Huawei 5G push unfazed by US sanctions

Huawei 5G push unfazed by US sanctions

Firm sourcing from alternative suppliers

Ken Hu, deputy and rotating chairman of the board of directors, is confident about Huawei's ability to deliver its 5G equipment. SUCHIT LEESA-NGUANSUK
Ken Hu, deputy and rotating chairman of the board of directors, is confident about Huawei's ability to deliver its 5G equipment. SUCHIT LEESA-NGUANSUK

Despite the challenges posed by the US ban on Huawei, the multinational telecom firm says 5G network momentum continues globally.

As Huawei provides telecom equipment and sells consumer electronics worldwide, the company is making assurances that 5G equipment supplies will not be affected by US sanctions.

Ken Hu, deputy and rotating chairman of Huawei's board of directors, said at the Mobile World Congress 2019 (MWC19) in Shanghai that US sanctions imposed since May were unfair because the allegations lacked substantial evidence.

"As a global company, Huawei will proactively abide by laws and regulations in transactions with suppliers, customers and internal operations," Mr Hu said.

He voiced confidence in Huawei's ability to deliver its 5G equipment with no negative impact on customers who have already signed contracts, as the company is sourcing from alternative non-US suppliers for self-developed 5G components.

"Huawei's 5G innovation is a marathon," Mr Hu said. "We invested US$4 billion on research and development of 5G in the past 10 years, gathering 2,570 patents or 20% of total patents on 5G technology, and will continue with R&D investment."

Huawei currently has 50 5G commercial contracts and ships to more than 150,000 stations. Of the total 5G commercial contracts, 28 are from Europe, 11 from the Middle East, six from Asia-Pacific, four from the US and one from Africa.

"By the end of 2019, we expect to have 500,000 stations for 5G to maintain 5G leadership," Mr Hu said.

In the next phase of acceleration in terms of 5G deployment, the focus will be on devices and applications, he said.

"Huawei will promote the open 5G ecosystem and cross-sectoral collaboration to enable real applications of 5G technology that address business challenges," Mr Hu said.

Real applications of 5G that the company is targeting include connected vehicles, smart factories, smart healthcare, smart grid, smart education, urban public safety, drones, agriculture and new media.

The company is also focused on smart 5G devices that are easier to operate.

"Foldable smartphones with larger screens will enrich the user experience in the 5G era, particularly for video games, online shopping and multi-angle broadcasting," Mr Hu said.

Ryan Ding, executive director of the board and president of Huawei's carrier business, said 5G is gaining momentum in commercial adoption globally.

In the first half of the year, South Korea, Britain, Switzerland, Italy and Kuwait have launched commercial 5G networks, two-thirds of which were built by Huawei.

Several industries are starting to embrace 5G, and 5G is starting to explode into prominence, promoting a comprehensive digital transformation and improving efficiency in many industries.

Michael MacDonald, group chief technology officer and executive consultant for Huawei Southeast Asia, said Thailand is one of the top 10 key markets globally for Huawei for overall business, not just 5G.

Thailand is actively preparing for 5G but is still in the trial phase of services, he said, whereas the Philippines already has commercial services.

Mr MacDonald recommended the 2.6GHz band for 5G, arguing that it's more cost-effective in terms of availability of devices.

Huawei chief executive Ren Zhengfei said the company's revenue will fall $30 billion short of expectations because of the US sanctions.

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