Australia’s ban on Huawei could increase local 5G development costs, hurt Australian firms: experts

Source:Global Times Published: 2018/8/23 11:13:39

Australia's ban on Chinese telecoms equipment provider Huawei Technologies is a huge loss for Australian 5G development, as local companies may face higher costs in building and upgrading networks, Chinese experts said on Thursday.

Huawei's Australia affiliate said on its Twitter account on Thursday that it has been informed by the Australian government that Huawei and its home rival ZTE Corp have been banned from providing 5G technology in the country.

"This is an extremely disappointing result for consumers," Huawei said.

The ban on Chinese telecoms companies will lead to higher costs for building 5G networks in Australia, "which could be 30 percent higher," Xiang Ligang, chief executive of telecoms industry news site, told the Global Times.

In the past, four of the world's biggest tech companies — namely Huawei, ZTE, Ericsson and Nokia — competed against each other in the market, but the latter two firms usually delivered services with higher prices and management fees, the expert noted.

Outside of the US, Huawei is expected to be a major supplier of 5G radio and core network gear, according to a report released by British industry intelligence unit Ovum in June 2017. Although ZTE is performing well in China, it still lags behind Ericsson, Huawei and Nokia in other markets, the report noted.

Australia will see very slow progress in its 5G development now that it has blocked these Chinese companies, which is also a political gesture, Fu Liang, a Beijing-based telecoms industry expert, told the Global Times.

"It's not only about business. But it's still too early to say that Chinese companies will lose all their chances of tapping into the Australian market in the future," he said.

Huawei did not comment on the matter when contacted by the Global Times on Thursday morning.


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