TECH

Nokia can destroy Huawei

Nokia has become Huawei's biggest competitor in the global 5G market, the next frontier of Internet connectivity. The Finnish company announced earlier this week that it has signed 42 commercial deals to provide 5G, the same number as the Chinese rival had disclosed. The difference is in the speed of the business: according to research firm Forrester, Nokia has closed a new contract per week since March, while Huawei took months to reach the same brand.
US pressure on Allied countries to hamper negotiations with Huawei was singled out by analysts as the main reason for China's slowdown. Since the beginning of the year Washington has made a public campaign accusing the company of espionage for Beijing.
Last month President Donald Trump placed Huawei on a list of companies that require special authorization to do business with the United States. The move was a blow to restricting US companies from providing equipment, chips and services to China.
"As the 5G supply chain is so global, US stocks are having a broad impact on suppliers and customers of its infrastructure and smartphones, forcing everyone involved to make choices that they would not do and on a tight schedule," analysts said. Eurasia Group.
Huawei is encountering barriers even in former allies. Last week, SoftBank, a Japanese billionaire investment fund, said it will use Nokia and Ericson's 5Gs instead of Huawei, which already provides a 4G connection.
"If Huawei's ability to sell and support its network equipment to operators in certain parts of the world is hampered, as the company is impeded in the United States, Ericsson and Nokia are likely to benefit," said Fitch Ratings analysts in note. Mundophone