TECH

China's communist government tries to pressure Brazil to accept its dubious 5G network infrastructure

Brazil may experience years of delay in implementing the 5G network, driving up telecommunications services to customers, if it succumbs to pressure from the United States to stop Huawei Technologies, said an executive at the Chinese manufacturer.
Donald Trump's government has been stepping up efforts to limit Huawei's role in the development of the new generation of high-speed network in Brazil, with Ambassador Todd Chapman citing the United States' willingness to finance the purchase of equipment from other suppliers in Brazil.
In June, President Jair Bolsonaro said that the implementation of 5G will have to address issues of national sovereignty, information and data security, as well as foreign policy.
China was the target of criticism by Bolsonaro before he took a less abrasive stance towards the second largest economy in the world when he assumed the presidency in 2019, although he remains a close ally of Trump.
Restricting Huawei's participation "will only exclusively delay Brazil, impacting infrastructure prices for operators, regional internet providers and consumers," said Marcelo Motta, director of cybersecurity and solutions at Huawei, in an interview with Reuters.
The Chinese company has consolidated its presence in the Brazilian market over the past 22 years, accounting for a significant part of the investments of operators in the country in telecommunications infrastructure.
"In places where there were restrictions for Huawei, we saw price increases in infrastructure for operators two to five times, often making business unfeasible," said the executive.
He noted that Brazil already faces the challenge of expanding the telecommunications infrastructure, and replacing the supplier will require operators to reinvest in equipment, rather than simply updating existing ones.
"Making this change is tinkering with a big hornet and operators would need more time and more money," said Motta, stressing that US accusations that Huawei's technology is vulnerable to China's spying are unfounded.
The largest telecommunications equipment manufacturer in the world has successfully conducted 5G tests with the main operators in Brazil - Telefônica Brasil; TIM Participações; Of course, from the América Móvil group; and Oi - and has been helping them to modernize their infrastructure before the long-awaited spectrum auction.
Initially scheduled for last March, the event was postponed due to concerns about interference with other services. The expectation now is that it will occur next year.
"We have a solution prepared to primarily use software to bring 5G to Brazil (on existing frequencies)", said the director of Huawei. "And as soon as the government brings the new frequencies, we can also use small hardware applications," he added.
Huawei, which globally invested about $ 4 billion in 5G between 2009 and 2019, plans to manufacture the new technology locally in one of its two production units. Currently, about 40% of the components offered in Brazil are already manufactured in Sorocaba (SP) and Manaus (AM).
The Chinese group saw some operating costs rise amid the coronavirus pandemic, mainly due to the increase in air transport with fewer flights in operation, Motta said, noting that the situation is not yet critical.
At the same time, measures of social isolation triggered by the pandemic boosted demand for Huawei products and services, as network traffic grew by an average of 50% in Brazil, reaching up to four times at the peak.
"Obviously, there was a great mobilization of us and our partners to guarantee uninterrupted support, including network expansion", he explained.

Mundophone