HUAWEI CLOUD launches partner programs in LatAm and Caribbean

HUAWEI CLOUD [1.] announced today that it will launch partner programs in Latin America and the Caribbean, such as the Spark Program, which provides a fund of $10 million for startup innovation, and the Huawei Mobile Services (HMS) Ecosystem Program, which provides a fund of $10 million to enable app developers and partners to improve cloud experience.

Note 1. HUAWEI CLOUD provides a powerful computing platform and easy-to-use development platform to support Huawei’s full-stack, all-scenario AI strategy.

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From August 25 to September 3, HUAWEI CLOUD is celebrating its second anniversary in Latin America with a series of activities. HUAWEI CLOUD and its customers and partners will share experiences in digital transformation and intelligent upgrade.

The event includes a series of releases, covering distributed cloud, cloud native, big data, AI, and video service. The following cloud services are launched for the first time in Latin America: Intelligent EdgeCloud (IEC), Intelligent EdgeFabric (IEF), KYON (Keep Your Own Network), FunctionGraph 2.0, Multi-Cloud Container Platform (MCP), Application Service Mesh (ASM), Container Guard Service (CGS), GaussDB database, ModelArts Pro (AI development platform for enterprises), and Cloud-native Video Service. These powerful offerings help Latin American customers simplify connections, deployment, data analysis, AI adoption, and service rollout, facilitating their digital transformation.

Four Initiatives to Accelerate Digital Transformation and Intelligent Upgrade:

“Cloud is the core of the ICT industry and a key driving force for industry digitalization,” said Mr. Zhang Ping‘an, Senior Vice President of Huawei, CEO of Huawei Cloud BU, and President of Huawei Consumer Cloud Service. “HUAWEI CLOUD values the strategy of building a global presence within local reach. Latin America is one of the most important emerging markets for cloud computing. HUAWEI CLOUD has been investing heavily in this market and has achieved rapid growth,” Mr. Zhang Ping‘an continued. “Going forward, we will strengthen our support for the digital transformation and intelligent upgrade of our customers in Latin America through four initiatives: continuous tech innovation, joint outreach by HUAWEI CLOUD & Huawei Mobile Services, Global + Local services, and high-quality business ecosystems. We invite more partners to join. Together, we will build a robust digital ecosystem around the world and lay the cloud foundation for an intelligent world.”

Continuous tech innovation: Drawing on Huawei’s rock-solid foundation built by 80,000 R&D engineers and an annual investment of 15 billion US dollars into R&D, HUAWEI CLOUD continues to innovate in cloud native, AI, and big data, delivering global cloud services with compelling elasticity, performance, and consistency.

Joint outreach by HUAWEI CLOUD & Huawei Mobile Services (HMS): This cloud-cloud synergy initiative enables deep collaboration between HUAWEI CLOUD and Huawei Consumer Cloud for media, audio-visual, finance, industrial interconnection, and medical education. The synergy aims to deliver consistent technologies and experience for developers and partners via unified accounts, development platforms, and application distribution and operation.

Global + Local services: HUAWEI CLOUD has built 45 availability zones (AZs) in 23 regions around the world. Over the past year, HUAWEI CLOUD has continuously invested in Latin America, bringing the second region online in Mexico and adding two new AZs in Brazil and Chile. As of today, HUAWEI CLOUD operates three core regions in ChileBrazil, and Mexico, and two country-level regions in Argentina and Peru, with eight AZs in total. HUAWEI CLOUD has the largest number of nodes in Latin America and the Caribbean. The unrelenting resource investment helps provide customers with stable, efficient, and low-latency cloud service experience.

High-quality business ecosystem: HUAWEI CLOUD has more than 20,000 partners, including consulting, SaaS, and software partners. In the process of global deployment, HUAWEI CLOUD has focused on building a multi-dimensional global ecosystem and complementing the advantages of different regions to create maximum value for customers. In the future, HUAWEI CLOUD will engage with more partners in Latin America and bring the experience in other regions of the world to create shared success for all.

Continuous Investment in Latin America and Increased Support for Partners

“We position our company not only as a provider of leading cloud infrastructure and services, but also a long-term business partner in Latin America, as well as a responsible corporate citizen,” said Fernando Liu, President of Latin America Cloud Business Dept, Huawei. “As a cloud service provider with the largest number of nodes and the fastest growth in Latin America, HUAWEI CLOUD will continue to invest more in Latin America with more local nodes, new solutions, and partner support. We are dedicated to bringing the latest technology to Latin America.”

Fernando Liu also stressed HUAWEI CLOUD’s belief in a co-created ecosystem of shared success, as HUAWEI CLOUD works with partners to take digital transformation and intelligent upgrade to new heights in Latin America. At the two-year anniversary, HUAWEI CLOUD is launching a series of support initiatives for HMS partners, SaaS partners, and start-ups.

  • Spark Program: A fund of USD10 million to encourage and support innovation by start-ups in Latin America.
  • HMS Ecosystem Program: A fund of USD10 million to enable developers and partners to launch applications on Huawei AppGallery. The program also helps them better experience device-cloud synergy based on the HUAWEI CLOUD platform.
  • Service Partner Program: Provides additional incentives for consulting partners who pass the Service Capability Certification (SCC).
  • SaaS Partner Program and Marketplace Program: Focused technical and commercial policies to support technical partners and help them develop solutions based on HUAWEI CLOUD. The Marketplace Program supports the partners throughout the sales cycle, helping them achieve greater business success.

Since 2019, HUAWEI CLOUD has worked with more than 1000 consulting partners and 200 technical partners in Latin America, covering 14 Latin American countries, propelling Latin America towards digital transformation and intelligent upgrade in logistics, manufacturing, transportation, retail, education, and telecommunications.

 

References:

https://en.prnasia.com/releases/apac/huawei-cloud-steps-up-investment-in-latin-america-with-new-releases-and-partner-programs-330601.shtml

https://www.huaweicloud.com/en-us/about/about_us.html

https://www.huaweicloud.com/intl/en-us/?ned

Huawei investment subsidiary buys 40 companies in 3 years to reconstruct semiconductor supply chain

According to financial magazine Caijing (Chinese), Huawei has been building an independent and controllable silicon industrial capability in the last two years as it attempts to rebuild its supply chain.  Investments cover virtually every part of the semiconductor industry, including IC design, electronic design automation (EDA) software, packaging and testing, and materials.

On June 23rd, Tianyancha, an enterprise information query platform, revealed that Shenzhen Hubble Investment Partnership (Limited Partnership), a subsidiary of Huawei Technologies Co., Ltd [1.], became a shareholder of Qiangyi Semiconductor (Suzhou) Co., Ltd. The registered capital of the latter increased from 65.943 million yuan to 73.165 million yuan. This is the first company in mainland China that has the ability to independently design vertical probe cards and has achieved mass production of MEMS probe cards.

