Qilin is the moon hanging high in the sky, and what Chen Xuebing plans to sell are the stars adorned by the moonlight.

Wang Jianzhou was not bothered by Chen Xuebing's cold attitude; on the contrary, his smile deepened.

"This phone is really good, Mr. Chen. It should be able to support multiple networks, right?"

In his view, the buying and selling of mobile phones is a business transaction and has nothing to do with which communication standard is used. This cannot be the basis for negotiating which standard mobile operators should use.

It's nothing more than a matter of money; we can discuss it and that's it.

Chen Xuebing shook his head: "Mr. Wang, you probably forgot that Qualcomm has a reverse licensing agreement. WCDMA incorporates many of Qualcomm's underlying patents, while CDMA2000 is completely dominated by Qualcomm. Therefore, the mobile phones we produce will never use WCDMA or CDMA2000, nor will they use any of Qualcomm's communication modules."

This is a long-standing problem. As long as the Qualcomm communication standard is used, even if the system is operated independently from Singularity, Singularity phones will have to provide all their system optimization, hardware design, and chip design to Qualcomm users free of charge.

This is simply unimaginable for a high-end mobile phone manufacturer.

Upon hearing this, Wang Jianzhou's expression changed.

He then realized that the mobile phone manufacturer in front of him had grand ambitions. Before the phone was even released, they weren't worried about sales volume; instead, they prioritized patent issues.

This is completely unlike the standards of Chinese manufacturers.

"How about we talk to Qualcomm about this for you? Spend some money to get Qualcomm to drop your anti-licensing restrictions, and we'll subsidize that for you."

"Spend some money?" Chen Xuebing emphasized the word, then chuckled, "Mr. Wang, you're probably underestimating our phones. We're developing a completely independent standard, and this standard will become increasingly valuable. You want Qualcomm to open it up completely to us? That's probably going to be an astronomical price."

How much did Apple spend to settle its patent dispute with Qualcomm in its previous life?

A one-time payment of US$5-6 billion, or more than RMB40 billion.

Furthermore, after the settlement, each phone will still need to pay a patent licensing fee of $8-9.

How did Huawei solve this problem?
When Qualcomm dominated the 3G era, Huawei phones were still playing the low-end game and didn't attract any attention.

Later, Qualcomm was restricted by joint antitrust measures from China and the European Union. Huawei still had to cross-license its 3G and 4G communication technologies with Qualcomm and paid $18 billion in one go. Later, Huawei gained a patent advantage in the 5G era, forcing Qualcomm to make concessions in negotiations, which brought peace to Huawei.

The cost they paid during that period even exceeded that of Apple.

In this era, if a mobile phone doesn't have its own communication technology support and is targeted by Qualcomm, it's basically doomed.

“However,” Chen Xuebing added, “we will provide this system and procurement standards to other manufacturers. If they want to use the Qualcomm standard and are willing to pay Qualcomm a 5% licensing fee and contribute their own patents to Qualcomm, that’s their business.”

As long as Kirin is not restricted, the system is easy to solve; just copy Android's approach.

The system is designed as two parts.

The open-source component (AOSP): the basic code that anyone can use.

Closed-source component (MS): App store, core services such as network interaction and operation and maintenance.

By controlling the non-open-source parts of MS, Kunlun System requires device manufacturers to sign agreements, allowing the system to circumvent Qualcomm's terms by retaining core patents.

"Mr. Chen, are you playing a big game, aiming to become the next Qualcomm?" Wang Jianzhou suddenly laughed. "However, by investing in Spreadtrum and taking the TD route, you've narrowed your path. Since you chose to license to other manufacturers instead of closing the market, you should also understand that these things can't prevent others from copying them."

When it comes to mobile phones, if you create something new and want to guide others to do the same, everyone is willing. But if you try to keep things closed off, many people will try to copy you.

Therefore, this phone is unlikely to become an absolute advantage in a communication standard; in the long run, other communication standards will naturally emerge.

Chen Xuebing, however, laughed without hesitation.

"Mr. Wang, are you still dreaming that the higher-ups will issue WCDMA to China Mobile? That standard belongs to China Unicom. Even I understand it. Don't you understand? What you're striving for now is nothing more than CDMA2000."

