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Huawei warns the FCC that the Chinese trade wars could slow down 5G adoption in the U.S.

Huawei is trying to convince the U.S. government that Trump's trade wars with China might slow down 5G adoption on American soil.  (Source: GizChina)
Huawei is trying to convince the U.S. government that Trump's trade wars with China might slow down 5G adoption on American soil. (Source: GizChina)
Even though Huawei is certainly not the only 5G modem manufacturer on the market, the Chinese company submitted a new report to the U.S. FCC, in which it explains why the freshly launched Verizon 5G infrastructure would not be used by too many customers, as the 5G handheld costs may rise because of trade bans imposed by Trump.
Bogdan Solca,
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Huawei is one of the Chinese smartphone OEMs that is most affected by Trump's trade bans. The company was planning to enter the US market this year, but, the U.S. government is currently considering key Chinese OEMs a threat to national security, as all equipment manufactured in China could be riddled with backdoors that facilitate espionage.

Now that the 5G telecommunication infrastructures are being tested in several regions across the globe, it looks like the U.S. is ready to switch from 4G LTE to 5G. However, Huawei now argues that without the Chinese hardware (i.e. 5G modems), the adoption rate for the upgraded infrastructure would be considerably slower.

The US Federal Communications Commission (FCC) has received a new report, in which Huawei is explaining that 60% of its revenues is generated outside of China, as it provides communication devices for more than 500 operators in 170 countries, including a few smaller U.S. carriers. If the U.S. government continues to block Huawei and other Chinese manufacturers out of the U.S., the MSRP for new devices will constantly rise and consumers would be affected as well. In other words, U.S. may have a functional 5G network but there would not be too many users that could afford to use it.

This would also apply to Australia, a country that has recently banned Huawei for similar concerns. UK, on the other hand, considers Huawei a vital asset for the proliferation of the new 5G networks.

According to Huawei’s FCC filing, the Chinese company “urged the Commission to consider the substantial costs of the [proposals], in particular its impact on carriers in rural and remote areas, many of whom are attracted to Huawei as a result of Huawei’s commitment to affordable, quality products and attentive customer service. Furthermore, Huawei’s lack of presence in the US would raise prices, harm competition, hinder innovation, and ultimately delay 5G deployment.”

This delicate problem might benefit Qualcomm and Samsung, two companies that have already announced 5G modems, but do not rely on Chinese manufacturing.

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Bogdan Solca
Bogdan Solca - Senior Tech Writer - 1497 articles published on Notebookcheck since 2017
I first stepped into the wondrous IT&C world when I was around seven years old. I was instantly fascinated by computerized graphics, whether they were from games or 3D applications like 3D Max. I'm also an avid reader of science fiction, an astrophysics aficionado, and a crypto geek. I started writing PC-related articles for Softpedia and a few blogs back in 2006. I joined the Notebookcheck team in the summer of 2017 and am currently a senior tech writer mostly covering processor, GPU, and laptop news.
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> Notebook / Laptop Reviews and News > News > News Archive > Newsarchive 2018 10 > Huawei warns the FCC that the Chinese trade wars could slow down 5G adoption in the U.S.
Bogdan Solca, 2018-10- 5 (Update: 2018-10- 5)