Friday, 22 February, 2019

Huawei dealt new blow as Vodafone stops buying core network gear

Vodafone 'pauses' use of Huawei equipment over security concerns Huawei's Next Phone Will Have 5G — And Might Be Foldable
Lloyd Bates | 27 January, 2019, 15:29

Huawei also introduced its 5G customer premises equipment, dubbed the 5G CPE Pro, which the company said hit 3.2Gbps on a live network test, and when using Wi-Fi 6, can deliver 4.8Gbps.

Nick Read, Vodafone's chief executive, said during the business' earning call on Friday that Vodafone was communicating with security agencies in the United Kingdom, but said that he chose to pause the installation of new hardware in Vodafone's core network due to "general noise" about the subject.

The world's second largest mobile operator said Friday that it is pausing the installation of Huawei equipment inits core networks in Europe, given the political uncertainty surrounding the Chinese telecoms firm.

Sales of Huawei smartphones and other consumer products showed "no influence" from Western security warnings and rose more than 50 percent a year ago, Yu told reporters.

The telecoms equipment market is dominated by three companies - Huawei, Finland's Nokia (NOK) and Sweden's Ericsson (ERIC).

Chinese tech giant Huawei announced plans Wednesday for a next-generation smartphone that will use its own technology instead of US components, maneuvering to gain a competitive edge and sidestep complaints it is a security risk.

Huawei also launched the 5G CPR Pro, a 5G router that uses wifi 6 technology to claim speeds of nearly 5 Gbps.

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Read insisted there would not be significant costs should it decide to replace all Huawei 5G equipment, but said the process would take several years to resolve.

A spokesman for Huawei, which become the world's biggest telecoms equipment maker earlier this decade despite being shut out of the USA market, said it had been a long-term strategic partner to Vodafone since 2007. Washington also says Chinese technology plans violate Beijing's market-opening obligations and might erode USA industrial leadership.

Vodafone is putting Huawei on hold.

"It is not about pressure from governments; it is the noise level throughout Europe".

The company's Chief Financial Officer Margherita Della Valle said the performance improvements would start to show in the top line after the current quarter.

Some carriers kept Chinese suppliers out of the core even before the latest global crackdown on Huawei because it's the part of the network considered the most critical by security officials.

"At Huawei, we never do these kinds of things", he said.

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