During a conference in Washington, the US Attorney General urged the United States and its allies to invest in alternatives to Huawei.
Huawei currently holds the largest market share of any global telecommunications vendor. Operators are frequently drawn to Huawei because its equipment is widely regarded as competitive on both performance and price.
“The Chinese are using every lever of power to expand their 5G market share around the globe,” Attorney General William Barr said.
The US government contends that Huawei is influenced by Beijing and therefore poses a potential national security threat to countries that deploy its equipment. In his remarks, Barr called for strengthened investment in rival firms to curb Huawei’s expanding presence in 5G networks.
“China is offering over $100 billion in incentives to finance customers’ purchases of its equipment. This allows Chinese suppliers to offer customers the ability to build their 5G networks with little or no upfront cost,” he said.
Barr advocated directing more financial resources to companies such as Nokia and Ericsson, which are commonly viewed as Western alternatives to Huawei’s market dominance.
“Putting our large market and financial muscle behind one or both of these firms would make them more formidable competitors,” Barr added.
Responses among US allies to calls for restricting Huawei equipment have varied. Australia has reaffirmed its ban on Huawei gear in national networks, while the United Kingdom has opted for a more nuanced approach, permitting Huawei equipment in a limited capacity.
The UK government decided Huawei may be used in no more than 35 percent of the access network that links devices and customer equipment to mobile masts. The company is barred from any critical infrastructure or sensitive locations, including nuclear sites and military bases.
Earlier in the month, US officials provided their British counterparts with a dossier outlining perceived risks associated with Huawei equipment. UK authorities said their decision followed an analysis by the National Cyber Security Centre, which produced a technical and security assessment intended to identify measures needed to protect the country’s digital infrastructure.
All four of the UK’s major mobile operators were already using Huawei equipment in parts of their networks. One operator, BT, estimated that implementing the UK government’s restrictions would cost approximately £500 million.
If calls from the US Attorney General gain traction, telecom operators may increasingly consider equipment from Western vendors when planning future network generations, including 6G.
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