Two days ago, the Canadian side officially announced that Huawei and ZTE will be excluded from the country’s 5G network. The installed 5G equipment must be removed within two years. The 4G equipment involving these two companies will also be fully implemented by the end of 2027 stop using.
Many netizens are both regretful and very angry about this result. However, for Huawei and ZTE, such an outcome should have been expected long ago. As early as two years ago, when local operators chose 5G network equipment manufacturers, they only considered Nokia and Ericsson. In fact, Huawei and ZTE were already excluded at that time, but they did not say it.
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Therefore, Huawei has not focused its attention on these almost hopeless markets for a long time, but, as Ren Zhengfei has always advocated, strives to serve customers who are willing to let Huawei serve, and strives for more market opportunities with strength and sincerity. In addition to the four major domestic operators, there are also many operators in Asian, African and South American countries, who have always been staunch supporters of Huawei.
Kung fu pays off, the north is not bright and the south is bright. Recently, good news came from Huawei 5G again, and it won another key order in overseas markets. It is also an order that has greatly boosted confidence in Huawei’s 5G overseas market in the past two years.
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According to news from 5G professional public account angmobile, Brazilian mobile communication network operator Brisanet has identified Huawei as its 5G network equipment supplier and paid Huawei more than 300 million yuan for 5G equipment. Before that, Huawei had already shipped the first batch of 5G base station equipment to the operator.
For Huawei, this is undoubtedly a key order for delivering help in a timely manner. In particular, Brazil has been wavering on whether to exclude Huawei’s 5G. This time, it has finally made up its mind, which is more strategic for the recovery and development of Huawei’s 5G overseas market.
Why does this operator insist on choosing Huawei?
First of all, what is important is the leading edge of Huawei’s equipment and technology. Judging from the tests and feedback of domestic and foreign operators before Huawei’s 5G was suppressed, Huawei’s 5G equipment and network solutions are the best, and no so-called security problems have been found so far.
Moreover, despite the extreme suppression of Huawei’s 5G in the past two years, Huawei still maintains the world’s largest number of 5G standard essential patent families. With the support of Huawei’s higher R&D investment year by year, this leading edge may continue to expand.
Second, Huawei’s 5G equipment has a cost advantage and is cost-effective. It is precisely because of the emergence of Huawei that the high prices of communication equipment such as Ericsson and Nokia have been pulled down to a certain extent. Huawei has also taken advantage of this cost advantage to sit on the position of the largest communication equipment supplier in the world. In today’s 5G network layout, the use of Huawei’s 5G equipment still has a great cost advantage.
Moreover, Huawei is about to start charging 5G patent fees. In the past, because Huawei has a huge mobile phone business, it can cross-license the communication patents of Apple and Qualcomm, and cooperate with many operators, so it is not too demanding on patent issues.
The situation is different now. 5G is being suppressed in overseas markets. Huawei will definitely take up the “weapon” to protect intellectual property rights and defend its own legitimate interests. It was previously revealed that Verizon was required to pay Huawei nearly $1 billion in various licensing fees, and this was just the beginning. These operators choose to support Huawei, which can also save a fortune in patent fees.
Third, Huawei 5G can be rapidly deployed. The competition of 5G is not only related to the market structure of operators, but also related to the competition of various countries in the information field. These operators have already fallen behind in 5G network layout. Choosing Huawei equipment will not only have the opportunity to catch up, reduce deployment time, but also reduce costs.
Of course, although Huawei’s 5G key order is not large, it will undoubtedly have a positive impact on the maintenance and expansion of its overseas market. As the local foreign media commented, it has been unbearable, and follow-up orders will be more and more.
First of all, Brazil is originally a potential big communication market, with a large area and a lot of people, but the economy in many places is sluggish, and operators are relatively short of money. As a positive direction to boost the economy and the communication market, 5G is an inevitable trend. Without investment, Huawei is almost the best choice. After Brisanet, Huawei will have more and more opportunities for 5G in the future.
In addition, this order also has a demonstration effect, which will not only prompt other local operators to make up their minds early, but even this demonstration effect will extend to other regions. Those operators who urgently need to make breakthroughs in 5G and speed up the deployment, but are struggling with capital investment, and those countries and operators that are still swaying and undecided, may strive to use Huawei as a supplier of 5G equipment.
In short, there are bans and liberalization. After being restricted for 3 years, Huawei has not only survived, but also maintained its position in some overseas 5G markets. It has also begun to take new orders and see new hope. After Huawei 5G won the key order in overseas markets, it is believed that Huawei 5G will gradually usher in improvement in overseas markets.