Jun 17, 2019 (China Knowledge) - China’s largest telecommunications operator China Mobile has awarded half of its 5G network equipment contracts to Huawei Technologies, providing much need respite for the latter as the company’s position in overseas markets gets rocked by a US decision to add it into a trade blacklist.
Huawei will now be providing 49% of the MME/SGSN equipment and 54% of the SAE-GW/GGSN equipment which are two types of core network equipment for the operation of ultra-fast 5G networks to China Mobile. Ericsson, Nokia and ZTE Corp have managed to secure 34%, 12% and 5% of MME/SGSN equipment and 34%, 9% and 3% of SAE-GW/GGSN orders respectively.
According to China Mobile, the company had come to the decision after considering factors such as price, product quality and customer service before coming to its decision. In addition, Huawei has also been one of its major long-term suppliers and the two companies had enjoyed a good relationship in the past.
On June 6th, China had awarded commercial 5G licenses to the country’s three telecommunications network operators and the country’s cable network giant, signaling new major investments into the sector amid an ongoing trade war with the US.
The awarding of the 5G licenses come after the US added Huawei to a trade blacklist which bans it from buying key US hardware and software. However, the Chinese telecoms giant has said that it is still fully prepared for the roll-out of commercial 5G networks after China granted the licenses.
Currently, the three state-owned telecommunications operators in China, China Mobile, China Telecom and China Unicom all purchase equipment from both domestic and foreign supplier including Nokia and Ericsson. However, technological advances made by Huawei and ZTE Corp have allowed them two secure greater market shares in recent times.
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