On December 3, Global News broke the news that many telecommunications companies in Canada were forced to update their equipment because the government banned the use of Huawei’s network equipment. The cost has increased. At present, these telecommunications companies have contacted the federal government and demanded compensation from the government.
It is understood that many Canadian telecommunications companies have spent more than 700 million US dollars on Huawei equipment. Because the Canadian government believes that the access of Huawei’s 5G equipment will pose a security threat to national interests, the Canadian government has been hesitant to completely ban Huawei. Participate in 5G construction in Canada.
Huawei’s 5G technology is No. 1 in the world
As we all know, in the current global 5G technology field, Huawei ranks first. On November 17, 2016, Huawei’s polar code solution was approved as the final 5G solution at the meeting. The 5G era officially opened, and Huawei became one of the leaders of the 5G standard.
According to public data, there are currently as many as 21,000 clusters of essential patents for 5G standards worldwide. Among them, Huawei ranked first in the world with 15.39% of patents, while Qualcomm ranked second in the world with 11.24% of shares, followed by ZTE, Samsung, and Nokia, with 5G patents accounting for the respective proportions. 9.81%, 9.67%, 9.01%; ranked third, fourth, and fifth in the world;
After Huawei has gained advantages in 5G technology, it has received olive branches from many countries around the world. In 2019, as an important global telecommunications equipment supplier, Huawei’s 5G equipment projects have received orders from multiple countries, and Europe has 21 Countries or regions have clearly stated that they will use Huawei’s 5G equipment.
The Spanish operator Telefonica has confirmed that it will use Huawei equipment in the core network of its 5G network and will adopt a multi-vendor strategy; the operator has introduced Huawei’s kit equipment in its 2G and 4G cores.
In addition, Telefonica, one of Germany’s three largest telecom operators, said it will use Huawei and Nokia equipment to build a 5G network; Telenor also said that it will continue to use the equipment of the Chinese supplier Huawei in the 5G network construction, while adding Sweden Ericsson is a 5G supplier.
U.S. unites multiple countries to crack down on Huawei
However, the good times are not long, and Huawei’s outstanding performance in 5G technology has caused dissatisfaction in the United States. On May 15, 2019, the Trump administration of the United States began a series of sanctions against Huawei, including Huawei and its subsidiaries on the “entity list” of export control, prohibiting Huawei from using chip design software from US companies. Many chip manufacturers are strictly ordered to provide chips with American technology to Huawei, and many of Huawei’s businesses have been severely hit.
Not only that, the Five Eyes Alliance, including the United States, the United Kingdom, and Australia, has completely banned or severely restricted the existence of Huawei equipment in the country.
The United States has completely replaced all domestic Huawei networks on the grounds that Huawei’s 5G network threatens the national security of the United States. It is understood that more than 50 operators in the United States use Huawei and ZTE equipment or services, most of which are small companies; The FCC previously stated that it would cost US$1.837 billion to replace the equipment of these companies, but only about US$1.62 billion would be eligible for government subsidies.
The UK also officially announced in July 2020 that it has decided to stop using Huawei equipment in 5G construction. It is clearly prohibited to continue to purchase any new 5G equipment from Huawei after December 31 this year, and also stated that by 2027, the telecom network must remove all Huawei components from the 5G network.
Australia, which is a military ally with the United States, also announced that Huawei has been banned from providing 5G technology to Australia. Before that, Huawei was the main supplier of 4G network equipment in Australia and met more than 55% of Australia’s 4G demand. Without the obstruction of the Australian government, Huawei is expected to gain a competitive advantage in the construction of Australia’s 5G network.
In addition, New Zealand telecom operator Spark New Zealand previously issued a statement stating that the Director of the New Zealand Government’s Communications Security Bureau (GCSB) rejected the company’s proposal to use Huawei’s 5G equipment on the grounds that it “posed a major risk to national security.” It is reported that New Zealand is A member of the “Five Eyes Alliance” (U.S., Britain, Canada, Australia and New Zealand), a Western intelligence sharing alliance headed by the United States.
Italy is also one of the countries that have banned Huawei. Previously, Italy banned its domestic operator Fastweb from signing a 5G equipment supply agreement with Huawei.
Disabling Huawei devices will have its own consequences
According to public information, data shows that there are currently more than 1.65 million 5G base stations built in the world, and more than 1.15 million 5G base stations have been built in China, accounting for 70% of the number of 5G base stations built in the world, and 5G terminal users account for 80% of the world. % Above, reaching 450 million households. All prefecture-level cities, over 97% of counties and urban areas, and 40% of towns, towns and districts in China have achieved 5G network coverage.
As the only supplier that can provide 5G end-to-end technical solutions, Huawei has contributed a lot to the construction of 5G base stations in my country. According to public data, as of August 1, 2021, there are more than 703528 5G base stations in my country. Huawei contracted the construction, accounting for 59% of all 5G base stations that have been built. On October 4, China Mobile once again announced the 2021 4G/5G converged core network procurement bidding data. Huawei once again won 7.4 billion yuan in 5G For large orders, the order share is still as high as 60%. From this point of view, Huawei’s development in 5G technology has not been greatly affected.
On the contrary, countries that have banned Huawei’s 5G equipment are facing obstacles in the progress of their domestic 5G network construction.
After abandoning Huawei’s 5G equipment, Australia chose to independently develop 5G technology. However, after spending 245 billion yuan, Australia has not been able to make a breakthrough in the 5G field, and the newly built network is not as good as the previous 4G network. Therefore, 5G construction in Australia was forced to be delayed, and construction costs must be increased by at least 30%.
After the UK announced the ban on Huawei’s 5G equipment, its domestic 5G network construction lags behind by two to three years and brings about 2 billion pounds of losses to various telecom operators. A previous survey by the Oxford Economics Institute also showed that the expulsion of Huawei will increase the cost of 5G deployment in the UK by 9% to 29% in the next ten years.
At present, Canada, as one of the five-eye alliance allies, is still hesitating whether to completely ban Huawei from participating in the construction of domestic 5G networks. Earlier, it was reported that if Huawei equipment is disabled, Canadian telecom operators will dismantle Huawei network equipment that is in use. , The Canadian government and telecommunications providers will likely fall into a 1 billion Canadian dollar “compensation dispute”, and will increase the cost of their 5G network deployment, and will also make services to consumers more expensive.
In recent years, many Western countries, LED by the United States, have repeatedly unreasonably suppressed and sanctioned Huawei’s 5G projects. However, because Huawei has a large number of core patents in the 5G field, Huawei’s 5G projects have not been greatly affected, and they have begun to collect patent licenses from mobile phone manufacturers. In the revenue report released by Huawei for the first quarter of 2021, net profit increased significantly, reaching 16.9 billion yuan. About 4 billion yuan of profit comes from patent fees, which also shows how important it is to be ahead of people in terms of technology.
For a long time, Huawei has never stopped its road of technology research and development. According to public data, Huawei’s R&D investment in 2021 reached 141.893 billion yuan. Even though Huawei is currently affected by various factors and related business development has been frustrated, it is still in the process of research and development. In terms of costs, they did not choose to “throttle”, and always insisted on the road of independent research and development technology innovation. Presumably this is also the reason why Huawei can be the world’s number one in 5G technology.