Huawei may beat Samsung to 5G

While Samsung Electronics has become synonymous with technology in South Korea, a controversial rival could upstage it in the race to build fifth—generation wireless networks in its own backyard.

Huawei Technologies, the Chinese company slammed in the US Congress as a security threat, is in the running to supply equipment to all three of South Korea’s national mobile carriers. At stake: initial contracts that could be worth 10 trillion won ($9 billion).

As South Korea pushes to become the first nation to roll out 5G networks, suppliers from around the world are vying to sell switches, base stations and other gear needed to make them work. While Samsung is best known for its smartphones and memory chips, having its equipment shut out of the most advanced wireless networks in its homeland would be a setback for a company that has suffered a number of recent black—eyes.

Huawei has grown to become the largest network gear maker and is pushing deep into 5G technology, investing heavily in research and becoming one of the biggest holders of patents. Its prospects came into focus earlier this year when President Donald Trump blocked Broadcom from buying Qualcomm as the US cited risks that the deal could help the Chinese company take the lead in developing next— generation networks.

“Huawei has been aggressive and started development earlier than others,” Park Jin-hyo, executive vice president of SK Telecom, said in an interview.

“We are looking with an open stance and no bias whatsoever.”While aware of security concerns surrounding Huawei, Park said South Korea’s largest carrier is looking at other factors including technology and costs, adding the firm wouldn’t be considering the Shenzhen—based company if it fell short of global security standards.

SK Telecom and smaller rivals KT and LG Uplus have more than 56 million subscribers, a number greater than the country’s population of just 51 million.

Huawei is in the running to supply equipment to all three of South Korea’s national mobile carriers