Huawei’s 5G Rollout Is Expected To Give The Company A Revenue Uplift

Despite its dispute with the US government, the Chinese telecoms Company expects to roll-out 5G wireless networks which would contribute to the firm’s revenue starting from next year when China launches the service.

Huawei was placed on an entity list by Washington which accused the company of espionage. The US government encouraged its allies including south Korea and Japan to do the same to the Chinese company. However, the telecoms firm said on Wednesday that despite the setback, the company has secured over 50 contracts for 5G installation. 

Even though the roll-out is accelerating in many parts of Asia, the company believes that it might still need to be patient before the 5G project will contribute a sizable share to the company’s revenue.

“We have a clearer picture by mid-next year because by then the first batch of 5G commercial roll-outs in China will reach a certain phase,” Ken Hu told reporters during a conference hosted by the company adding that Huawei has signed a total of 60 commercial contracts.

China wishes to roll-out 5G services in over 50 cites, including countries like South Korea and the United States which have already started the service to foster the internet of things like self-drive automobiles and autonomous drones.

Since Washington placed Huawei on an entity list in May, the company has enjoyed massive patronage from its home market. The US government in May placed Huawei on an entity list forbidding it from having business dealings with suppliers in the US due to security concerns. The Trump led administration alleges that Huawei has ties with the military and with Beijing, a claim that Huawei continuously debunks.

Huawei says Washington is abusing its power to prevent its industry leadership to benefit US companies.

Ren Zhengfei, Huawei founder and CEO told the Economist magazine that he was open to selling the firm’s 5G technology including patents, code and blueprint to resolve the existing trade war for a one-off charge.

“If the proposal gets implemented, it will on one hand support more competition in 5G across the global supply chain, and as such competition is beneficial to consumers and users and also contributes and users and also contributes to the industry,” Ren said.

This could help alleviate the security concerns. However, the existing issue with the US is beyond a security challenge. It’s more of a supremacy battle, like a titan’s challenge.

Despite the existing uncertainties as to whether Google’s Android will be open to Huawei’s handsets, the smartphone maker will launch a new high-end mobile phone on Thursday.  In preparation for the worst hit, the smartphone maker launched its own operating system, called Harmony to replace its reliance on Google’s Android, but said however, that it would still retain Android for its handsets.