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Nairaland Forum / Science/Technology / Phones / Huawei’s Troubles Are A Big Opportunity For Ericsson And Nokia (16662 Views)
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Huawei’s Troubles Are A Big Opportunity For Ericsson And Nokia by JayKayMaybachz(m): 7:31pm On Jun 20, 2019 |
The Chinese supplier’s supremacy is being challenged by its Nordic rivals. Over the past two decades, China’s Huawei Technologies Co. has come to dominate the global telecom equipment market, winning contracts with a mix of sophisticated technology and attractive prices. Its rise squeezed Europe’s Nokia Oyj and Ericsson AB, which responded by cutting jobs and making acquisitions. Now, with Huawei at the center of a U.S.-China trade war, the tide is turning. Nokia and Ericsson—fierce rivals themselves—have recently wrested notable long-term deals from Huawei to build 5G wireless networks, to enable everything from autonomous cars to robot surgery. Analysts say more could come their way as Huawei grapples with a U.S. export ban and restrictions from other governments concerned that its equipment could enable Chinese espionage. “Huawei will, for the foreseeable future, face a broader cloud of suspicion,” said John Butler, an analyst at Bloomberg Intelligence in New York. “Nokia and Ericsson are well positioned to benefit.” In May, the European companies both won 5G contracts from SoftBank Group Corp.’s Japanese telecom unit, replacing Huawei and Chinese peer ZTE Corp. Ericsson signed a similar pact in March with Denmark’s biggest phone company, TDC A/S, which had worked with Huawei since 2013 to modernize and manage its network. Other carriers, expecting government curbs on Huawei, have started removing its equipment from sensitive parts of their systems. BT Group Plc is taking Huawei out of its network core, and Vodafone Group Plc has suspended core equipment purchases from Huawei for its European networks. Deutsche Telekom AG, which has Huawei throughout its 4G system, is re-evaluating its purchasing strategy. As dozens of phone companies—including those in Canada, Germany and France—plan to choose 5G suppliers in the coming months, Cisco Systems Inc. and Samsung Electronics Co. are also vying for deals. But the key beneficiaries of Huawei’s difficulties are likely to be the two Europeans, which compete directly with the Chinese company in supplying radio-access network equipment. Since last year, the Trump administration has pushed allies to bar Huawei from 5G, citing risks about state spying—allegations the company has denied. The move in May to block Huawei’s access to U.S. suppliers escalated the campaign. The company’s founder, Ren Zhengfei, now predicts the U.S. sanctions will cut its revenue by $30 billion over the coming two years. Outside the U.S., security concerns have led Australia, Japan and Taiwan to bar Huawei from 5G systems. The Chinese company also risks losing meaningful work in Europe and emerging markets where countries could follow with their own limits, according to Bloomberg Intelligence. https://www.bloomberg.com/amp/news/articles/2019-06-19/huawei-s-troubles-are-a-big-opportunity-for-ericsson-and-nokia 4 Likes 2 Shares
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Re: Huawei’s Troubles Are A Big Opportunity For Ericsson And Nokia by JayKayMaybachz(m): 7:35pm On Jun 20, 2019 |
Publicly, executives from Nokia and Ericsson have been careful not to come off as critical of Huawei. Both manufacture in China and sell gear to Chinese phone carriers, and Nokia has a big research and development presence there. Nokia says it has already been forced to shift some of its supply chain away from China to reduce the impact of tariffs imposed by the Trump administration. Ericsson is “first with 5G,” after building high-speed networks for companies such as AT&T Inc., Swisscom AG in Switzerland and Australia’s Telstra Corp., said Chief Technology Officer Erik Ekudden. “You see that in some markets that we are attracting more customers.” Nokia is winning 5G deals “quite handsomely,” Chief Executive Officer Rajeev Suri told Bloomberg TV on June 10. While Suri said more carriers are likely to swap out Huawei gear in countries that have announced restrictions, the situation is less clear in Europe. “We don’t know yet the impact of specific operator plans,” he said in an interview. “We also don’t know where this geopolitical thing will end up.” Nokia and Ericsson are Europe’s final survivors of a merciless winnowing of more than a half-dozen telecom equipment providers. Bloated costs, a cyclical marketplace, cash-strapped