The probe card is the core component of the chip test link, accounting for 70% of the total cost of the entire test fixture. As a test interface, the probe card will test the bare chip and screen out defective products. For a long time, the semiconductor test probe market has been monopolized by foreign manufacturers.

Note 1. Shenzhen Hubble Investment Partnership (Limited Partnership), which was established in April this year and is an investment institution controlled by Huawei Investment Holdings Co., Ltd., which is the same as Hubble Technology Investment Co., Ltd., which was established in April 2019.

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Hubble Technology Investment Co., Ltd., which has been established for three years, has made faster and more detailed investments.  In May, it invested in Shenzhen Yunyinggu Technology. On June 23 and 24, it successively invested in Qiangyi Semiconductor and Chongqing Xinjing Special Glass. There are 37 companies in its investment portfolio, of which 34 are related to semiconductors, involving chip design, EDA, testing, packaging, materials and equipment All links.

Before the establishment of Hubble Investment in 2019, Huawei had always followed the long-term principle of not investing in any company. Hubble’s mission is closely linked to the production of Huawei chips via wholly-owned subsidiary HiSilicon.  Huawei CEO Ren Zhengfei had insisted the company would not invest in or partner with suppliers in order to ensure it was free to choose the best technologies.

In 2019, after Huawei was sanctioned by the U.S. government, the chips designed by HiSilicon could not find a foundry company (e.g. TMSC, Samsung, etc) that would make those chips for them.  Those U.S. sanctions have changed Ren’s stance on investments/acquisitions.  So Hubble Investment’s mission was directed at Huawei’s survival needs.

According to market research firm Strategy Analytics report, in the first quarter of 2021, the global smartphone processor market grew by 21% year-on-year, and Huawei HiSilicon’s smartphone processor shipments dropped by 88% compared to the same period last year. The sharp decline in data also indicates the urgency of self-help to make HiSilicon designed chips.

As tech blogger Kevin Xu pointed out: “Habo is a way to find and invest in the best companies in China who can be suppliers and partners, and groom them to be world class quality. That’s why Huawei gives them its business — there’s no better training than serving a real (and big) customer.”

Huawei’s executive director and CEO of consumer business, Yu Chengdong, once admitted that it was a mistake to only choose the field of chip research and development and ignore the asset-heavy chip manufacturing field.

The investment focus has shifted several times as it has built out its prospective supply chain partners, Caijing says. In late 2019 and the first half of 2020, its targets were materials and opto-electronic chip firms. In the latter part of 2020 and early 2021, it shifted to EDA software. In recent months it has targeted advanced equipment. In early June it invested 82 million yuan (US$12.7 million) in Beijing RSLaser Opto-Electronics Technology Co, specialist in light source systems for lithography machines.

Caijing confirmed with many people familiar with the matter that Huawei will build its first wafer fab in Wuhan. It will need a series of related materials, equipment, software, etc., which cannot be researched by Huawei alone. This means that Hubble’s investment in the semiconductor industry chain in the past three years will play an important role, and this will also be a crucial step for Huawei to achieve self-help in the supply chain.

Most of the companies invested by Hubble are in the early stages, and their scale is still far from the leading companies in the industry. Huawei tends to grow together with a company. Therefore, even some technologies that have not yet been commercialized in large quantities will receive investment from Huawei. This is for the controllable layout of Huawei’s industrial chain.

Although the information released to the outside world is extremely limited, many sources indicate that Hubble is closely connected with Huawei’s overall strategic plan. Bai Yi, the chairman and general manager of Hubble Investment, is also the president of Huawei’s Global Financial Risk Control Center and formerly vice president of Huawei’s strategy department.

A Huawei employee revealed to a reporter from Caijing that Hubble’s personnel are simple, “only a few dozen people”, but some of them also belong to Huawei’s strategic department in terms of administrative planning. For a long time before this, the decision-making power of Hubble’s foreign investment was not in the hands of the investment company itself, but was determined by the business department related to the invested company.

A semiconductor investor told a reporter from Caijing that sometimes they will look at projects with Hubble Investment. In many projects, Huawei’s procurement VP will directly participate in investment negotiations. At the same time, some of the invested companies are also Huawei’s upstream suppliers. . Some companies have business cooperation with Huawei, but Hubble has only deepened business cooperation.

The most obvious manifestation of the in-depth business cooperation is the order. In addition to investment, Huawei will also support the invested companies in order.

Take analog chip manufacturer Si Ruipu as an example. In the prospectus disclosed, customer A is the number one customer of Si Ruipu, which accounts for 57.13% of the operating income of the company. According to some related information, it is speculated that this customer A is Huawei. According to the prospectus, Si Ruipu established a cooperative relationship with Huawei in 2016 and obtained the certification of Huawei as a qualified supplier in 2017. In 2019, Hubble Investment, a subsidiary of Huawei, through private placement, became a shareholder of Seripul, and furthered the cooperation, and Huawei became the number one customer of Siripul.

Another example is Can Qin Technology. In 2019, Can Qin Technology became Huawei’s strategic core supplier and the largest supplier of Huawei’s 5G base station filters. Its orders from Huawei accounted for 91.34% of its operating income. In 2020, Hubble Investment will invest in Canqin Technology through equity transfer, with a shareholding ratio of 4.58%.

For small and medium-sized start-ups, the most worrying thing before is that no manufacturers are willing to use the product. Obtaining Huawei’s orders means stable sales revenue and strong ecological support, and it also gives these companies the opportunity for iterative trial and error. Many semiconductor companies in the United States have gradually developed by relying on powerful semiconductor manufacturers.

As previously noted, Huawei was not receptive to domestic suppliers in the early days. In addition to its strong style, Huawei did not give many domestic companies opportunities in the early years of the company. Their suppliers will still be the world’s first-class manufacturers. Today, the situation is quite different, but it gives tech companies in mainland China a rare opportunity.

In addition to orders, if some companies say that products or technologies may not be developed until next year, Huawei will also say that as long as the company can produce products in the future, Huawei promises to use it. This is a strong driving force for China’s independent semiconductor industry chain.

Once Huawei’s wafer fab is completed, its IDM model will go through, and a closed loop of the ecological industry chain will be realized. Now, Huawei is hiring talents in chip manufacturing and equipment. At the same time, Huawei is also paying attention to some domestic material companies, such as photoresist, silicon wafer, gas and other companies, which will serve for the construction of fabs in 2 to 3 years.

Becoming a supplier of Huawei is not an easy task. Huawei has very high requirements on suppliers. Accepting Huawei’s orders is a very energy-consuming task. At the same time, invested companies may also face the choice of giving up other customers. If there is a problem with Huawei, a major customer, the company’s operations will also be strained.

