Huawei Needs To License Its 5G Technology To US Firms

Huawei is barred from trading its 5G tech in the US, but that is not stopping it from making an effort to an end run around that challenge. Vincent Pang (Senior VP) claimed to the media that Huawei is in early talks to approve its 5G tech to companies in the US. The discussions are a few weeks old, but the unidentified companies have “displayed interest” in both one-time transfers and long-term deals. Pang would not forecast if Huawei might lock a deal, even though he claimed that any single-shot deal might be costly to develop and maintain.

Ren Zhengei (company founder) floated the chances of these deals earlier in September, but it was not clear whether anybody would be receptive at the time.

On the other hand, that is not actually the core issue. Huawei still resides on the Entity List of US Commerce Department, avoiding it from conducting business with US firms without explicit approval. A transfer deal or license can simply be believed as a similar violation, even if no physical products change hands. Politicians have been doubtful of Huawei and the chance that it may slip surveillance software of Chinese government into tools, and it may not matter whose tools that is.

It is not difficult to see why firms may warm up to the concept of a license. Present 5G systems are ruled by Nokia and Ericsson. This might allow companies in the US leap into 5G and provide more competition, even if they are technically lending from Huawei.

On a related note, the latest quarterly results of Huawei show that the firm is doing just well, in spite of current trade problems with the US. The Q3 income is up 24.4% as compared to last year in the same period, while the firm claims it has shipped over 185 Million handsets in the initial 3 quarters of this year, up 26% as compared to last year.

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