Home Mobiles Huawei has 'completely taken over' the Mobile World Congress – Yahoo Finance

Huawei has 'completely taken over' the Mobile World Congress – Yahoo Finance

24 min read
0
23

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Washington’s campaign to restrict the integration of Chinese telecommunications equipment maker Huawei in 5G networks shifts to Barcelona this week as global industry leaders gather for an emergency meeting on the sidelines of the Mobile World Congress (MWC) to discuss the possibility of excluding the Shenzhen-based vendor from European markets.” data-reactid=”15″>Washington’s campaign to restrict the integration of Chinese telecommunications equipment maker Huawei in 5G networks shifts to Barcelona this week as global industry leaders gather for an emergency meeting on the sidelines of the Mobile World Congress (MWC) to discuss the possibility of excluding the Shenzhen-based vendor from European markets.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="While the U.S. has successfully lobbied close allies Australia, New Zealand, and Japan to block the use of Huawei equipment in its 5G infrastructure on national security grounds, it has faced increasing pushback in Europe amid cost concerns and skepticism over Washington’s claims that the company poses a risk.” data-reactid=”16″>While the U.S. has successfully lobbied close allies Australia, New Zealand, and Japan to block the use of Huawei equipment in its 5G infrastructure on national security grounds, it has faced increasing pushback in Europe amid cost concerns and skepticism over Washington’s claims that the company poses a risk.

‘The Huawei issue has now completely taken over‘

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Earlier this month, GSMA, an industry group and host of MWC in Barcelona, cautioned against restrictions on Chinese equipment. GSMA stated that European telecom operators and citizens would end up paying the cost while 5G deployment would delayed years across Europe.” data-reactid=”18″>Earlier this month, GSMA, an industry group and host of MWC in Barcelona, cautioned against restrictions on Chinese equipment. GSMA stated that European telecom operators and citizens would end up paying the cost while 5G deployment would delayed years across Europe.

“Barcelona is normally the place where deals are made, with big announcements about carriers choosing equipment suppliers and discussions about 5G use cases,” Paul Triolo, Head of Global Technology Policy Analyst at Eurasia Group, told Yahoo Finance. “The Huawei issue has now completely taken over the normal course of events.”

All of this sets the stage for a U.S.-China showdown of sorts at the annual event better known for unveiling tech gadgets than foreign policy.

(Graphic: Yahoo Finance/David Foster)

View photos

(Graphic: Yahoo Finance/David Foster)

‘No way U.S. can crush us’

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Huawei and Washington have been engaged in a public battle in the lead-up to the conference. On a recent trip to Hungary, Secretary of State Mike Pompeo suggested that relations with allies would suffer if they refused to restrict Huawei equipment, saying “if that equipment is co-located where we have important American systems, it makes it more difficult for us to partner alongside them.”” data-reactid=”42″>Huawei and Washington have been engaged in a public battle in the lead-up to the conference. On a recent trip to Hungary, Secretary of State Mike Pompeo suggested that relations with allies would suffer if they refused to restrict Huawei equipment, saying “if that equipment is co-located where we have important American systems, it makes it more difficult for us to partner alongside them.”

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Huawei founder Ren Zhengfei dismissed U.S. accusations that Beijing could use the company’s vast network as a tool for surveillance, telling the BBC that his company “would never undertake any spying activities.” He added that there’s “no way [the] U.S. can crush us.”” data-reactid=”43″>Huawei founder Ren Zhengfei dismissed U.S. accusations that Beijing could use the company’s vast network as a tool for surveillance, telling the BBC that his company “would never undertake any spying activities.” He added that there’s “no way [the] U.S. can crush us.”

A slide from a Huawei presentation shows the company's development of 5G technology. (Photo: Huawei)A slide from a Huawei presentation shows the company's development of 5G technology. (Photo: Huawei)

View photos

A slide from a Huawei presentation shows the company’s development of 5G technology. (Photo: Huawei)

Washington has repeatedly pointed to Chinese legislation passed in 2017 allowing the intelligence agency to compel individual organizations to “provide necessary support, assistance, and cooperation” as proof that Huawei cannot be trusted.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="But while the U.S. Department of Justice has filed criminal charges against the company — alleging theft of trade secrets, bank and wire fraud, violations of Iran sanctions, and conspiracy to commit money laundering — it has not provided public evidence proving Huawei created back doors to spy or disrupt communications.” data-reactid=”65″>But while the U.S. Department of Justice has filed criminal charges against the company — alleging theft of trade secrets, bank and wire fraud, violations of Iran sanctions, and conspiracy to commit money laundering — it has not provided public evidence proving Huawei created back doors to spy or disrupt communications.

‘You have different countries taking different sides’

The issue is particularly complicated for some European countries, where Huawei accounts for 50-to-80% of existing mobile infrastructure and telecom providers have already begun integrating its equipment as part of a broader 5G rollout.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Recent reports suggest the UK and Germany are unlikely to push for an outright ban but may find ways to limit the risks while integrating Huawei equipment in 5G networks. Others like Poland are considering shutting out the Chinese company altogether after a Huawei employee and a Polish employee of the telco operator Orange were arrested on spying allegations.” data-reactid=”72″>Recent reports suggest the UK and Germany are unlikely to push for an outright ban but may find ways to limit the risks while integrating Huawei equipment in 5G networks. Others like Poland are considering shutting out the Chinese company altogether after a Huawei employee and a Polish employee of the telco operator Orange were arrested on spying allegations.

