According to new information from Reuters, Huawei is in the early stages of negotiating licensing of its patents and 5G technologies to US companies. The vice president of the manufacturer, Vincent Pang confirms these negotiations.
Although he did not disclose the names of potential operators involved in the negotiations, Pang said they are still at a very early stage of the negotiations. It appears that those operators want both long-term agreements as well as a direct purchase.
Possible Huawei Equipment Purchase Dislikes Donald Trump Government
Huawei CEO Ren Zhengfei was the first to suggest that access to Huawei’s patents, licenses and equipment could be agreed through a single transaction. However, the US government views this hypothesis as very dangerous.
One official said that the idea of seeing mobile operators take control of all Huawei equipment and software is unrealistic. This is because there may be bugs, which for operators will be impossible to determine their existence. This would make them even more vulnerable.
While not confirming the existence of any agreement, Pang recalled that even with a single transaction, the costs of maintaining and developing 5G networks would be extremely costly for companies.
US carriers are running out of options for 5G networks
In addition to the problems created by Huawei. Donald Trump’s government measures are also having a big impact on US companies. After the ‘damage’ caused to companies selling hardware to Huawei, operators are now facing the new wave of problems.
Huawei has invested many millions over the past decade to develop its 5G networks and expand its hardware network worldwide. Currently, the United States has no 5G network provider and alternatives are totally unviable.
The alternatives from Europe has been considered, but the offers from Ericsson and Nokia are simply too expensive.