Huawei has 22 commercial 5G contracts; U.S. government warns allies about the company

1.  Huawei has signed 22 commercial contracts for 5G as operators prepare for the commercial launch of the new technology.

The company’s executive director and president of carrier business group Ryan Ding made the announcement during a keynote speech at the Global Mobile Broadband Forum (MBBF) in London.

null

 

During his speech, Ding noted that a number of operators are expediting 5G commercial deployment in order to secure the first mover advantage. Major countries representing a third of the global population are among the first adopters of the technology.

“So far, we have signed 22 commercial contracts for 5G, and we are working with over 50 carriers on 5G commercial tests,” Ding said.

“Through heavy investment and continuous innovation, we are committed to helping carriers deploy 5G networks easily, rapidly, and cost-effectively. And we are ready to work with all stakeholders to drive robust development of the 5G industry.”

Ding spoke of the technical capabilities of Huawei’s 4G/5G kit, such as an uplink and downlink decoupling that can achieve co-coverage of 4G and 5G using C-band spectrum, and the ability to offer end-to-end solutions meant it was an ideal partner for operators.Ding added that the first 5G smartphones will be available next year, and phone makers are expected to launch budget 5G phones priced at around $100 soon after the commercial roll-out of 5G networks.

He also mentioned the relatively small size and lightweight of Huawei’s wireless networking equipment. This will appeal to operators struggling to add more equipment to mobile sites, especially in urban areas

“Every new generation of network comes with new challenges, and this applies to 5G commercial deployment, too,” said Ding. “We take complexity and deliver simplicity. That means we will provide innovative solutions to address challenges in 5G commercialization. Our close collaboration with carriers will help them find the easy way to 5G.

“Huawei has earned customer recognition for our leading 5G end-to-end capabilities and innovative products and solutions. So far, we have signed 22 commercial contracts for 5G, and we are working with over 50 carriers on 5G commercial tests. Through heavy investment and continuous innovation, we are committed to helping carriers deploy 5G networks easily, rapidly, and cost-effectively. And we are ready to work with all stakeholders to drive robust development of the 5G industry.”

The 5G contracts could also be viewed as a vote of confidence in Huawei. It has effectively been frozen out of the U.S. and Australian markets due to national security fears, specifically that the use of its equipment risks the possibility of Chinese government backdoors.

–>The effort to ban Huawei is further described in 2. below.

………………………………………………………………………………………………………………….

2. U.S.  Asks Allies to Drop Huawei – worried about potential Chinese meddling in 5G networks, but foreign carriers may balk

WSJ article front page lead story on 23 November 2018

The U.S. government has initiated an extraordinary outreach campaign to foreign allies, trying to persuade wireless and internet service providers in these countries to avoid telecommunications equipment from China’s Huawei Technologies Co., according to people familiar with the situation.

American officials have briefed their government counterparts and telecom executives in friendly countries where Huawei equipment is already in wide use, including Germany, Italy and Japan, about what they see as cybersecurity risks, these people said. The U.S. is also considering increasing financial aid for telecommunications development in countries that shun Chinese-made equipment, some of these people say.

One U.S. concern centers on the use of Chinese telecom equipment in countries that host American military bases, according to people familiar with the matter. The Defense Department has its own satellites and telecom network for especially sensitive communications, but most traffic at many military installations travels through commercial networks.

The initiative also coincides with rising tensions between Washington and Beijing on other fronts this year as the Trump administration moves to counter what some U.S. officials say they see as years of unbridled Chinese aggression. Washington has placed tariffs on some imports from China, drawing retaliation from Beijing. The U.S. has also tightened up foreign-investment rules targeting Chinese deal making.

Officials familiar with the current effort say concerns about telecom-network vulnerabilities predate the Trump era and reflect longstanding national-security worries.

The overseas push comes as wireless and internet providers around the world prepare to buy new hardware for 5G, the coming generation of mobile technology. 5G promises superfast connections that enable self-driving cars and the “Internet of Things,” in which factories and such everyday objects as heart monitors and sneakers are internet-connected.

U.S. officials say they worry about the prospect of Chinese telecom-equipment makers spying on or disabling connections to an exponentially growing universe of things, including components of manufacturing plants.

