A lot could be written about the trade war between the US and China. However, we are most interested in the doubts of US services regarding the use of Huawei devices by telecommunications companies to build mobile networks. The Chinese decided to do something about it and put forward an official letter to the Federal Communications Commission of the United States asking for the abolition of the current restrictions.
The largest US mobile network operators can not currently buy base stations and other infrastructure components from Huawei. However, smaller local operators who operate in rural areas can not use the universal service fund when purchasing equipment from a Chinese supplier. These restrictions were imposed due to the suspicion that Huawei’s equipment could be used by the Chinese government to spy on American citizens. So far, no one has proven any links between Huawei or ZTE and intelligence agencies in China. However, Americans, in the interest of national security, have decided to impose appropriate restrictions on Chinese telecommunications equipment suppliers.
Huawei wants American experts to check if their equipment is safe
The Federal Communications Commission acts as the regulator of the US telecommunications market. That’s why Huawei wants this organization to say whether US operators can use Chinese equipment or not. Huawei representatives point out that their company is one of the most important players on the mobile network market. Their shares in this segment amount to as much as 28%. In the case of Ericsson, it is 27%. However, Nokia has 23% of departments. Next are ZTE (13%) and Samsung (3%). However, this may change in the near future.
Currently, not only the United States has problems with trust in Chinese companies. Recently Australia has banned the supply of 5G base stations from Huawei and ZTE. This decision was also dictated by fears related to national security. This prohibition does not extend to existing LTE networks, as the Australian authorities have tools that guarantee the security of current technologies. However, 5G networks will be more complicated, which will not allow their effective control.
If Huawei succeeds and the Federal Communications Commission conducts research that confirms the lack of backdoors in the Chinese telecommunications devices software, then we can face a real revolution in the telecommunications market. Huawei is known as a much cheaper provider of base stations from Ericsson and Nokia. Therefore, operators may decide to cooperate, which in a few years would translate into specific savings and improvement of financial results.
Source: The Register