Western telecom-equipment makers Nokia and Ericsson stand to gain if Chinese rival Huawei loses business after U.S. security claims
An Ericsson booth at Mobile World Congress Shanghai last year. U.S. pressure on Huawei has ramped up the competition between Ericsson and Nokia to pick up any business that falls away from the Chinese company. Photo: Qilai Shen/Bloomberg News By Parmy Olson Updated May 29, 2019 2:29 p.m. ET LONDON—As the U.S. continues its campaign against Huawei Technologies Co., the Chinese telecom-equipment maker’s two biggest rivals are battling each other to take advantage.
It isn’t clear how many of these swaps overall are coming at Huawei’s expense. “We have seen no significant impact on our 5G sales,” a spokesman for Huawei said, referring to U.S. government allegations that Huawei gear poses a national-security threat. The spokesman added that Huawei was disappointed to lose the Danish carrier, TDC A/S, after supplying the telecom company for 12 years.
Once on top of the industry, Ericsson and Nokia were hurt over the past decade by fierce competition from Huawei and smaller Chinese rivals. Meanwhile, carriers that had gorged on gear to build 4G—the mobile-network technology that replaced slower 3G—bought less new equipment once their buildouts were finished.Ericsson’s chief executive, Börje Ekholm, said mobile carriers had a “great opportunity” to earn money from 5G technology that would be “as important as roads and railways.
Analysts are looking at one particular subset of the telecom-gear industry to gauge any fallout: radio-access networking, or RAN, which includes much of the gear, including base stations and antennas, needed for 5G.
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