In the recent past, 5G technology realm has a primary monopoly of leading telcos such as Ericsson, Nokia and Huawei, resulting in a consolidated market value of over 80% of the total 5G base stations globally, with Huawei leading from the front.
This is majorly attributed to highly competitive pricing strategy as well as superlative quality of the networking solutions.
However, on the back of recent trade frictions between the US and china, the performance of China-based Huawei seems utterly dicey.
According to dominant speculations on the part of US intelligence, Huawei is assumed to be closely associated and influenced by Chinese military forces, thus amounting to full-fledged security vulnerability.
Following recent regulatory norms whereby the US has imposed restrictions upon US based companies in their bluechip trade with Huawei, several assumptions are rife that 5G companies in the US are also barring procurement of semiconductor devices from Huawei.
Several US allies are also expected to follow suit on similar lines. The most tangible and visible implications are widely present in Europe, leading to a recent ban set by Belgium National Security Council which has publicly denounced further adoption of Huawei based components and equipment.
Belgium has gone forward and imposed stringent restrictions on the use of Huawei based equipment for 5G capacity and usage in radio access network. Following these, countries such as Germany and the UK are also restricting the use of Huawei based components in their 5G network expansion projects.
Despite is legacy position in France and UK based telecom networks, Huawei Technologies has been pushed outside the business circle, rather abruptly.
Adding to this, the UK government has also confirmed its decision to ensure a systematic phase out of Huawei's business in the country.
Thus, it can be safely said that the Americas and EU are quickly ensuring severed business ties with China based telecom giant Huawei considering sharp rivalry with the Asian country.