Today, Huawei is planning to build its own wafer fab and adopt the IDM model. If completed, Huawei’s semiconductor ecosystem will gradually form a closed loop. Huawei also hopes that the companies it invests in will be used for its production lines in the next 3 to 5 years.

References:

https://mp.weixin.qq.com/s/16JJ4h5JXckwoowvLe4gYw

https://www.lightreading.com/asia/huawei-bets-on-chip-startups-to-rebuild-supply-chain/d/d-id/770669?

 

Reports: Huawei wins 5G contracts with Vodafone-Italy and Malaysia

Reuters reports that Vodafone’s Italian division has secured conditional approval from Rome to use equipment made by China’s Huawei in its 5G radio access network, two sources close to the matter said.

Italy can block or impose tough conditions on deals involving non EU vendors under “golden powers,” which have been used three times since 2012 to block foreign interest in industries deemed to be of strategic importance.

The government of national unity led by Prime Minister Mario Draghi authorized the deal between Vodafone and Huawei on May 20, one of the two sources told Reuters, asking not to be named due to the sensitivity of the matter.

As in similar deals, the government imposed a set of prescriptions including restrictions on remote intervention by Huawei to fix technical glitches and an extremely high security threshold, the source added. Vodafone and Huawei declined to comment.

The United States has lobbied Italy and other European allies to avoid using Huawei equipment in their next generation telecoms networks and to closely scrutinize rival ZTE, saying the companies could pose a security risk.  Huawei and ZTE strongly deny the allegations.

In the last 12 months, Italy has adopted a tougher stance on Huawei, while not banning it entirely from 5G infrastructure.

Under previous Prime Minister Giuseppe Conte, Rome prevented telecoms group Fastweb in October from signing a deal with Huawei to supply equipment for its 5G core network, where highly sensitive data is processed.

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In Malaysia a former deputy minister of international trade and industry, Kian Ming Ong, told Sydney Morning Herald it hadn’t seen any proof of vulnerabilities in Huawei’s network equipment.  He said the government was likely to select Huawei as prime supplier to its national wholesale 5G network.

Huawei would be selected by a specially formed 5G government agency as the majority provider for Malaysia’s so-called single wholesale network. Fellow Chinese company ZTE and Scandinavian heavyweights Ericsson and Nokia are among seven other potential vendors who have been asked to bid for the deal.

In a Nikeii Asia op-ed Huawei’s Vincent Peng wrote:

Huawei is caught in a rivalry between two great powers. Although U.S.-China relations may not thaw any time soon, it seems clear that the current administration is taking a more multilateral approach to the world than its predecessor did.

This gives us hope that there may eventually be a change in how the U.S. government chooses to treat Huawei and other global technology companies headquartered outside of the United States.

To register for Huawei’s Finance Summit 2021:

https://e.huawei.com/topic/2021-event-fsi-summit/en-ap/index.html

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References:

https://www.reuters.com/technology/italy-gives-vodafone-5g-deal-with-huawei-conditional-approval-sources-2021-05-31/

https://www.smh.com.au/world/asia/no-concrete-proof-of-espionage-malaysia-on-verge-of-huawei-5g-deal-20210531-p57wn4.html

https://asia.nikkei.com/Opinion/Huawei-to-Joe-Biden-Let-s-talk

https://e.huawei.com/topic/2021-event-fsi-summit/en-ap/index.html

 

Huawei or Samsung: Leader in 5G declared Standard Essential Patents (SEPs)?

A new report, jointly released by IP consulting and analysis companies, Amplified and GreyB, disclosed that the top 6 companies (Huawei, Samsung, LG, Nokia, Ericsson, Qualcomm) account for 64.9% in 18,887 declared patent families. In granted 10,763 declared patent families, 2,893 families have been identified as core SEPs where top 6 companies account for 72.5%.

Huawei was first with 530 patent families and a ratio 18.3%. Nokia and Samsung were ranked No. 2 and No. 3 with 14.6% and 12.9%. respectively.

The report is an update of the previous report “Exploration of 5G Standards and Preliminary Findings on Essentiality” released on May 26, 2020.

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Separately, Samsung Electronics Co., Ltd. announced on March 10th that it has ranked first in 5G Standard Essential Patent (SEP)¹ shares according to a patent essentiality study conducted by IPlytics2, a Berlin-based market intelligence firm comprised of economists, scientists and engineers. The findings were published in IPlytics’ recent report: “Who is leading the 5G patent race? A patent landscape analysis on declared SEPs and standards contributions.”

Samsung also ranked second in two other categories: share of 5G granted3 and active patent4 families5, and share of 5G granted and active patent families with at least one of them granted by the EPO (European Patent Office) or USPTO (United States Patent and Trademark Office).

Last year, Samsung also led in 5G patents as a result of its research and development of 5G standards and technologies.

the top 10 companies own more than 80% of all granted 5G patent families, while the top 20 own more than 93% of all 5G granted patent families. These numbers confirm that there are only a few major large 5G patent owners, but looking at overall 5G declarations, the IPlytics Platform database identified more than 100 independent companies, which have declared ownership of at least one 5G patent.

The 5G patent family statistics presented in Table 1 are not based on verified SEP families. Neither ETSI nor the declaring companies have published independent assessments of the essentiality or validity of the declared 5G patents. Thus, the 5G patent families presented are only potentially essential. Many well-known SEP studies estimate that between 20% and 30% of all declared patents are essential. However, the essentiality rate differs across patent portfolios. To better understand the essentiality rate across portfolios, IPlytics created a data set of 1,000 5G-declared patent families (EPO/USPTO granted), which independent experts have mapped to 5G specifications. Here, the experts mapped the patents for six hours in a first check and then EPO/USPTO patent attorneys double-checked the mapping for a further three hours.

