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If Rejecting Huawei and ZTE, It will Cost 42 Billion More to Build 5G in Europe

Source:Iris Liang Time:2019-6-10 9:21:03

According to a Reuters report on the 7th, the industry analysis report of the Global System for Mobile Communications (GSMA), which represents the interests of 750 mobile operators, shows that the ban on the purchase of communication equipment from Chinese suppliers will increase the cost of 5G networks in Europe by about 55 billion euros. (about 62 billion US dollars, 428.7 billion yuan), and will lead to the delay of the launch of the technology for about 18 months. The Chinese suppliers mentioned in the Reuters report, in addition to Huawei, also have ZTE. Excellent suppliers should have the characteristics to help customers reduce operating costs. Just like SEKO Machinery's high-speed stainless steel industrial welded pipe tube mill line, it has the characteristics of energy saving and improved weld quality while increasing production speed by 30%.
Reuters said the above-mentioned 55 billion euros valuation reflects the total ban on China's communications equipment suppliers Huawei and ZTE (ZTE) to bring additional costs to Europe's 5G network, and the two Chinese companies' market share in the EU A total of more than 40%. Reuters mentioned that Huawei's products, a Chinese communications equipment supplier, were widely purchased and used by European operators. The GSMA expressed concern about the consequences of a total ban on Huawei.

“Half of them (additional cost) will be attributed to the higher cost to European operators after the competitiveness of the communications equipment market has significantly weakened,” the industry report said. “Before upgrading to a 5G network, operators need to Replace the existing infrastructure."

The report also said that the ban on the purchase of communications equipment from Chinese companies will also delay the deployment of 5G technology for 18 months, and the technology will be used in a variety of areas, from autonomous vehicles to medical and logistics. The report said, "This delay will widen the 5G penetration gap between the EU and the US by 15 percentage points by 2025."

In May of this year, the US Department of Commerce announced that Huawei was included in the “physical list”, prompting global technology giants to cut off contact with the Chinese company. The United States repeatedly pressured European countries on the grounds of “security issues” and asked them to follow suit. In this regard, Huawei repeatedly denied that its equipment has security risks. Huawei said on June 6 that it has obtained 46 5G commercial contracts in 30 countries around the world. The shipment of 5G base stations exceeds 100,000, ranking first in the world.

Despite this, Huawei is still welcomed by many countries. Earlier this month, Huawei signed an agreement with MTS, Russia's largest mobile operator, to "develop 5G technology in 2019 and 2020 and pilot the fifth-generation network." On the 7th, MTS CEO Alexei Kornia said that Huawei is "fully qualified" to provide infrastructure for Russia's next-generation wireless network. On the same day, Brazilian Vice President Hamilton Moran also publicly stated that the Brazilian government will not rule out Huawei's operation of 5G mobile communication networks in the country.

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