When it comes to 5G technology, Huawei dominates the news cycle, and it hasn’t had the easiest year after allegations of espionage, and being caught up in the ongoing trade war between the US and China.
Many Western governments have consequently banned Huawei’s technology. But rather than sit on its laurels, Huawei is looking at other ways to profit from its new tech, which would bypass security concerns.
Selling 5G technology
But take a look at any 5G base station, and there’s a high likelihood that you’ll either see Huawei antennas, baseband units, or other tech installed, all of it crucial in the delivery of 5G. So what’s the answer to this seemingly intractable problem?
During a recent interview with The Economist (opens in new tab), Huawei CEO Ren Zhengfei claimed to have a solution, saying that the company is considering selling its 5G technology. It would be a one-off sale to competitors, and, potentially, other foreign governments.
This could include Australia who recently banned Huawei technology in August.
The deal would consist of a one-time fee that would give the buyer access to Huawei's "existing 5G patents, licences, codes, technological blueprints and production know-how".
As Huawei is such a leader in mobile technology, it’s easy to see why many competitors would be tempted to purchase it to get ahead, without the previous legislative and security concerns.
“5G represents speed”
Zhengfei went on to say that, "5G represents speed," and continued to reiterate, saying, "Countries that have speed will move forward rapidly. On the contrary, countries that give up speed and excellent connectivity technology may see economic slowdown."
It’s interesting to see Huawei take this route, but with many governments influenced by the US, and its ban of Huawei technology, it could be a smart move. And it could be the most profitable course of action. Zhengfei suggested that this could be the case, "A balanced distribution of interests is conducive to Huawei's survival".
As the US-China trade war continues and more bans against Huawei popping up, it could truly be the last resort for the company moving forward.