Table 1. Top 5G patent declaring companies (with >1% share)

Current Assignee 5G families 5G granted and active families 5G EPO/USPTO granted and active families 5G EPO/USPTO granted and active families not declared to other generations
Huawei (CN) 15.39% 15.38% 13.96% 17.57%
Qualcomm (US) 11.24% 12.91% 14.93% 16.36%
ZTE (CN) 9.81% 5.64% 3.44% 2.54%
Samsung Electronics (KR) 9.67% 13.28% 15.10% 14.72%
Nokia (FN) 9.01% 13.23% 15.29% 11.85%
LG Electronics (KR) 7.01% 8.7% 10.3% 11.48%
Ericsson (SE) 4.35% 4.59% 5.25% 3.79%
Sharp (JP) 3.65% 4.62% 4.66% 5.50%
Oppo (CN) 3.47% 0.95% 0.64% 1%
CATT Datang Mobile (CN) 3.44% 0.85% 0.46% 0.68%
Apple (US) 3.21% 1.46% 1.66% 2.15%
NTT Docomo (JP) 3.18% 1.98% 2.25% 1.9%

Source: IPlytics

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Superscript Notes:

[1] “A patent that protects technology essential to a standard”, European Commission report – “Setting out the EU approach to Standard Essential Patents”, p1, November 2017.
[2] “IPlytics derived the “essential rate” by creating a random data set of 1,000 5G-declared patent families (EPO/USPTO granted) and mapping it to 5G specifications.” . Available : https://www.iam-media.com/who-leading-the-5g-patent-race-patent-landscape-analysis-declared-seps-and-standards-contributions
[3] “a patent that is granted by at least one of patent offices”, IPlytics report – “who is leading the 5G patent race”, p5, November 2019.
[4] “in active status, which means it has not lapsed, been revoked or expired”, IPlytics report – “who is leading the 5G patent race”, p3, November 2019.
[5] “a collection of patent applications covering the same or similar technical content”, . Available: https://www.epo.org/searching-for-patents/helpful-resources/first-time-here/patent-families.html

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References:

https://www.amplified.ai/news/5g-updated

https://static1.squarespace.com/static/59fa01a118b27d1bfef7f050/t/603caec7fe1d40450f23c831/1614589756133/5G+Report+%28Updated+findings%29.pdf

https://www.greyb.com/5g-patents/

https://news.samsung.com/us/samsung-extends-leadership-5g-patents/

https://www.iam-media.com/who-leading-the-5g-patent-race-patent-landscape-analysis-declared-seps-and-standards-contributions

https://techblog.comsoc.org/2020/06/24/greyb-study-huawei-undisputed-leader-in-5g-standard-essential-patents-seps/

https://techblog.comsoc.org/2020/07/10/5g-specifications-3gpp-5g-radio-standard-imt-2020-and-standard-essential-patents/

https://techblog.comsoc.org/2020/10/03/is-a-new-5g-patent-war-in-the-works-expert-opinion-review-of-5g-patent-studies/

 

 

Huawei and China Mobile test 5G indoor Massive MIMO

Huawei and China Mobile Guangdong have completed a test of 5G indoor distributed Massive MIMO. This pilot was completed in the 2.6 GHz inter-frequency band (80 MHz + 80 MHz) in Huawei’s Southern Factory in Dongguan, an important industrial city in China’s Pearl River Delta. According to Huawei, the cell uplink throughput peaked at 1.2 Gbps.

The pilot was conducted using LampSite, Huawei’s 5G digital indoor network product, based on the 2.6 GHz inter-frequency networking (80 MHz + 80 MHz). Distributed Massive MIMO was enabled in multiple 5G indoor cells to provide the large capacity needed to support 5GtoB (5G to Business) services and meet their high requirements for uplink experience. The peak uplink experience was quadrupled compared with traditional 4T4R cells.

Indoor distributed Massive MIMO introduces Massive MIMO for macro base stations to indoor networks. It is an innovative approach by Huawei to continuously increase the capacity of indoor 5G networks. The technology supports up to 64T64R channels and pools beamforming, MU-MIMO, and other technologies to ensure high capacity in the uplink and consistent user-perceived data speeds. Such a high level of performance makes it perfectly for smart production in which service terminals are frequently relocated for flexible production. Adding another competitive edge to empower 5G to transform industries.

The pilot is of great significance to indoor 5G, providing carriers with a new option to ensure premium uplink experience for emerging industrial services, such as video transfer and AGV operations, and expand 5G to factories, ports, power grids, airports, transportation, security, and many other industrial markets.

Huawei will continue to work with China Mobile Guangdong in innovating 5G to improve 5G performance, build competitive 5G networks, and lead the development of 5G to Business customers.

Previously, the two companies deployed indoor 5G at a Shanghai train station.
References:

Huawei: 5G Technology Illuminates the Future + Huawei analysis

On the eve of  MWC Shanghai 2021Ryan Ding, CEO and President of Huawei’s Carrier Business Group, talked about “5G technology lights up the future.”

“2020 has been a difficult year. During that period, Huawei worked closely with our customers,” said Ding.

In 2020, Huawei supported the stable operations of more than 300 networks in more than 170 countries and helped operators offer online services and minimize the impact of the pandemic on their businesses. In collaboration with Huawei, the operators attracted 22 million new residential wireless broadband users around the world. Thanks to this, people can easily access telemedicine services and work from home.

“5G developed faster than we expected.”  More than 140 commercial 5G networks have been implemented in 59 countries.

According to Ding, more than 50% of these networks were built by Huawei. The ecosystem is also developing. In China , more than 68% of the smartphones distributed in 2020 were 5G phones. More than 200 industrial 5G modules and devices are currently available, supporting 5G applications in a wide range of industries.

Huawei’s Ryan Deng talking up 5G

According to reports prepared in 2020 by market research firms such as IHS, P3, OpenSignal and Meqyas, the best 5G networks in Seoul, Amsterdam, Madrid, Zurich, Hong Kong and Riyadh were the ones that Huawei built.

Ding highlighted that a good experience on the web is the foundation of commercial success and that these six cities are only the tip of the iceberg of its purpose of collaborative innovation with the operators.

For example, by implementing Huawei’s AAU 64T64R and market-leading multi-antenna algorithms, LG u + achieved greater spectrum efficiency and a network experience more than 25% better than other carriers. With Huawei’s Blade AAU, which can operate in the Sub3G and C bands, Sunrise reduced site acquisition time from 24 months to just 6 months and was the only operator with 5 consecutive outstanding ratings in Switzerland.

5G is becoming part of the core production processes of industries.  Looking ahead, Ding was optimistic about the prospect of a large-scale deployment of 5G industrial applications in 2021.

5G applications have been incorporated in more than 20 industries including manufacturing, healthcare, education and logistics. The manager pointed to examples of sectors in China where industrial 5G applications are already proving their value, such as in coal mining and steel fabrication and production, where the adoption of 5G technology has made production safer, smarter and more efficient. He also stressed: “5G is no longer exclusive to pioneer users, but aims to improve our daily lives. 2021 will be the 1st year with large-scale industrial 5G applications.

Operators will need new capabilities in planning areas network operations, implementation, maintenance, optimization and operations to achieve zero-to-one progress and replicate one-to-many success.

At the next MWC Shanghai, Huawei will hold in-depth exhibitions and discussions on these topics with stakeholders. of the sector, both online and through means that do not require connection. We will continue to innovate to help our customers develop the best 5G networks and achieve greater business success.”

