Application for 5G network in S.Korea is normal: Huawei

Chinese telecoms equipment maker Huawei Technologies’ application to supply equipment for South Korea’s fifth-generation (5G) network is part of the “normal bidding process” and “has not been disputed,” the company told the Global Times on Monday.

The comment followed South Korean media reports claiming that mobile carriers in the country are unsure about whether to consider Huawei for the business due to security issues.

The nation’s telecom companies plan to select suppliers of equipment for their 5G networks, and it’s believed they’ll make their final decisions in July and August, Yonhap News Agency reported on Monday.

“Huawei is a concern… We are at a crossroads when it comes to the decision, whether [to make it from the standpoint of ] the government or customers,” the Korea Herald reported, citing Park Jung-ho, CEO of South Korean mobile carrier SK Telecom.

Ma Jihua, an analyst with Beijing Daojing Consultant Co, told the Global Times on Monday that South Korean operators will certainly want to introduce Huawei’s equipment. Ma said that with Huawei’s core patents in 5G equipment, as well as its voice in the formulation of 5G standards, using the company’s equipment would no doubt cost less than purchasing equipment from other suppliers.

Samsung holds 45 percent of the Korean network market, with Nokia taking 30-32 percent, Ericsson 17 percent and Huawei 5-10 percent, data from the Korea Herald showed.

According to a report by the Xinhua News Agency, European operators such as Ericsson and Finland's Nokia admitted in 2017 that Europe had fallen behind.

“Actually, with its leading technology and comparatively lower costs, Huawei would be first choice for most countries that want to develop their 5G networks,” Ma said.

At this year’s Mobile World Congress held between February 26 and March 1 in Spain, Huawei presented what it claimed to be the world’s first commercial chipset that meets the standards of 5G networks. The company also reaped eight “Global Mobile Awards” at the congress, Xinhua reported.

“However, the communications equipment market has never been

fully market-oriented and will always be affected by many other factors, for example, politics,” Ma noted. Fu Liang, a Beijing-based telecom industry expert, told the Global Times on Monday that if Huawei is excluded from 5G business in South Korea, Koan mobile communications operators and customers will also be hurt. “Leading 5G equipment providers are limited... You can count them on one hand. A mobile carrier will choose two or three providers in order to create some competition and control costs in the domestic market. So if Huawei is excluded, companies in South Korean may pay more without getting better service,” Fu said. However, Fu noted that if Huawei wants to secure a place in the global 5G market, it’s important for the comany to win the Japanese, South Korean and European markets.