Huawei "in discussion" over a 5G license with an American company

Huawei "in discussion" over a 5G license with an American company

A Huawei executive reportedly confirmed that the company had been in talks with US companies for a license to use its 5G technology in the country.

The Chinese mobile giant has been effectively shut out of the US market for some time, but formal legislation barring US companies from doing business with Huawei has limited its ability to supply US technology.

The blacklist is based on national security reasons, the equipment made by Huawei, affected by the United States, could be used for espionage. Huawei categorically and frequently denied any accusation of wrongdoing.

Huawei 5G

Due to this suspicion, Huawei's only customer base in the United States is among rural carriers. Many of them use the company's kit because it is more affordable than competitors Ericsson and Huawei.

Last month, Huawei founder Ren Zhengfei touted the idea of ​​licensing its 5G technology to third parties. Vincent Pang confirmed that preliminary talks had already been held with US companies.

"Some companies talk to us, but it would take a long journey to finalize everything," he said.

Reuters indicates that the possibility of a unique agreement and a long-term association was discussed. Although the previous course of action provided for the provision of technology, patents and source code without further obligation, it would require the licensee to invest billions of dollars in research and development to update the technology.

Huawei has spent billions of dollars on 5G and it's hard to know which US companies would have the same skills, if any. In any case, the US government may not be convinced that a license agreement will alleviate its security concerns.

Last week at the Huawei Global Mobile Broadband Forum (MBBF) in Zurich, Huawei reaffirmed its belief that the entire mobile industry should come together to solve the security issue and deal with the debate in a more technological way. that politics

Via Reuters