customers, and the relentless rise of Huawei—aided by access to generous Chinese state financing—helped push the likes of Canada’s Nortel Networks Corp. and Germany’s Siemens AG out of the industry. Nokia paid some $2 billion in 2013 to buy Siemens out of a joint venture established to compete against Ericsson and Huawei. Then in 2015, it spent another almost $18 billion acquiring Alcatel-Lucent to broaden its product offering after pushing through more than 25,000 job cuts in the preceding three years. Still, Huawei’s share of the $33 billion of sales in the global mobile infrastructure market surged to 31% in 2018 from 13% in 2010, IHS Markit data show. Huawei, despite its troubles, remains a potent rival. Many phone companies in Europe deem its base stations, switches and routers technologically superior. Fully excluding Huawei and ZTE from 5G would raise radio-access network costs for European phone companies by 40%, or 55 billion euros ($62 billion), the GSMA industry group predicts in an unpublished report seen by Bloomberg. Nokia and Ericsson would have to almost double production to absorb Huawei and ZTE’s business in Europe and could struggle to meet demand, the GSMA report says. Both Nokia and Ericsson are working to make it easier for carriers to switch. Nokia has developed what it calls a “thin layer” of its 4G technology to connect to a new 5G system, allowing a carrier to avoid a wholesale swap of another supplier’s equipment. Ericsson also has a solution to allow a carrier to swap out only a portion of existing infrastructure, and says it can make some areas work side-by-side with Ericsson’s 5G gear. Nokia and Ericsson can agree on one thing: Claims of Huawei’s technological superiority are overblown. They note that they’re involved in the latest networks in the U.S., where carriers are rolling out 5G faster than the Europeans. “We compete quite favorably with Huawei,” Suri said, “with or without the current security concerns.” 4 Likes 4 Shares
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Re: Huawei’s Troubles Are A Big Opportunity For Ericsson And Nokia by Dandsome: 9:37pm On Jun 20, 2019 |
Okay 2 Likes |
Re: Huawei’s Troubles Are A Big Opportunity For Ericsson And Nokia by DanZenithh(m): 9:37pm On Jun 20, 2019 |
Ok |
Re: Huawei’s Troubles Are A Big Opportunity For Ericsson And Nokia by Nobody: 9:38pm On Jun 20, 2019 |
Edited
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Re: Huawei’s Troubles Are A Big Opportunity For Ericsson And Nokia by Steady259(m): 9:38pm On Jun 20, 2019 |
Nice one. But leeme book space. 2 Likes |
Re: Huawei’s Troubles Are A Big Opportunity For Ericsson And Nokia by Nobody: 9:39pm On Jun 20, 2019 |
Re: Huawei’s Troubles Are A Big Opportunity For Ericsson And Nokia by seuncyber(m): 9:40pm On Jun 20, 2019 |
On the fence |
Re: Huawei’s Troubles Are A Big Opportunity For Ericsson And Nokia by martineverest(m): 9:42pm On Jun 20, 2019 |
not only them, Samsung,HTC and LG will benefit in the mobile sector 3 Likes |
Re: Huawei’s Troubles Are A Big Opportunity For Ericsson And Nokia by ponziponzi(m): 9:42pm On Jun 20, 2019 |
lilbest4: Samsung ke? Just keep quiet if you don’t know what the OP is talking about. Or better still read slowly. Did you see sign of Samsung in the plot? 23 Likes 4 Shares |
Re: Huawei’s Troubles Are A Big Opportunity For Ericsson And Nokia by UncleJudax(m): 9:45pm On Jun 20, 2019 |
lilbest4:Read well. This is not about phones. Ericson and Siemens dont make phones anymore, but still make money. 12 Likes 3 Shares |
Re: Huawei’s Troubles Are A Big Opportunity For Ericsson And Nokia by ABCthings: 9:45pm On Jun 20, 2019 |
I'm surprised some people still thinks Huawei is all about phone... Anyway let the best lead! #TeamOnTheFence What can we do sef? 2 Likes 1 Share |
Re: Huawei’s Troubles Are A Big Opportunity For Ericsson And Nokia by UncleJudax(m): 9:46pm On Jun 20, 2019 |
lilbest4:Wireless radio technologies are different from smartphones. Some companies don't even want to make phones but components. Examples are Qualcomm, ARM, Corning, Leica ... 10 Likes 1 Share |
Re: Huawei’s Troubles Are A Big Opportunity For Ericsson And Nokia by Delivar(m): 9:46pm On Jun 20, 2019 |
China is unstoppable. All these things are just temporary challenges. The success graph chart is never a rising straight line. It goes down and comes up higher later on. 7 Likes 1 Share |
Re: Huawei’s Troubles Are A Big Opportunity For Ericsson And Nokia by PECON1(m): 9:49pm On Jun 20, 2019 |
this topic will not ganer much discussion since it's not about Regina Daniels, cleavage barring girls. 20 Likes 1 Share |
