Huawei’s 5G base station’s status is challenged

China-US 5G Fighting Huawei’s 5G base station’s status is challenged, but may not lose

Huawei’s 5G base station’s status is challenged. The global supply of mobile communication base stations last year was 38.3 billion U.S. dollars, of which Huawei held 34.4%, far ahead of rivals Ericsson and Nokia, and firmly ranked as the global leader. Japanese media reported that Huawei’s market share may be hit by the United States’ complete blockade; however, China’s domestic demand for 5G base station construction is strong, and domestic demand has become an important force supporting Huawei’s market share.

The Nikkei Chinese website quoted statistics from the British research company Omdia showing that the global supply of mobile communication base stations in 2019 reached 38.3 billion US dollars, an increase of 12% over 2018. If we further analyze the proportion of enterprises, Huawei accounted for 34.4%, ranking first; Ericsson accounted for 24.1%, and Nokia (Nokia) accounted for 19.2%.

The market share of Huawei’s 5G base station was largely left behind Ericsson and Nokia

From this year to the current situation, reports pointed out that Huawei’s market share increased by 4.9% compared with last year, while Ericsson and Nokia decreased by 1.7 and 1.6% respectively, showing that Huawei’s performance is still strong.

However, the report mentioned that Huawei’s leading position may be challenged in 2020. The biggest influencing factor is the continued stepping up of Sino-US frictions, and the trend of excluding Huawei is strengthening worldwide.

The content of the report pointed out that as the United States has stepped up its containment of Huawei and requires allies of various countries to completely exclude Huawei equipment from the country’s 5G construction, Huawei is currently facing headwinds. At present, Britain and France have already stated that they will take restrictive measures on Huawei equipment.

However, the report also quoted the opinions of industry insiders and pointed out that Huawei has been actively constructing communication networks since 4G, supported by China’s domestic base station demand, and cost competitiveness has become an advantage. Although the international situation in 2020 is more severe than in 2019, China’s domestic demand for 5G base station construction is strong, so many comments still believe that Huawei can maintain a relatively high share.

The report added that Ericsson and Nokia have also sharpened their swords and prepared to compete for orders that originally belonged to Huawei. In addition, US startup Altiostar Networks, Japanese telecommunications company NTT and NEC have formed an alliance and will also join to compete for global communications infrastructure business. The outcome of this competition remains to be seen.

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Awais Nazar

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