Wang Jianzhou's smile gradually faded. Of course, he wanted to get WCDMA, although the possibility was relatively small, but he was still trying.

As Chen Xuebing said, the possibility is indeed very small.

"Mr. Wang, I'd like to ask you a question," Chen Xuebing continued.

"Ah."

Mr. Wang was already in a bad mood.

Chen Xuebing, however, paid no attention to his feelings and kept swaying from side to side, still because the pressure wasn't great enough.

We need to put some pressure on him. "Do you think that even if China Unicom gets WCDMA, they'll be your competitor?"

Wang Jianzhou chuckled inwardly, but still cautiously replied, "It's hard to say."

That was certainly not what he really thought.

China Unicom is a pitiful little thing right now. Even if it gets WCDMA, it won't be able to compete with the two giants, China Mobile and China Telecom, for several years.

China Mobile and China Telecom could easily bankrupt China Unicom by subsidizing contract phones with their massive cash flow.

Chen Xuebing understood perfectly well, and laughed, "You're too modest, Mr. Wang. China Unicom can't beat you."

Mr. Wang chuckled.

Chen Xuebing continued, "However, if China Telecom wins the TD contract, things will be different. Since there are three companies competing in the Chinese market, why don't you try to think from their perspective?"

Mr. Wang glanced at him.

You know I haven't been thinking about it? I think about it every single day!
Chen Xuebing continued.

"China Telecom currently does not have a mobile network license, only a fixed-line license, and has no experience in operating a mobile network."

"Yes." Wang Jianzhou nodded happily.

“Under normal circumstances, they might have to wait until 3G is issued before they can have it, but if they agree to operate TD, they will have it immediately.”

"Hmm." Wang Jianzhou had to admit to this as well.

"Moreover, they can build the network in advance, giving them ample time to make up for their lack of experience in operating mobile networks."

"Hmm," Wang Jianzhou said, somewhat annoyed.

“We have a mobile internet mindset, and many of our ideas are far ahead of yours, as this phone proves.”

"What do you mean?" Wang Jianzhou frowned deeply.

Chen Xuebing grinned: "What I mean is, if you don't want to talk, I'll talk to the telecom company about how to operate the mobile internet and how to expand data usage. We have many ways, and they can gradually take control through the trial operation rights of TD."

Wang Jianzhou finally forgot about the stands, turned his head, and stared intently at him.

Chen Xuebing's smile deepened: "What you've been striving for might just be CDMA2000, a mid-tier machine. No, even with our help, it might not be a mid-tier machine; it could be a low-tier machine. And you'll have to watch them develop using TD. When you finally manage to get CDMA2000, you'll be facing an opponent just as strong as you."

"And we will definitely have the telecom company suggest to the higher-ups that the issuance of 3G licenses be delayed, giving our own technology enough time to develop, and using the TD franchise to try to make you and China Unicom put into a long wait."

"This is the price you have to pay for not actively implementing national standards."

Chen Xuebing's tone was like a step-by-step interrogation and judgment.

After saying that, his eyes cleared up, and he looked at Wang Jianzhou with a kind and inquiring gaze.

"Mr. Wang, do you think the telecom company would listen to what I'm saying?"

Mr. Wang didn't say anything, but his eyes were already blazing with murderous intent.

“Mr. Wang,” Chen Xuebing’s smile turned sharp again, “if you don’t answer me, I’m going to go find the telecommunications company.”

"."

"I'll go after the meeting."

"."

"The phone will be launched soon. The 3G era is very important to me, and I really can't wait. Oh, by the way, you don't have a fixed-line license yet, right? My phone is still working on the WIFI module. Huawei is cooperating with us. Once domestic routers are launched, the demand for broadband should increase significantly."

Mr. Wang closed his eyes.

He wondered if China Mobile could crush China Telecom, which had already obtained the license, if it acquired CDMA2000.

This was a new idea, and he couldn't quite grasp it at first.

Because there was no factor of "telecom building the network in advance" before, when telecom was operating the network for the first time, it would not compromise on the worst TD network. In addition, the higher-ups preferred China Mobile to use TD, so telecom would definitely drag things out with China Mobile to the end.

Now, some key variables have emerged: a TD merchant with considerable leverage is also bringing some disruptive ideas.

