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First, the state of the mobile industryand the contribution it made to the economy
Over the past two decades, themobile/wireless industry is one of the few industries in the world that aredriven by innovation and grew very fast. According to historical statistics,data consumption annually grows 10 times every year. Innovativetechnologies make mobile terminal computing faster and faster, whilesignificantly reducing costs of data traffic, consumer costs, and energyconsumption. According to statistics for the first quarter of this year,a total of 7.4 billion mobile terminals connect around the world, andthis figure is on the track of constant growth. Innovation is a veryimportant driving force behind development of the mobile industry. Overthe past few years, China's mobile industry has developed rapidly.Since just a few years ago when LTE came to China market, it hasattracted 500 million users now. Chinese companies work constantly hardto launch new businesses, services and products. And among theworld's top ten 3G and 4G mobile enterprises, China takes six seats. Thedevelopment of the mobile industry plays a significant role in promotingsocioeconomic development. Totally, the mobile industry accountedfor 3% of China's GDP and it is expected by 2020, the share can beincreased to 4.7%. With development of the mobile industry, it also hasa significant effect to enhance efficiency of labor. By usingmobile technology, it added additional $90 billion to China's GDP andprovides the communities with two million jobs. Therefore, the mobiletechnology does make its contribution to a variety of economic fieldsfor development of China's and the world economy.
Second, the power of sharing andcooperation
Cooperation and sharing is an importantfactor in promoting innovation. Qualcomm began to invest intechnology since its inception. Although at very beginning it faced verycomplex challenges, once these issues were resolved, they became newbusinesses of Qualcomm. Through authorization, Qualcomm may provideother companies more chips and software to help them to form their ownsolutions to solve problems, and ensure that they can quickly establish theirbusiness models to the market. Therefore, cooperation and sharing caneffectively drive up our innovation speed and efficiency. And the spirit of sharing is an important starting point for us to establish aninnovative society in the future. In China, cooperation betweenuniversities and enterprises is quite common and very extensive. Furtheropening of the market provides more opportunities, which will furtherpromote innovation.
Third, innovations in the mobileindustry
Computer technologies, such as logon to theInternet, download of videos or use a variety of computing power, etc. that areseemingly common in our daily life are in fact extremely complex, and are veryexpensive to develop. Since 2000, the total investment of the mobile industryis about $800 billion, and only with such huge investment we now have reachedsuch a level of technology. However, if we look into the future, the existing technologiesare only at the entry level. We got a lot of things to do to enhance mobile technologiessuch as the cellular mobile technology. We need to further promote developmentof 4G and LTE technology, and we will get into the 5G era very soon. In the eraof data explosion, we need to solve a lot of practical problems with highestpossible efficiency. This means we need to use new technologies, means we mustbear affordable costs to improve data technology, and means we need toconstantly make innovations. Talking about the mobile industry innovation, itmakes us recall our memory that at the early stage of this industry we neededto provide more computing power for voice transmissionand for data transmission services. In Qualcomm opinion, these technologies arepain points of the entire industry, and are keys to development of the industry.However, the investment risk in these areas is huge. Before commercialization ofa technology, it often may take eight to ten years and billions of dollars ofdevelopment costs. Companies need to make great efforts to ensure successfuldevelopment and commercialization of the technologies they develop.Commercialization is not an easy thing. It requires us to develop a technology thatis acceptable by the entire industry, requiring interoperability betweendifferent mobile devices. The market is open and competitive. On the road of developmentand commercialization, it is filled with a variety of risks. Any innovativeenterprise must overcome all challenges and difficulties to create value forconsumers, and win favors from the market. Precisely, it is just innovationsthat can completely change the industry, and change people's lives. Therefore,we need to institute a better social incentive mechanism to ensure that thesecompanies can take risky R&D investments. And at the same time, we need abetter environment to drive sustainable inputs in innovation. Qualcomm can playa very important role in this regard. In China, major changes have occurred tothe whole environment. These changes are conducive to sustainable developmentof innovation. In a good environment, we need to accelerate innovation process;and meanwhile we need to pay importance to protection of intellectual propertyrights, protecting the rights and interests of enterprises and technology researchers,and ensuring technology users to bear affordable cost of technology. Therefore,we need laws and regulations to regulate the industry, and to providerecommendations of appropriate incentives and policies to the government. TheChinese government pays great importance to reform, and also makes a lot ofefforts and contributions for protection of intellectual property rights, whichwill help foster entrepreneurial spirit. In terms of policy of IP protection,the Chinese government has achieved fruitful results. Chinese companies havebecome an innovation force in the world. China's development model could becomea template for other developing countries and regions. With the launch of thenew five-year plan, the entrepreneurship and the commitments to innovation hasbeen attached great importance to. In the future, China's economy will be basedmore on innovations and entrepreneurship.
Fourth, to increase investments ininnovation in the mobile industry
Over the past ten years inside, the maintask of the mobile industry is to connect people together, connect people andthings together; in the next ten years, we need to connect billions ofdifferent objects and instruments to the Internet and that requires great innovationsin our data centers and other areas. To ensure that our current Internetplatform can be extended to incorporate more things, we need to carry out a newround of investments in the technological innovation. Mobile industrydevelopment is very important to many industries, such as the automotive industry.Automotive industry now increasingly demands certain internet and mobiletechnologies. If a car is connected with Internet, it can provide people with moreservices, and can better ensure security. Another example is that mobiletechnology also has a greater role in promoting building of smart cities. Theuse of intelligent service can alleviate or solve traffic congestion in cities.In addition, for medical services, by using mobile technology and innovationsthrough our wireless network connections, it can help doctors conduct emergentdiagnosis, can help people in many regions easier access to health services andreduce health care costs, and can provide customized services to patients viathe mobile network, and for hospitals, help them open up new markets. Thus, themobile technology industry has played a powerful role in promoting developmentof many diversified service industries. Qualcomm has been in China for twentyyears, and maintained close cooperation with China's mobile industry. In thedevelopment of China LTE, we have a lot of partners. We also hope to helpChinese partners go to the international arena. We are very optimistic aboutChina's development in science and technology and innovation. Recently,Qualcomm and China's Thundersoft have jointly set up a joint venture which willprovide technical supports for development of Internet of Things. Qualcomm hasassisted the Guizhou Government to establish a large data service in Guizhou province.And Qualcomm and ZTE Group have reached a cooperation agreement. Qualcomm willcontinue investing in technological innovation in China, and hope to providemore resources for social innovation in the whole process of economicdevelopment.
Fifth, conclusion
Mobile technology plays an important rolefor rapid development of the world economy. By 2015, the mobile ecosystem madea contribution of 4.2% to global GDP, equivalent to an economic value of $ 3.1 trillion,and created 17 million direct jobs. Qualcomm hopes to work together with ourpartners in China to promote development of mobile service industry, and iswilling to contribute its efforts to future development of the industry.
(This article is edited based on the recording and has not been reviewed by the speaker.)
