U.S. actions against Huawei could delay global 5G rollout

U.S. actions against Huawei could delay global 5G rollout
Sure, putting Huawei on the Commerce Department's Entity List is designed to punish Huawei (some would point out that it also hurts U.S. companies like Google, Qualcomm, Intel, Synopsys and Cadence Design Systems), but it also has an effect on the global rollout of 5G. Let's first take a step back. The next generation of wireless connectivity offers download dataspeeds up to ten times faster than 4G LTE. And once 5G becomes available everywhere, we will see things like driverless cars and new inventions that we can't even conceive of right now. And Huawei, as the world's top supplier of networking gear, is heavily involved in the global rollout of 5G.

But the ban on Huawei could slow down the process of making 5G available throughout the world. According to Reuters, several companies are not allowing their employees to have conversations with Huawei employees to discuss topics like technical standards for 5G. Firms like Intel, Qualcomm, and even South Korean carrier LG Uplus are not taking part in talks that are important to help in the development and buildout of 5G on a global basis. The Trump administration gave Huawei a limited three-month reprieve from the ban that prevents it from obtaining U.S. parts and software; the exemption ends in August and allows U.S. companies to talk with Huawei "as necessary for the development of 5G standards." But U.S. firms are not forced to engage in these conversations with Huawei. And many American firms continue to refrain from having any discussions with the beleaguered Chinese manufacturer; while the government says it is okay for now, these companies still fear getting called out and punished by the Trump administration.

Huawei is a member of several organizations that set technical standards for 5G

Huawei is a member of several organizations that are tasked with the job of setting technical standards for 5G. But as an example of the confusion that surrounds the U.S. ban and the not so visible future of Huawei, the Institute of Electrical and Electronics Engineers (IEEE) restricted Huawei engineers from taking part in peer reviews. However, after double checking with the Commerce Department, the IEEE was given the green light to allow Huawei engineers to participate in the peer reviews.

The U.S. has been warning its allies not to allow wireless providers in their countries to use Huawei networking equipment. The fear is that the company puts backdoors in its equipment so that it will be able to send intelligence back to Beijing when requested to do so by the communist Chinese government.

Other companies that compete with Huawei in the networking equipment industry include Nokia, Ericsson, ZTE and Alcatel-Lucent. So far, the U.S., Japan, and Australia have banned the use of Huawei networking gear in their countries. Several European countries like England and Germany are still deciding what to do about allowing the Chinese manufacturer's equipment to be used to create 5G networks inside their borders. Others, like France, are not questioning Huawei and have no issues allowing their wireless providers to use the controversial company's gear.

For 5G to reach its potential globally, a consensus will have to be reached about whether or not to allow Huawei engineers to take part in any future discussions about 5G technical standards.



1. OneLove123

Posts: 1089; Member since: Aug 28, 2018

So, our average 5G speed will be like 30mbps.

2. Leo_MC

Posts: 7432; Member since: Dec 02, 2011

Why would IEEE delay the adoption of the standards unless the Huawei engineers participate in talks? Huawei's patents can be allocated to the other SEP owners and 5G can go on as planned with Huawei having 0% of SEPs.

3. mootu

Posts: 1520; Member since: Mar 16, 2017

And which companies will do the roll out? Nokia and Ericsson both manufacture thier equipment in China, both have members of the CCP on thier boards and both are subject to the same Chinese local laws as Huawei. In other words if the Chinese government order them to turn over info they have no choice but to do so. Alcatel-Lucent does not have the capabilities for 5G rollout on a national level. Samsung may be able to do a large roll out but they are behind others tech wise when it comes to networking.

6. Leo_MC

Posts: 7432; Member since: Dec 02, 2011

Nokia, Ericsson or Qualcomm are not in any way subject to Chinese local laws; they own joint venture companies in China that are subject to Chinese laws, but that's it; every company can simply close the Chinese subsidiary, if the communist government asks them to do anything. Manufacturing can be done in several plants they have all over the world; there are plenty of old plants they can all use (Nokia in Western and Central Europe, Ericsson in Central and Eastern Europe or all over the Asia - Japan is filled with plants, Taiwan, Malaysia) and plenty of skilled workers; plus, if Huawei is no longer going to have SEPs, who do you think Taiwanese TSMC factories are going to manufacture for? And last, but not least, IEEE is handling SEPs management, it doesn't do manufacturing. With or without Huawei, 5G rollout is safe and it will happen on schedule.

7. mootu

Posts: 1520; Member since: Mar 16, 2017

The joint ventures are equal 50 - 50 partnerships, they don't OWN them the keyword is partnerships, and both companies have recently released statements that they ARE subject to Chinese local law. and as i said both have CCP members on thier boards. They are both in the same boat as Huawei, but the US won't admit that as they have bo alternative. The US has no comanies competent in 5G networking. You are talking crap that they could just up sticks and move anywhere quickly, that kind of thing takes years, building, tooling, infrastructure staff training and supply chain takes a long time and they are already struggling with output. Also how do suggest that Huawei are stripped of thier patents?, they are Huawei's, they paid all the R&D and would take to court anyone who tried to do so fully holding up the 5G rollout worldwide. If people could be stripped of patents because somebody doesn't like them then Qualcomm would have been out of business years ago. it would make the patents system null and void.

9. Leo_MC

Posts: 7432; Member since: Dec 02, 2011

The percent of ownership in joint ventures can be from 0.(1)% to 99.(9)%; there's no indication that the shares need to be equal. "both companies have recently released statements that they ARE subject to Chinese local law" There is no such report, because that simply isn't true; only the joint corporations that operate in China are subject to Chinese law; Telefonaktiebolaget LM Ericsson - the mother company - is only subject to Swedish laws. "The US has no comanies competent in 5G networking" Qualcomm, Cisco, Intel, IDTC. "building, tooling, infrastructure staff training and supply chain" That's why I said they can use old factories (that already are built, have infrastructure and supply chains) in Europe or Japan. "Also how do suggest that Huawei are stripped of thier patents?" No, I'm saying that IEEE can remove any Huawei patent from the list of SEP (exactly how Europe did with Qualcomm: "fk your CDMA2000 standard, in Europe the CDMA standard is W-CDMA"; that's why QC made 0€ in Europe and had exactly 0.0% market share until a few years ago).

4. jacky899

Posts: 430; Member since: May 16, 2017

I remember Trump rallying American hate for Huawei on the news saying Huawei's 5G tech is stolen from the hard work of American companies, who in reality is far behind China in 5G tech. The world already recognized Huawei as the biggest contributer of 5G research and development and Huawei holds the most 5G patents. Recently Trump had to go back on his words and said on the news that the US companies need to catch up to China in 5G tech. That's why you can never trust government propaganda

5. Habib111

Posts: 45; Member since: Feb 12, 2019

Hmm.. so the us is far behind in tech! I wonder if the grace period would be enough for the US to produce their own 5G

8. mootu

Posts: 1520; Member since: Mar 16, 2017

Doubt it, in reality in the 5G world most experts say that Huawei is around 18 months ahead so it would take around 18 months just for others to catch up, thats if they can afford the R&D and Huawei would still be moving forward as well. Huawei spent $15 billion on R&D last year and this year are expected to spend $20 billion making them the worlds no.1 R&D spender.

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