SOURCE: Huawei

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Analysis by Iain Morris of Light Reading:

Of today’s 140 “live” 5G networks, Huawei built more than half, said Ryan Ding, the head of Huawei’s networks division, during the company’s traditional briefing before the annual MWC Shanghai show (normally scheduled for June, it switched places with the bigger Barcelona show this year due to coronavirus).

Huawei can rely on a domestic market that has awarded almost 90% of all mobile infrastructure business to Chinese vendors. When the number of 5G base stations in a country hits 700,000, as it did last year in China, any pain elsewhere becomes tolerable.  Several hundred thousand more are planned in 2021. Contrast that with Europe, where the entire region in 2019 hosted fewer than half a million mobile sites, according to Ernst & Young.

Even in Europe, Huawei’s networks business has not suffered as badly as it might have done. Several big countries have resisted political pressure to copy the UK and exclude Huawei from the future 5G market. They include Germany, where Huawei last year accounted for more than half the country’s mobile infrastructure. Its government undoubtedly fears the ramifications of a ban for exports of cars and machine tools to China.


Huawei’s massive fixed-line business has also been allowed to chug on outside the UK, which is now weighing a final decision. Smaller than the radio access networks business, broadband products still generated more than $8.4 billion in global revenues last year, according to Omdia, a sister company to Light Reading. Some 43% of that went to Huawei. In France, where authorities have indicated they will not renew licenses for Huawei’s mobile equipment, Orange counts Huawei as one of its two main broadband vendors (the other being Nokia).

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Several European operators, including Deutsche Telekom, Orange and Spain’s Telefónica, have previously bought Huawei equipment for the cloud services they offer to their business customers. “Huawei provides standards servers (with the so-called x86 architecture) for the Open Telekom Cloud,” said a Deutsche Telekom spokesperson, in an email to Light Reading, when asked if that equipment remained in use.

Reference:

https://www.lightreading.com/5g/huawei-is-proving-as-hard-to-stop-as-movie-supervillain

 

Global Data: Huawei #1 amongst 5 major LTE RAN vendors

Executive Summary:

GlobalData, a leading market data and analytics company, has rated Huawei’s LTE RAN portfolio to be a leader in the market. In competitive analyses of five major RAN vendors, GlobalData evaluated 4G LTE base station portfolios according to four key areas important to mobile operators: baseband unit (BBU) capacity, radio unit portfolio breadth, ease of deployment and technological evolution. GlobalData found Huawei to be a Leader in all four categories and a Leader overall among its peers.

Editor’s Note/ Disclaimer:

We don’t know whether Huawei paid Global Data (?) to evaluate 4G LTE vendor portfolios or if that was done indepedently on Global Data’s own initiative.  It’s disturbing that we could not find a related report or media press release on the company’s website after doing multiple searches.

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LTE RAN Basics: In the RAN, radio sites provide radio access and coordinate the management of resources across the radio sites. User Equipment (e.g. wireless network endpoints) are connected to Nodes (base stations or small cells) using LTE.  Radio Network Controllers are wirelessly connected to the core network which for LTE is called the Evolved Packet Core (EPC).    This is depicted in the illustration below:

Radio Access Network

Source:  Research Gate

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Huawei has introduced new advances in its LTE RAN portfolio to enhance the coverage and capacity of mobile networks. It also offers solutions to aid the coordination of 4G and 5G networks and to enable new services for operators.  The Chinese IT behemoth has the highest BBU cell capacity – in terms of both LTE carriers and Narrowband IoT – of any major RAN vendor. It also offers more radio units and more Massive MIMO options than other vendors and supports a wide array of 4G spectrum bands. To make deployment easier, Huawei offers multiple novel solutions, including its Super Blade Site and Bracelet Kit offerings. And to help operators evolve their networks technologically, Huawei has been proactive in commercializing spectrum-sharing capabilities such as its CloudAIR solution, which allows various access technologies (2G/3G/4G/5G) to use the same spectrum, and its SuperBAND solution, which can improve user experience under multi-frequency networks.

This portfolio is well-suited to meet the diverse needs of the world’s mobile operators, and Huawei continues to expand its RAN portfolio to help operators prepare for the future and maximize the value of their LTE networks.

Coverage:

Adequate network coverage is an essential characteristic for ensuring quality mobile services. It becomes especially important in LTE networks as 5G is deployed in high-frequency bands whose coverage footprint areas are more limited. LTE must cover the areas that 5G does not.

To enhance the coverage of 4G/5G networks, Huawei has introduced the Blade Pro solution. The Blade Pro Ultra-Wideband Remote Radio Unit (RRU) is a pole-mountable RU that supports three low or medium Frequency-Division Duplex (FDD) bands simultaneously: it currently supports 700 MHz, 800 MHz and 900 MHz; and in late 2021, it will support 1.8 GHz, 2.1 GHz and 2.6 GHz.

By supporting three frequency bands in a single 25-kilogram unit, the Blade Pro eliminates the need for two boxes, reducing the load on poles, easing the burden on installers and making deployment faster, smoother and less expensive. Making installation easier means operators are better able to increase coverage by expanding or densifying their networks.

Capacity:

Operators face the eternal challenge of keeping up with ever-increasing user demand for data at faster speeds in the space of finite spectrum. One way to add network capacity without finding additional spectrum is to deploy greater antenna arrays, upgrading radios with two transceivers to those with four or eight, for example, or adding Massive MIMO antennas bearing 32 or 64 arrays.

Huawei’s LTE RAN portfolio now includes a radio unit with eight transceivers and receivers for enhanced capacity, useful for urban hotspot areas. The “Smart 8T8R” solution also gives operators flexibility in their migration to 5G. The FDD 8T8R RRU is hardware-ready for 5G NR, and the antenna array is software-defined, meaning its configuration can be adjusted – without changing the hardware – for example, to six sectors for LTE and three sectors for 5G. The solution also dynamically adjusts the power supply allocated to sectors according to how users are distributed. This flexibility can be helpful in allowing operators to serve specific needs on a site-by-site basis and to adapt in real time to changes in user behavior. On TDD side, meanwhile, Huawei leverages its considerable research in TDD-LTE to offer an 8T8R IMB (Intelligent Multi-Beam) solution, which is also based on a software-defined antenna and promises to deliver 1.8-2.2x capacity gains compared with more common products.

For even higher capacity needs, Huawei has introduced the “Smart Massive MIMO” solution, a dual-band 5G-ready 4G radio with 32 transceivers and receivers promising three to five times the download speeds compared with more common products. Like the Smart 8T8R solution, Smart Massive MIMO automatically adjusts the power allocated to individual beams based on user traffic patterns. This lends efficiency in two ways, since Massive MIMO beamforming is itself a more efficient use of mobile spectrum than traditional antenna arrays, and the Smart Massive MIMO solution uses its power supply more efficiently than typical Massive MIMO gear.

