Telecom equipment manufacturer Nokia announced earlier this week that it has signed on 42 5G commercial deals across the world. This puts it on par with Chinese telecom bigwig Huawei that has made heavy investments in development of wireless technology that manages the new digital economy. Though tagged as world’s largest telecom equipment manufacturer, Huawei is facing tough time in its international business operations due to pressure from United States that is leading a strong campaign against its business by filing several lawsuits and issuing a ban against it while pressurizing its allies to ban the company from selling its equipment for their 5G networks.
United States has stated that Huawei equipment poses security risk and it would at any point of time be forced by Chinese government to spy on its international customers though the claim has been denied by Huawei. It confirmed early this week that it has signed up 42 international contracts for setting up 5G networks across Middle East, Europe and Asia. The latest restriction by US government has barred local companies from doing any business with Huawei so it cannot by both hardware and software from US companies for its operations.
This export ban has forced suppliers that provide crucial materials to Huawei and other wireless companies located in UK and Japan which had also led to delay in launch of the firm’s smartphones. The firm is also facing roadblocks in sales of its telecom equipment as long-time customer Softbank announced that it has selected Nokia and Ericsson for its 5G networks. Nokia and Ericsson are long term business rivals of Huawei and this step by US to eradicate the Chinese firm from 5G networks in Europe and US will be helpful for them say analysts. Despite these headwinds Huawei announced 40 new 5G deals by March but since then Nokia has been signing a new contract every week.