“We engage with countries around the world about our concerns regarding cyberthreats in telecommunications infrastructure,” a U.S. official said. “As they’re looking to move to 5G, we remind them of those concerns. There are additional complexities to 5G networks that make them more vulnerable to cyberattacks.”

The briefings are aimed at dissuading governments and telecom executives from using Huawei network components in both government and commercially operated networks. A core focus of the briefings is Beijing’s ability to force Chinese corporations to comply with government requests from government authorities, a U.S. official said.

Some major carriers say Huawei’s broad offering of components, lower costs and high quality make it a difficult provider to do without.
Some major carriers say Huawei’s broad offering of components, lower costs and high quality make it a difficult provider to do without PHOTO:MICHAEL HANSON FOR THE WALL STREET JOURNAL
………………………………………………………………………………………………………………………………………………………………

The talking points also emphasize how wireless and internet networks in a few years could be more susceptible to cyberattacks or espionage, people familiar with the briefings said. Today’s cellular-tower equipment, for instance, is largely isolated from the “core” systems that transfer much of a network’s voice and data traffic. But in the 5G networks telecom carriers are preparing to install, cellular-tower hardware will take over some tasks from the core—and that hardware could potentially be used to disrupt the core via cyberattacks. For that reason, U.S. officials worry that Huawei or ZTE cellular-tower equipment could compromise swaths of a telecom network.

Huawei is the world’s No. 2 smartphone maker behind Samsung Electronics Co. It is the global leader for telecom equipment, such as the hardware that goes into cellular towers, internet networks and other infrastructure that enables modern communication.

Huawei has long said it is an employee-owned company and isn’t beholden to any government, and has never used its equipment to spy on or sabotage other countries. It said its equipment is as safe as that of Western competitors, such as Finland’s Nokia Corp. and Sweden’s Ericsson , because all manufacturers share common supply lines.

In a statement Friday, Huawei said it has its customers’ trust and was “surprised by the behaviors of the U.S. government” detailed in this article. “If a government’s behavior extends beyond its jurisdiction, such activity should not be encouraged,” it said.

The Trump administration and Congress this year initiated a multipronged push to tighten up restrictions on Huawei and other Chinese telecom-equipment manufacturers, including ZTE Corp. The Federal Communications Commission, for instance, moved to restrict federal subsidies to some carriers if they buy Chinese gear.

Even without U.S. business, Huawei dominates the world’s telecom-equipment market. Last year, the company held a 22% share globally, according to research firm IHS Markit Ltd. Nokia had 13%, Ericsson had 11% and ZTE was in fourth at 10%.  Dell’Oro Group says Huawei has a 38% revenue market share in Asia Pacific, a 30% share in Europe, but only a 2% share in North America.

Some other members of the “Five Eyes,” a five-member intelligence pact among English-speaking countries that includes the U.S., have also publicly challenged Huawei. The Australian government in August banned Huawei and ZTE from its 5G networks. In October, U.K. authorities said they were reviewing the makeup of its telecom-equipment market, a move industry leaders said was clearly aimed at Huawei.

Still, there is a big hitch to U.S. efforts to curb Huawei overseas: The company is already popular among carriers in allied countries, including some of America’s closest military partners. Some major carriers in these places say Huawei offers the most products and often customizes them to fit a carrier’s needs. They also cite lower costs and high quality.

In an effort to narrow that advantage in some countries, Washington is considering ways to increase funding from various U.S. government sources to subsidize the purchase and use of non-Chinese equipment, according to people familiar with the matter. Countries buying Chinese telecommunications equipment would be ineligible for such subsidies.

In the past year, U.S. officials, including representatives from the National Security Council and Commerce, Defense and State departments, worked together to produce briefing notes about why they believe Chinese telecom equipment poses national-security risks, people familiar with the matter said. One U.S. government official said they focused on Huawei but also included ZTE, a Chinese rival with a much smaller business outside China.  A ZTE representative declined to comment on the U.S. effort.

Washington has circulated the notes to national-security officials as well as to embassies, with the idea that they can deliver the message to foreign officials and telecom executives, some of the people said.

A spokesman for the Commerce Department said it would “remain vigilant against any threat to U.S. national security.” Spokesmen for the National Security Council and the State Department declined to comment. The Defense Department didn’t return a request for comment.