Then, considering the opposite perspective: if China Mobile had launched TD earlier, what would have happened compared to China Telecom, which had delayed obtaining its 3G license…

Then, this troublemaker, TD, stood on his side.

Everything became clear.

“You’ve asked me so many questions, so I’ll ask you a few too,” Wang Jianzhou said.

"You ask."

Just as Chen Xuebing began to speak, Vice Minister Zhang finished speaking and then presided over the meeting to welcome the next speaker, General Manager Zhou of Datang.

Zhou Huan slowly walked onto the stage, looking at Chen Xuebing with undisguised hostility.

And Wang Jianzhou.

Wang Jianzhou laughed and pointed at the stage without any attempt to hide his laughter.

"This is the first problem: Datang and Spreadtrum each have their own standards, so which one should TD follow?"

When Zhou Huan saw Wang Jianzhou pointing at him and laughing, his breathing became even more labored, and he slammed his hand on the microphone in front of him.

Soon, a PowerPoint presentation appeared on the screen behind him, displaying a chart of "TD technology milestones".

"Respected leaders and industry colleagues, good morning. It is a great honor to be here in Shanghai this autumn to discuss the development of China's 3G industry with you. As a major promoter of the TD-SCDMA standard, Datang Telecom has always been committed to the industrialization of China's independent communication standards with a sense of awe."

"Over the past six years, through the concerted efforts of all parties in the industry chain, we have achieved exciting breakthroughs. In particular, this year, our DSP reference design, jointly developed with Analog Devices (ADI), has successfully solved several technical bottlenecks in the development of TD-SCDMA terminals."

"During the industrialization process, we also encountered some technical challenges, but we never gave up..."

"The maturation of any new standard takes time and requires the understanding and support of all parties in the industry chain."

"But recently, I've noticed a worrying phenomenon."

At this point, Zhou Huan switched the PPT presentation to "The healthy development of the industry requires the joint efforts of all parties."

"Some companies, while enjoying the benefits of national policies, lack due respect for independent standards. They prefer to focus their energy on hyping up concepts rather than solving technical problems in a down-to-earth manner."

"What's even more perplexing is that some companies, under the guise of technological innovation, are actually trying to bypass the industrial ecosystem we have worked so hard to build. This practice is not only disrespectful to the thousands of TD R&D personnel, but also a threat to the healthy development of the entire Chinese communications industry."

Zhou Huan's words have already caused some uproar.

However, since he did not name names, Vice Minister Zhang did not forcefully interrupt him. The reporters behind him were a bit at a loss, unsure of how to describe the situation afterward.

Criticism? Or an appeal?
Bombardment?

"It seems my estimation was wrong; you haven't solved the standard issue yet," Wang Jianzhou said to Chen Xuebing, his tone teasing.

Chen Xuebing's gaze was calm, but he did not seem surprised.

"He can say whatever he wants, it won't affect anything. Mr. Wang, is this your only question? Does obtaining our own standards mean we can start discussing cooperation?"

Wang Jianzhou's eyes began to show a hint of appreciation; this young man had good composure.

"I heard you've broken through the peak data rate limit of TD? What are your next R&D plans?"

“Smooth evolution to LTE,” Chen Xuebing said almost without hesitation.

This is a common choice for many international telecommunications companies, there's nothing wrong with that, and it's essential to reach a consensus with operators as soon as possible.

"Smooth evolution?" Wang Jianzhou asked with some skepticism, "How much money are you planning to invest in research and development?"

Foreign telecommunications companies earn US dollars and euros, which is incomparable to companies like Spreadtrum that are still earning RMB.

This industry requires a huge investment, which is beyond the reach of most companies.

"Any more questions?" Chen Xuebing asked in return.

"The rest... are all minor issues." Wang Jianzhou said, smiling at the line of text on the PPT on the stage: "Don't expect anyone else to really help you. I've met many of the people in this venue before, not just at the TD Industry Conference."

Chen Xuebing glanced back, and some people who were staring at them immediately looked away, but the smiles of watching the spectacle on their faces did not disappear.

No matter how big the TD incident gets, in some people's eyes it's just a spectacle.

Chen Xuebing pondered for a moment, making a decision.

"Wait a moment, I'll answer these questions all at once later."

After saying that, he stood up in full view of everyone and walked towards the back door.

(Finish writing this today)
(End of this chapter)