4G/5G Coordination:

In addition to the ways Huawei’s aforementioned gear balances and coordinates 4G and 5G networks, its portfolio also includes other solutions to further optimize the relationship between the two.

Its SuperBAND solution uses artificial intelligence (AI) to aggregate network scheduling – the coordinated allocation of radio resources to mobile signals – among multiple frequency carriers, essentially boosting network capacity beyond the divisions and fragmentation of various spectrum bands. In 4G/5G networks, SuperBAND can perform this aggregation across both 4G and 5G, maximizing spectral efficiency and, ultimately, optimizing the quality of the user experience.

Meanwhile, Huawei also offers Dynamic Spectrum Sharing (DSS) as part of its CloudAIR solution. DSS allows 4G and 5G traffic to share the same spectrum bands, increasing spectral usage efficiency; it also allows 4G and 5G traffic to dynamically switch from one band to another, regardless of radio access technology, in response to congestion on specific bands, ensuring the best use of spectrum even as user behavior changes. CloudAIR goes even further, applying a similar spectrum-sharing function to 2G and 3G traffic as well for a more comprehensive capability that is especially relevant to markets where legacy networks remain.

New Service Enablement:

Enhancing and optimizing the network are important aims, but from a commercial perspective, one of the most important imperatives operators face is the need to deliver new revenue-generating services. Huawei’s LTE RAN portfolio addresses this requirement in multiple ways.

Huawei’s Voice-over-LTE solution, VoLTE Plus, helps operators migrate voice traffic from legacy technologies like 2G and 3G to LTE, not only achieving higher quality voice service but also allowing operators to sunset their legacy networks and repurpose their VoLTE investments for the future. In addition, Huawei’s latest VoLTE solution, goes further, adding four new capabilities that help protect the quality of voice service in 4G/5G networks:

  • 5G-to-LTE EPS fallback
  • LTE-to-5G fast return
  • New Enhanced Voice Services capabilities
  • Dedicated services that allow for optimization on LTE

Beyond voice, Huawei’s LTE portfolio also supports Narrowband IoT, to capture opportunities in the Internet-of-Things space. The vendor’s roadmap also targets support for 5G NB-IoT in particular, which will allow operators with existing IoT services to migrate those services to their 4G/5G network and replace disparate or ad-hoc legacy networks with a unified network that yields multiple revenue streams from a common infrastructure investment.

Huawei’s portfolio also enables new services via fixed wireless access (FWA) products. Amid the global pandemic, the increase in telecommuting and home-based learning based on video connections has increased the demand for residential broadband networks. Where fiber isn’t available, FWA is vital in building these residential networks. Huawei’s LTE-based FWA solutions have achieved enviable momentum in the market. The vendor has also added 4G/5G customer premises equipment to its portfolio, giving these networks a future-proof migration path to continued service enablement.

Conclusion

Huawei’s LTE RAN portfolio continues to evolve in order to help operators maximize the value of their networks as they prepare for the future. New solutions in the portfolio enhance the coverage and capacity of LTE networks as well as maximize network efficiency by coordinating 4G and 5G operations. Meanwhile, Huawei offers multiple solutions aimed at enabling the delivery of additional services that can help operators grow revenue in a variety of ways, including VoLTE, the Internet of Things and FWA.

SOURCE:  GlobalData

Reference:

https://www.prnewswire.com/news-releases/globaldata-lte-ran-innovation-and-competitiveness-insight-301202706.html

 

WSJ: Samsung (not Ericsson or Nokia) best alternative to Huawei for 5G network equipment

By Elizabeth Koh

The Trump administration’s campaign pressuring allies to avoid 5G equipment made by Huawei Technologies Co. always had a hometown hitch: The U.S. doesn’t have a domestic manufacturer to rival the Chinese company.  The best alternative may be South Korea’s Samsung Electronics

Samsung makes all of its network gear domestically and in India. That distinguishes it from its European rivals, Ericsson AB and Nokia Corp. , which both have significant manufacturing operations in China. Beijing has weighed retaliating against Nokia and Ericsson for any action by European Union members against Huawei by barring them from sending their Chinese-made products abroad, according to people familiar with the matter. Were that to happen, it could slow deliveries by the European companies in an already-competitive 5G rollout. The Chinese Foreign Ministry has denied considering that option.

Samsung already has some unique ties with the U.S. beyond the home appliances filling American homes. The company long ago won Pentagon clearance for government use of Samsung devices equipped with its Knox security software, which allows users to safeguard sensitive data on their phones and for years was overseen by a former Pentagon chief information officer. Devices with Knox software are used by military personnel in the U.S., U.K. and Canada.

The South Korean firm two years ago opened a new, seven-story office in Washington just a mile from Capitol Hill. Along with Nokia and Ericsson, Samsung drew an invitation for a planned White House strategy meeting on 5G in April that has been delayed indefinitely.

Samsung is far better known as the world’s largest producer of smartphones and televisions. But the firm is making a big push to turn its sleepy networks business into a 5G winner. Its differentiator is its product range, covering all aspects of 5G, from smartphones to base stations to the underlying chips that make network connections possible.

Samsung is one of four major 5G players. Huawei controls about a third of the 5G network market, trailed by Ericsson with a fourth and Nokia with about a fifth, according to market tracker Dell’Oro. Samsung has roughly 13%.

After flirting for years with major U.S. telecom carriers with limited success, Samsung is pushing hard—and succeeding—in its efforts to get a second look with Huawei off the table.

In September, Samsung announced it had signed a $6.65 billion deal with the largest U.S. wireless carrier, Verizon Communications Inc., the Korean company’s biggest such contract to date. Samsung, which is a secondary equipment vendor to AT&T Inc. and T-Mobile US Inc., is also still pursuing bigger deals with those carriers. Carriers often use multiple vendors for network infrastructure so they don’t rely on a single source of equipment.

Samsung’s 5G momentum is building just as the U.S. rollout is expected to hit another gear following Apple’s recent introduction of its first 5G phones.

PHOTO: GEORGE FREY/REUTERS

But Samsung is still, in part, relying on Ericsson and Nokia tripping up to bolster its case, says Ryan Koontz, a senior research analyst for Rosenblatt Securities, a New York-based brokerage firm.

Nokia, for example, was Verizon’s primary equipment vendor before the Samsung deal, Mr. Koontz says. But several problems—including a recent stumble with a key computer chip for 5G deployment—likely hurt Nokia’s relationship with the carrier for years, he says. Neither Nokia nor Verizon commented for this article.   Ericsson, meanwhile, is just emerging from a costly yearslong restructuring, though it has recently returned to profitability.