U.S. officials have briefed counterparts in Germany, which has signaled a new wariness toward Huawei, according to people familiar with the matter. Huawei this month opened a lab in Germany similar to one it already operates in Britain, where Huawei products are inspected for security flaws. The U.K. government said in July it found shortcomings in the process.

Germany’s Federal Office for Information Security declined to comment.

American officials have also briefed Japanese officials about Huawei, people familiar with the matter said. A Japanese government official said “we share various information with the U.S.,” but declined to comment on specifics. Japanese officials in August said they were studying restrictions on Huawei.

………………………………………………………………………………………………………………………………………………………………….
Related Content:

 

 

 

9 thoughts on “Huawei has 22 commercial 5G contracts; U.S. government warns allies about the company

  1. “It will be a difficult decision for telecom operators in Europe who already have been using Huawei,” said Achal Sultania of Credit Suisse . “They will have to change architecture around to shift to either Nokia or Ericsson. For them, it is going to be complicated and time-consuming.”

    U.S. officials say they worry about the prospect of Chinese telecom-equipment makers spying on or disabling connections at a time when more items—from factories to everyday objects—are connected to the internet.

    “It is unthinkable that vast installed bases of Huawei equipment, plus relationships with customers would get ripped out; but Huawei market share could get capped in some markets, leaving Nokia and Ericsson to benefit,” said Richard Kramer, an analyst at research house Arete.

    Huawei has long said it is an employee-owned company and isn’t beholden to any government, and has never used its equipment to spy on or sabotage other countries.

    In a statement Friday, it said it has its customers’ trust and was “surprised by the behaviors of the U.S. government” detailed in the Journal’s report.

    “If a government’s behavior extends beyond its jurisdiction, such activity should not be encouraged,” it said.
    ZTE declined to comment.

  2. Huawei, ZTE emerge as major winners in India 4G market

    Vodafone Idea has stepped up gear purchases from Huawei and ZTE as both Chinese network vendors offered more attractive prices and flexibility in payment terms over two to three year-spans unlike Ericsson and Nokia, which had quoted higher rates and sought payments at the point of deployment itself.

    https://telecom.economictimes.indiatimes.com/news/vodafone-idea-inks-4g-network-pacts-worth-1-4-bn-huawei-zte-emerge-as-major-gainers/66753251

  3. Indonesia’s Telkomsel has signed a memorandum of understanding with Huawei focused on digital transformation of the operator’s business. The agreement will see the companies collaborate on the development of flexible service offerings for customers, user experience assurance and the development of enterprise mobile broadband services.

    Telkomsel’s digital transformation strategies are aimed at transforming the operator from a traditional telco to a provider of digital and data services.

    Earlier this year, the operator worked with Huawei to migrate package quota management into Huawei’s Unified Policy and Charging Controller (UPCC), part of the vendor’s SmartPCC suite, as part of efforts to reduce operational complexity and time to market of new services.

    Now the companies are expanding their collaboration in the mobile broadband field, and plan to jointly develop new core network solutions to accelerate the rollout of Telkomsel’s new service offerings.

    https://www.telecomasia.net/content/telkomsel-signs-digital-transformation-mou-huawei

  4. New Zealand Bars Huawei From Its 5G Network Over Security Fears-The U.S. has been lobbying allies to oust the company, as neighboring Australia did in August.

    Chinese telecommunications giant Huawei Technologies Co. has been blocked from supplying a 5G mobile network in New Zealand, a fresh setback as a U.S. campaign to shun its equipment intensifies.

    Spark New Zealand said Wednesday that the Government Communications Security Bureau had told it that its plan to use Huawei equipment in the network—which Spark is due to complete by July 2020—would “raise significant national-security risks.”

    https://www.wsj.com/articles/new-zealand-bars-huawei-from-its-5g-network-over-security-fears-1543408355

  5. UK and Germany grow wary of Huawei as US turns up pressure-Delegation from Washington warns against using Chinese supplier for 5G networks. US, Australia and New Zealand have already blocked the use of Huawei 5G equipment on national security grounds.