A slide from a Huawei presentation shows where various operations are located. (Graphic: Huawei)A slide from a Huawei presentation shows where various operations are located. (Graphic: Huawei)

View photos

A slide from a Huawei presentation shows where various operations are located. (Graphic: Huawei)

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="“The preference is to have an EU wide decision on this because of the way it looks right now. You have different countries taking different sides with mishmash approaches to this,” Triolo said. “That makes it complicated for carriers that operate across jurisdictions like Vodafone.” Vodafone (VOD), a global 5G partner of Huawei, recently paused installing Huawei into its core European networks.” data-reactid=”93″>“The preference is to have an EU wide decision on this because of the way it looks right now. You have different countries taking different sides with mishmash approaches to this,” Triolo said. “That makes it complicated for carriers that operate across jurisdictions like Vodafone.” Vodafone (VOD), a global 5G partner of Huawei, recently paused installing Huawei into its core European networks.

Some experts believe there is still time to turn away from Huawei. James Lewis, Director of the Technology and Public Policy Program at the Center for Strategic International Studies, recently argued that Huawei’s importance in the 5G buildout has been overstated.

“Right now Huawei is not indispensable,” Lewis, a former Foreign Service Officer at the Department of State, told Yahoo Finance’s On The Move (video above). “Some studies suggest they can be 20% cheaper because of the subsidies they get from the Chinese government… but you don’t have to buy Huawei if you want to buy 5G.”

‘Mr. President. I cannot agree with you more‘

Triolo noted that Washington’s shifting narrative has also muddled the picture.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="After repeatedly suggesting Huawei posed a national security risk, Trump backed off the harsh rhetoric last week when he tweeted that the U.S. should “win through competition, not by blocking out currently more advanced technologies.” His message came amid reports the U.S. was inching closer towards a broader trade deal with China after months of friction.” data-reactid=”98″>After repeatedly suggesting Huawei posed a national security risk, Trump backed off the harsh rhetoric last week when he tweeted that the U.S. should “win through competition, not by blocking out currently more advanced technologies.” His message came amid reports the U.S. was inching closer towards a broader trade deal with China after months of friction.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content=" ” data-reactid=”99″>

Huawei’s rotating Chairman Ken Hu responded to Trump on Twitter, saying: “Mr President, I cannot agree with you more. Our company is always ready to help build the real 5G network in the US, through competition.” (Huawei confirmed the authenticity of the tweet to Yahoo Finance.)

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content=" ” data-reactid=”102″>

The GSMA board meeting in Barcelona won’t be limited to European carriers and will include Chinese operators like China Mobile. That will be followed by ministerial meetings later in the week.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="A large U.S. delegation including FCC Chairman Ajit Pai will be looking to find some middle ground with government and business leaders to limit Huawei’s growth. But that could be a tough sell given that Huawei equipment currently accounts for 28% of global market share, according to Dell’Oro Group, with Ericsson (ERIC) and Nokia (NOK) trailing behind.” data-reactid=”105″>A large U.S. delegation including FCC Chairman Ajit Pai will be looking to find some middle ground with government and business leaders to limit Huawei’s growth. But that could be a tough sell given that Huawei equipment currently accounts for 28% of global market share, according to Dell’Oro Group, with Ericsson (ERIC) and Nokia (NOK) trailing behind.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Samsung is ramping up investments in 5G telecom network equipment business to fill the potential Huawei void, according to Reuters. But with the company accounting for just 3% of the global infrastructure on 4G, it may not have the capacity to meet demand.” data-reactid=”106″>Samsung is ramping up investments in 5G telecom network equipment business to fill the potential Huawei void, according to Reuters. But with the company accounting for just 3% of the global infrastructure on 4G, it may not have the capacity to meet demand.

“The U.S. government came up with the ban idea but they didn’t appreciate what the cost of that would be from a carrier point of view for equipment, and they didn’t really think out how you replace capacity in the network,” Triolo said. “Those are issues beyond the ability of the government.”

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="READ MORE: What is Huawei? China crown jewel now in US crosshairs” data-reactid=”108″>READ MORE: What is Huawei? China crown jewel now in US crosshairs

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Follow Yahoo Finance on Twitter, Facebook, Instagram, Flipboard, LinkedIn, YouTube, and reddit.” data-reactid=”109″>Follow Yahoo Finance on Twitter, Facebook, Instagram, Flipboard, LinkedIn, YouTube, and reddit.

Let’s block ads! (Why?)


Source link

Load More Related Articles
Load More By sudo
Load More In Mobiles

Check Also

Hacking Lawyers or Journalists Is Totally Fine, Says Notorious Cyberweapons Firm – Gizmodo

NSO Group founder and CEO Shalev HulioScreenshot: 60 Minutes (Twitter) The founder and CEO…