Samsung’s timing is perfect,” Mr. Koontz says. “The 5G programs are set up for a banner year.”   Samsung’s 5G momentum is building just as the U.S. rollout is expected to hit another gear following Apple Inc.’s recent introduction of its first-ever lineup of 5G iPhones. The new iPhones are expected to boost sales of 5G-capable handsets to 20% of all U.S. phone sales in 2020, according to market tracker Counterpoint Research. That would mean substantially more subscribers to motivate the nation’s three main carriers to speed the expansion of their 5G networks. All three have some 5G coverage now, though some of the fastest service remains limited to certain cities.

                                                   Worldwide Total Telecom Equipment Market ShareSource: Dell’Oro Group:

HuaweiNokiaEricssonZTE, and Cisco comprised 28% (28%), 16% (17%), 14% (14%), 10% (8%), 7% (8%), respectively.

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Samsung ships one out of every five smartphones shipped globally. The company has sought to leverage its wide base of users as an asset for its network business, touting its experience building 5G phones and its devices’ ability to interact smoothly with its end-to-end network offerings. Controlling the network infrastructure throughout, Samsung says, ensures faster speeds.

The South Korean conglomerate had set a target back in 2018 to grab 20% of the 5G network market by next year. But attaining that goal won’t be easy, despite its deep pockets and Huawei being blocked in many key markets.

Samsung’s push to broaden its network business is unprecedented for the industry, because it has such a small presence for existing 4G LTE and 3G networks globally, industry analysts say. Network gear traditionally builds on the equipment laid down for previous wireless standards, meaning bigger players in the network industry have enjoyed a solid starting advantage.

Even with Huawei forcibly stripped out of the network market, operators must weigh the significant cost and effort that would be required to tear out their existing equipment for another company’s new network. In the U.K., backing away from Huawei could delay its 5G rollout for years, and operators could pay billions to replace their hardware, the British minister in charge of digital issues, Oliver Dowden, has said.

Should Samsung succeed in making its case in the U.S., the payoff in the form of a substantial revenue increase likely wouldn’t emerge until late next year, analysts say. But Samsung is unlikely to see another upstart challenger making a similar case while the U.S. lags behind in making network equipment at home.

There’s not a lot of choices for some networking equipment,” says Stan Adams, deputy general counsel at the Washington, D.C.-based nonprofit Center for Democracy and Technology. “If there are concerns about security and foreign-made networking equipment, that’s going to be a problem until we change our manufacturing base.”

Ms. Koh is a Wall Street Journal reporter based in Seoul. She can be reached at elizabeth.koh@wsj.com.

https://www.wsj.com/articles/samsung-may-be-the-beneficiary-as-the-u-s-targets-huawei-11605047937?mod=hp_jr_pos1

Huawei Executive: “China’s 5G user experience is fake, dumb and poor”-is it a con game?

At the opening ceremony of the China International Information and Communication Exhibition on October 14th, Ding Yun, executive director of Huawei Technologies Co., Ltd  said that China’s 5G user experience has three problems of “fake, dumb, and poor.”  In particular, some users have a 5G LOGO on their mobile phones, but they are not connected to the 5G network, cannot make 5G calls, or frequently switch signals, according to an article by Xia Xutian on the Sina Tech website.

How could a Huawei executive say such things about its home country which supposedly has very close ties, impact and influence on the world’s top telecom equipment supplier and #1 or #2 global smartphone vendor?  See Comment and Analysis below for more on this.

While China has built the world’s largest 5G network, it has a gap in experience, coverage, and commercial closed-loop operation, Ding Yun said. For comparison purposes, that the 5G downlink rate in South Korea is more than 600 megabits while the average in China is only a bit more than 270 megabits.  South Korea’s 5G user penetration at the end of September reached 25%, while China’s penetration level is only about 8%.

“Objectively speaking, I am also a 5G user. We have just completed the first phase of 5G construction today. It is indeed a great improvement over the 4G experience, but our network still has many problems. I use three words to sum it up: fake, dumb, bad/poor.”

Huawei's Ryan Ding is scathing about China's much lauded 5G rollout. (Source: Huawei)

Huawei’s Ryan Ding speaking at the China International Information and Communication Exhibition about 5G in China

Photo Credit: Huawei

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What’s fake? In many cases the user’s smartphone has a 5G logo but no 5G coverage.  The experience is still 4G, but the display is 5G.  Those users are not connected to the 5G network and can’t make 5G calls.”

What is dumb? Some places in China have 5G signal coverage, but there is no 4G anchor station, so calls cannot be made.  He said the anchor point of 4G happens to be on the edge of multiple cells. The frequent handover of 4G and 5G results in a very poor user experience.

Ding Yun noted that although the number of 5G users in China has reached 150 million, the matching rate of networks, mobile phones and packages of 5G users is still very low. Many users have bought 5G packages, but their mobile phones are still 4G. There are also many users who have 5G mobile phones, but there is no 5G network coverage in their geographical area.

Ding Yun pointed out that operations and maintenance costs are also an unavoidable issue for 5G. At present, the peak rate of 5G is 25 times that of 4G, but 5G equipment (especially mmWave if and when deployed in China) will greatly increase the power consumption of 5G base stations, which poses a huge challenge to the entire power supply system (not to mention the huge electricity costs incurred by the 5G network operator).

“We have conducted a survey on the power consumption of China’s network. About 32% of the sites have insufficient power, and in some places, the battery capacity is also insufficient,” he added.

Ding Yun urged 5G network operators to:

1] build out 5G business ecosystems through innovative and differentiated applications;

2] reduce expenditure and optimize the TCO of operators from an overall perspective; and

3] look towards the future and upgrade the current operating platform as soon as possible to face potential problems such as the bill storm that 5G will bring.

In response to the 3rd objective, Huawei is using big data to connect user data, operational data, and terminal data, so that the machine, network, and applications can provide a better match.

In conclusion Ding Yun suggested the following:

  • To build the most successful 5G for thousands of industries, wireless network operators must first have a deep understanding of the industries they are targeting.  Different industries have different specific requirements for 5G in terms of latency, reliability/availability, throughput, security, etc. Therefore, to develop 5G industry applications, we first need to clarify the boundaries of capabilities, consolidate the ability base to serve thousands of industries, implement a replicable business model, and actively promote ecological construction, especially the development of application ecology.
  • As operators expand the construction of 5G industry applications from connection to connectivity + computing, and then to SLA (network) slicing, their corresponding business models will gradually shift from a direct sales model to a value sharing model that combines active integration and integration . Ultimately, the business model of 5G industry applications will develop in the direction of multi-path, closed-loop, and multi-win as operators choose their roles.
  • Unify (5G and other) standards and develop ecology. (What 5G standards is he referring to? There are none at this time).  The application development of the 5G industry is not only a matter for operators, but also requires the entire industry chain to “stretch it into one strand” and integrate the telecommunications industry with other industries to form industry standards. Only in this way can the development of 5G industry applications be accelerated.

