The chief executive of Nokia has warned that stricter regulation targeting Huawei will damage the entire industry.
Rajeev Suri directed his remarks at European governments currently deciding whether, and to what extent, to allow Huawei equipment into 5G networks.
Speaking with the Financial Times, Suri cautioned:
“What you don’t want is a cumbersome process involving more cost in the supply chain. Let’s be careful. No more red tape, no more bureaucracy and no more extra cost.”
Suri also warned against disrupting global supply chains and recalled a 2010 decision by the Indian government to ban certain Chinese equipment imports, a move that had serious economic consequences.
Country-by-country regulatory differences will add complexity. 5G networks rely heavily on software that requires frequent updates; requiring regulatory approval for each jurisdiction and customising software for different national rules will slow deployments and could leave some economies less competitive.
The United States has been urging allies to exclude Huawei from their networks on national security grounds, at times using strong diplomatic pressure.
Nokia appears to be benefiting from the uncertainty surrounding Huawei when it comes to winning 5G contracts. Last month, Nokia director Federico Guillén reported increased interest from operators in countries still debating the use of Chinese equipment.
The Finnish vendor has won 43 commercial 5G contracts to date, placing it ahead of rivals including Huawei and Ericsson. Nokia has strengthened its position with end-to-end offerings: roughly 49 percent of its orders are now for complete end-to-end solutions, up from about 35 percent a year earlier.
A recent easing in trade tensions between the US and China led to Huawei being removed from a US government “entity list” that had restricted American firms from doing business with the company without prior approval. Vendors such as Nokia will be watching closely in the hope that reduced tensions mean less pressure from the US to push new regulatory measures.
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