Re: Huawei’s Troubles Are A Big Opportunity For Ericsson And Nokia by Nobody: 9:50pm On Jun 20, 2019 |
UncleJudax:Yea I understand but I didn't read the article because I normally don't take Huawei news seriously these days I see them as mostly Western propaganda 2 Likes |
Re: Huawei’s Troubles Are A Big Opportunity For Ericsson And Nokia by ABCthings: 9:50pm On Jun 20, 2019 |
Delivar:yeah like China cares about you.. 22 Likes 2 Shares |
Re: Huawei’s Troubles Are A Big Opportunity For Ericsson And Nokia by UncleJudax(m): 9:56pm On Jun 20, 2019 |
lilbest4:It is a struggle for superiority. The US do not want to continue "helping" Chinese growth since China is now quite competitive. Something will have to give though 8 Likes 1 Share |
Re: Huawei’s Troubles Are A Big Opportunity For Ericsson And Nokia by zoedew: 9:57pm On Jun 20, 2019 |
Only the neophyte will allow Huawei near its sensitive equipment. It’s as sure as daylight after night that Chinese State authorities will access same at will. The Communist Party will ensure that. It is Supreme in all things. With the Chinese business ethics simply don’t exist. 5 Likes 2 Shares |
Re: Huawei’s Troubles Are A Big Opportunity For Ericsson And Nokia by Nobody: 10:03pm On Jun 20, 2019 |
Funny report from bloomberg. Hauwei is the only 5G vendor that has end-to-end solutions across board at minimum cost with less equipment swap. Not just the solutions hauwei is the only company that had publicly tested and deployed 5G with public access... . Other companies have only tested it in the lab. 2 Likes 1 Share |
Re: Huawei’s Troubles Are A Big Opportunity For Ericsson And Nokia by Cletus77(m): 10:11pm On Jun 20, 2019 |
New from Bloomberg, based in New York in US I won't be surprised if this is another western propaganda |
Re: Huawei’s Troubles Are A Big Opportunity For Ericsson And Nokia by blackaxe78: 10:12pm On Jun 20, 2019 |
WinningSun: Where are you generating your news from? 2 Likes 1 Share |
Re: Huawei’s Troubles Are A Big Opportunity For Ericsson And Nokia by DuBLINGreenb(m): 10:16pm On Jun 20, 2019 |
Huawei's troubles are an opportunity for Huawei |
Re: Huawei’s Troubles Are A Big Opportunity For Ericsson And Nokia by tuzle(m): 10:16pm On Jun 20, 2019 |
If u read the article and u didnt understand a thing raise your hands up 2 Likes |
Re: Huawei’s Troubles Are A Big Opportunity For Ericsson And Nokia by Onyenna(m): 10:33pm On Jun 20, 2019 |
Okay |
Re: Huawei’s Troubles Are A Big Opportunity For Ericsson And Nokia by Onyenna(m): 10:33pm On Jun 20, 2019 |
JayKayMaybachz: Okay |
Re: Huawei’s Troubles Are A Big Opportunity For Ericsson And Nokia by Onyenna(m): 10:34pm On Jun 20, 2019 |
JayKayMaybachz: Okay |
Re: Huawei’s Troubles Are A Big Opportunity For Ericsson And Nokia by drakeli: 10:46pm On Jun 20, 2019 |
Even Techno will take its own share |
Re: Huawei’s Troubles Are A Big Opportunity For Ericsson And Nokia by fikiman7000(m): 11:03pm On Jun 20, 2019 |
Just what i read on CNN but some nairalanders are trying to write off my point 1 Like |
Re: Huawei’s Troubles Are A Big Opportunity For Ericsson And Nokia by fikiman7000(m): 11:06pm On Jun 20, 2019 |
JayKayMaybachz:Thanks for this,exactly what i read on CNN,but people won't understand cos they think CNN is always biased,i bet they don't listen to international news or read their articles at the best sites |
Re: Huawei’s Troubles Are A Big Opportunity For Ericsson And Nokia by pacespot(m): 11:20pm On Jun 20, 2019 |
I was meaningfully reading this piece until I got to the point that Taiwan (a subsidiary of China) will bar Huawei from supplying it 5G network. This is just a propaganda from a western media, all these Asian countries will take the side of China should US escalate the trade war beyond this: Taiwan, Korea, India, Japan, even Australia and New Zealand will have no choice but to support China. That is one of the reasons the US is skeptical in going to trade war fully with China. 2 Likes |
Re: Huawei’s Troubles Are A Big Opportunity For Ericsson And Nokia by drakeli: 11:40pm On Jun 20, 2019 |
pacespot:Taiwan is not a subsidiary of China. China sees Taiwan as part of her territory. But Taiwan sees otherwise. Taiwan is a nation of its own. China only trying annexation of Taiwan. Taiwan hates China the same way Hong Kong hates China even though Hong Kong has been annexed by China: US has diplomatic relations with Taiwan the same way it does with china. Taiwan is a US ally. They have their own government independent of China. All those countries you mentioned are US allies . They all see China as a bully too in south East Asian 10 Likes 3 Shares |
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