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Comment and Analysis:

Ding Yun’s remarks are a refreshing change from the usual self congratulatory speeches given by 5G network operators and equipment suppliers (like Huawei).  We are astonished he can be so honest with the Chinese government and China Communist Party having so much control over telecommunications and other industries in China.

Here are a few copy/paste (and translated from Chinese to English) Sina reader comments:

“I have not found a demand for 5G in the current application (environment)”

“Haha, so embarrassing[Yun Bei][Yun Bei]

“China’s 5G, got up early. Experience the night episode (where there is no 5G service to conserve electricity costs for carriers)”

“In Qingdao, there is basically no real 5G SA network. When only the SA mode is selected, the 5G signal is gone, and now the operator’s 5G speed limit is 500M bps”

“The conclusion is that I continue to use my 4G”

“The worst is a three-year contract with China Mobile”

 “The three major operators are too hateful and must be punished.”

“China network operators are deliberately lowering the 4G signal, forcing everyone to use 5G. Just this dirty trick, give his grandma a whistle.”

“No 5G signal coverage.”

“Fake, dumb, and bad are synonymous with China’s three major network operators.”

“What is the conclusion? For 5G, it’s better to wait first, don’t worry about changing phones [Hee hee], let alone changing pricing packages. It’s not very useful and costs money.[Yun Bei]

“The basic meaning is, the operator, burn me[doge]

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Email from a very knowledgeable, anonymous Chinese 5G expert corroborates what Ding Yun said:

  • China claims they have 100 millions of 5G end point devices now.  Actually, those are mostly 4G handsets whose users were coerced to subscribe to a 5G package. The 3 major state owned network operators purposely lowered 4G-LTE speeds and forced subscribers change to the 5G package which only provides the previous 4G-LTE speeds.
  • China claims they have deployed 40,000 5G NR base stations. But without URLLC (ultra high reliability, ultra low latency) enhancements to 5GNR (3GPP Release 16) and mMTC (massive machine to machine communications) standards, 5G NR is not complete.  (3GPP has not set a date for the conclusion and evaluation of URLLC in the RAN performance testing which is supposed to be in the “frozen” 3GPP Release 16 set of specs)
  • There are no mmWave 5G base stations at all in China.
  • Currently China 5G  base stations consume huge amounts of energy, so the 3 major 5G network operators shut them down at night to reduce electricity bills.  Note the above readers comment, “Experience the night episode.”
  • Former minister of China Ministry of Finance and seated deputy minister of the Ministry of Industry and Information Technology (MIIT) recently publicly expressed concerns about China’s 5G development and investments.  They said China had made bad 5G investments and that China has not yet balanced the 3G and 4G investments made by its network operators).
  • What kind of joke is this?

References:

https://finance.sina.com.cn/tech/2020-10-15/doc-iiznezxr6037613.shtml

https://t.cj.sina.com.cn/articles/view/1642471052/61e61e8c02000ynrk?cre=tianyi&mod=pcpager_tech&loc=1&r=9&rfunc=3&tj=none&tr=9

https://www.wsbtv.com/news/ap-explains-promise/KEKKYBDSVGE4W66CY24PMOYMJA/

Dell’Oro: Telecom equipment revenues to grow 5% through 2020; Huawei increases market share

Dell’Oro analysts say first half global telecom equipment [1.] revenues were up 4% YoY in 1st half of 2020, as 5G infrastructure investments offset declines due to the impact of the coronavirus pandemic.  The market research firm forecasts a 5% advance for the entire year.

Rollouts of 5G wireless, especially in China, were a primary cause of the first half increases, which benefit the entire supply chain, including telecommunications semiconductors.  China 5G spending surely helped Huawei increase its market share, despite U.S. sanctions.

Note 1. Dell’Oro includes the following types in the telecom equipment market: Broadband Access, Microwave & Optical Transport, Mobile Core & Radio Access Network, SP Router & Carrier Ethernet Switch

In the first half of 2020, double digit growth in mobile infrastructure offset declining investments in broadband access, microwave and optical transport and service provider routers and ethernet switches, Dell’Oro said. Statista analysts in June said 2020 telecom equipment revenues should nearly reach $50 billion.

Rankings of the biggest telecom equipment providers  remained the same in the first half of 2020, with Huawei dominating at 31%, followed by Nokia and Ericsson tied at 14% each, then ZTE at 11% and Cisco at 6%, according to Dell’Oro.

Huawei telecommunications market share 2020

Second quarter results were stronger than expected following a 4% decline in the first quarter. The biggest driver was a strong rebound in China across 5G Radio Access Network, 5G Core and other areas. Supply chain disruptions of the first quarter also stabilized in the second quarter, Dell’Oro said.

Additional key takeaways from the 2Q20 reporting period include:

  • Following the 4% Y/Y decline during 1Q20, the overall telecom equipment market returned to growth in the second quarter, with particularly strong growth in mobile infrastructure and slower but positive growth for Optical Transport and SP Routers & CES, which was more than enough to offset weaker demand for Broadband Access and Microwave Transport.
  • For the 1H20 period, double-digit growth in mobile infrastructure offset declining investments in Broadband Access, Microwave and Optical Transport, and SP Routers & CES.
  • The results in the quarter were stronger than expected, driven by a strong rebound in China across multiple technology segments including 5G RAN, 5G Core, GPON, SP Router & CES, and Optical Transport.
  • Also helping to explain the output acceleration in the quarter was the stabilization of various supply chain disruptions that impacted the results for some of the technology segments in the first quarter.
  • Shifting usage patterns both in terms of location and time and surging Internet traffic due COVID-19 has resulted in some infrastructure capacity upside, albeit still not proportional to the overall traffic surge, reflecting operators ability to address traffic increases and dimension the network for additional peak hours throughout the day using a variety of tools.
  • Even though the pandemic is still inflicting high human and economic losses, the Dell’Oro analyst team believes the more upbeat trends in the second quarter will extend to the second half, propelling the overall telecom equipment market to advance 5% in 2020.

Semiconductor officials are less optimistic for the rest of the year with SIA President John Neuffer recent saying “substantial market uncertainty remains for the rest of the year.”   Semiconductor sales were up 5% in July, reaching $35 billion, but dropped in early August, according to reports.

According to the Semiconductor Industry Association, about 33% of all semiconductors made (the largest category) are devoted to communications, including networking equipment and radios in smartphones.

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References:

Key Takeaways – The Telecom Equipment Market 1H20

 

https://www.fierceelectronics.com/electronics/telecom-equipment-revenues-to-grow-5-through-2020