Huawei in early talks with US firms to licence 5G platform

Marco Green
October 21, 2019

Well, right now there are no United States 5G providers and Ericson and Nokia are quite expensive, so Huawei is getting a lead once again. This would let American companies leap into 5G and offer more competition, even if they're technically "borrowing" from Huawei. US officials tried to get domestic tech firms like Cisco and Oracle to produce this equipment, but both declined stating that it would take too much time and money for them to enter this business.

In May, Huawei, the world's biggest telecoms gear supplier, was put on a USA boycott over national security concerns, prohibiting it from purchasing American-made parts without an exceptional permit.

Senior VP Vincent Pang told Reuters that Huawei is in early discussions to license its 5G tech to American companies. Although the telco companies remain anonymous as per now, Vincent Pang said some companies expressed interest in both a long-term deal or a one-off transfer.

Why Huawei was Blacklisted from the US?

The United States administration already blacklisted the company for spying on customers, while the company denied the claim. As a result, the company can not buy American-made parts.

The possibility of a coincidental charge in return for access to Huawei's 5G licenses, licenses, code and skill was first coasted by CEO and organizer Ren Zhengfei in interviews with the New York Times and the Economist a month ago. At the time, it was unknown whether any USA firms would be interested in a one-time licensing deal.

Huawei's Pang wouldn't guess whether a pact would be signed between his company and any of the anonymous USA carriers.

"It's just not realistic that carriers would take on this equipment and then manage all of the software and hardware themselves", said a correspondent to Reuters. "If there are software bugs that are built in to the initial software, there would be no way to necessarily tell that those are there and they could be activated at any point, even if the software code is turned over to the mobile operators", the official added. Nonetheless, he warned that the analysis and improvement funding required by repeatedly enhancing the platform after a single-transfer from Huawei can be very expensive for the businesses.

Huawei has spent billions to develop its 5G know-how since 2009. We think that this official is being coy; by "bugs", he could mean technology created to send intelligence to Beijing. The company kicked off an "iron army" overhaul of its business in August while revealing HarmonyOS, its Android alternative, the same month, but it would appear that the latter is still some time off from being ready for widespread deployment.

Other reports by Click Lancashire

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