Is China Rigging a 5G Test Against Ericsson and Nokia?
Experts checking for security weakness in 5G equipment
Huawei struggling to win 5G contracts
Huawei competes with Ericsson and Nokia in the market for telecommunications equipment, and currently, the companies are pursuing contracts for 5G equipment. Last year, Ericsson and Nokia picked up 5G contracts worth $3.5 billion each from US operator T-Mobile (TMUS), which is in the process of merging with its rival Sprint (S) in a $26 billion deal.
华为在电信设备市场上与爱立信和诺基亚竞争，目前这三家公司都在争取5G设备的合同。去年，爱立信和诺基亚分别从美国运营商T-Mobile (TMUS)获得了价值35亿美元的5G合同，后者正与竞争对手Sprint (S)进行价值260亿美元的合并。
Ericsson and Nokia have continued to clinch 5G deals, with Canada’s top operator, Rogers Communications (RCI), selecting Ericsson as its 5G supplier. Last month, Nokia also secured a 5G contract from Japanese operator SoftBank (SFTBF). However, Huawei is having a difficult time in the race for 5G contracts, as the US has labeled it as a national security risk and is now campaigning to persuade its allies to lock Huawei out of their 5G markets.
Ericsson’s network revenue jumped 10%
Ericsson derives most of its revenue from network equipment sales. The company’s revenue from its networks business rose 10% year-over-year to $3.6 billion in the first quarter.
Nokia says it’s won 42 commercial 5G contracts
Ericsson (ERIC) seems to have fallen behind its major competitors in the race for 5G contracts. Nokia (NOK), one of Ericsson’s top competitors in the telecommunications equipment market, recently touted its 5G contract wins, saying it had won 42 commercial 5G contracts as of June 3, 2019.
Ericsson hasn’t disclosed its total 5G contract wins, but the company publicly announced 19 commercial 5G contracts as of June 3, placing it behind Nokia with 22 publicly announced 5G orders. According to a Reuters report, Huawei has won an estimated 40 commercial 5G contracts.
Ericsson and Nokia have both won 5G contracts from US operators AT&T (T), T-Mobile (TMUS), and US Cellular (USM). Last year, T-Mobile handed Ericsson and Nokia 5G contracts worth $3.5 billion each. Ericsson and Nokia have also both won 5G contracts from Japanese operator SoftBank (SFTBF). Ericsson also recently disclosed that Sprint (S) had used its equipment for its 5G network, which launched in several markets in the US last month. Sprint, which is controlled by SoftBank, is seeking to merge with T-Mobile, and the two have pledged to make a massive investment in 5G network development if they’re allowed to combine.
爱立信和诺基亚都从美国运营商AT&T、T- mobile和US Cellula那里获得了5G合同。去年，T-Mobile分别与爱立信和诺基亚签署了价值35亿美元的5G合同。爱立信和诺基亚也都赢得了日本运营商软银的5G合同。爱立信最近还披露，Sprint已将其设备用于其5G网络，该网络上月在美国多个市场推出。软银控股的Sprint正寻求与T-Mobile合并，两家公司已承诺，如果获准合并，将在5G网络开发方面大举投资。
Ericsson’s revenue rose 7.0%
Huawei won big in the 4G rollout, but Ericsson and Nokia are keen to chip away at its market share in the 5G space. In what looks like an unexpected advantage for Ericsson and Nokia in their competition with Huawei for 5G contracts, the Chinese company is struggling to sell its 5G products in the Western market amid an exclusion campaign led by the US.
Ericsson’s total revenue rose 13% year-over-year to $5.2 billion in the first quarter.
In UK.the test speed of 5G on Huawei equipment has proved the Chinese company has unbeatable record.
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