    The UK and Germany are growing wary of allowing Huawei, the Chinese telecoms company, to install 5G equipment in their countries after a US delegation visited Europe to urge heightened vigilance against national security threats.

    UK security officials on Thursday issued a new public warning to Huawei, saying the Chinese company must fix problems in the equipment it provides to British networks or risk a further deterioration in what is an increasingly strained relationship.

    The clear message delivered by the US delegation this month and in online communications is that Germany and the UK as key American allies must safeguard the security of their telecoms networks and supply chains, said people familiar with the situation.

    The warnings come as Germany and the UK are preparing for auctions next year for 5G, a superfast service that will enable a new generation of digital products and services. Huawei is the world’s biggest telecoms equipment supplier and has been seen as a frontrunner to build the first networks in both countries, where it has conducted extensive 5G tests.

    The UK’s National Cyber Security Centre (NCSC), part of the digital intelligence agency GCHQ, said Huawei must fix problems, highlighted in July, that pose “new risks in UK telecommunications networks”.

    The issues came to a head in a tense meeting between the board set up to scrutinize Huawei equipment and the Chinese company earlier this month, said government officials and telecoms executives.

    “As you might imagine there are some strains in the relationship as we deal with the issues set out in the latest oversight board report,” the spokesperson said. “But we remain committed to working with the company to put it right.”

    Banning Huawei outright from providing 5G equipment to UK providers or removing them from existing telecoms networks remains unlikely, officials said. But the message to the Chinese company is clear.

    “They are slowing down Huawei to allow the rest of the market to catch up,” said one former intelligence official. “If I was part of oversight board or government, I would be putting the boot in right now.”

    UK security officials rejected the suggestion they are hardening their stance in response to growing pressure from the US, insisting the concerns are not based on Huawei’s Chinese origins as a company but on the way the company manufactures software and equipment which makes critical telecoms networks vulnerable to cyber attack.

    A spokesperson for Huawei said: “We are grateful for this feedback and committed to addressing these issues. Cyber security remains Huawei’s top priority, and we will continue to actively improve our engineering processes and risk management systems.”

    New Zealand this week became the latest country to take action against Huawei, blocking one of its biggest telecoms operators from using Huawei’s 5G equipment. The US and Australia have already blocked the company on national security grounds.

    In Germany, officials said the mood in government was growing increasingly wary of Huawei’s potential involvement in building the country’s 5G network. While it is too early to say if Berlin will ban the Chinese company from participating, concerns in some parts of the government, including the foreign and interior ministries, is deepening, officials said.

    “The US influence on this has really intensified recently,” said one German official, who requested anonymity.

    Cui Haifeng, vice-president of Huawei in west Europe, told the Financial Times in Hamburg that the company was doing everything possible to allay concerns over security. Asked if Germany was set to issue a ban, he said: “So far, I never heard about this kind of thing.”

    “[For] every technology for us at Huawei we always try to put the security and safety as top priorities so all the design, products and services will be safe,” Mr Cui said.

    Raffaello Pantucci, director of international securities studies at UK think-tank RUSI
    “The NCSC has concerns around a range of technical issues and has set out improvements the company must make,” a government spokesperson said. “In the UK, the conversation with regard to China has definitely shifted with the hawks becoming kind of dominant,” Mr Pantucci added.

    The main US concern over Huawei equipment is that the company’s ties to the Chinese government could enable snooping or interference. Huawei has strongly denied such charges.

    More generally, the US is worried about the potential application of China’s National Intelligence Law, approved in 2017, which states that Chinese “organisations and citizens shall . . . support, co-operate with and collaborate in national intelligence work”. The risk, said US officials, is that this could mean that Chinese companies overseas are called upon to engage in espionage.

    https://www.ft.com/content/6719b6b2-f33d-11e8-9623-d7f9881e729f (on line sub required)

  6. What is Huawei, and why the arrest of its CFO matters, By Julia Horowitz, CNN Business

    The arrest of a top Huawei executive has roiled the business world and threatens to derail the tenuous trade truce between the United States and China. Experts are warning that what happens with Weng’s case could have huge implications for the broader US-China relationship.

    https://www.cnn.com/2018/12/06/tech/what-is-huawei/index.html

Leave a Reply

Your email address will not be published.

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>

*

 
 

Recent Posts