The tussle between Huawei and the United States shows no signs of slowing down. They have been at each other’s throat for a long time now since the US accused Huawei of being a spy for the Chinese government.
Anyhow, this has had a negative effect on Huawei’s sales especially when it comes to 5G trials. The US has also started pressurizing its allies to stay away from Huawei products including network equipment for 5G.
As a result, Huawei has shifted its focus to the cash-strapped Southeast Asian nations which include, Pakistan, India, Bangladesh, and Sri Lanka. Where it has well-reputed and positioned markets in Pakistan, Bangladesh, and Sri Lanka, Huawei has to mitigate India’s concerns of the company being a Chinese spy.
Huawei is trying hard to go forward with its 5G trials and make it available to the consumers at low cost as soon as possible. Huawei’s Southeast Asian spokesperson told the Nikkei Asian Review,
Go digital, not political, is a choice that serves the interests of all stakeholders, we will try our best to complete the trial for customers and work together with industry partners to push forward the 5G ecosystem.
After the US pressured its allies to not use Huawei services and products, the Chinese tech giant saw a decline of 1.3 percent in its sales, but the Southeast Asian region is a treasure trove for Huawei which provided an increase of $105 billion in 2018.
According to the Indian head of industry intelligence at CyberMedia Research, Prabhu Ram, Huawei will be allowed to conduct 5G trials once the government is done mitigating all the security issues. On the other hand, in the other targeted countries, the company is in a much stronger position.
Sri Lanka and Bangladesh have no security concerns whatsoever and have allowed the 5G trials. The positive alliance of Beijing and Pakistan in the past few years have proved to be very fruitful for Huawei and they have established a strong presence in the Pakistani market already. In the coming years, these targeted countries will bring an expected revenue of $1.2 trillion to the country.
Pakistan, India and Sri Lanka are expected to launch 5G services at the end of 2020 while Bangladesh is expected to launch the services somewhere in 2021. In a statement, Huawei said,
In the past decades, Huawei has carried out extensive and intensive cooperation with governments and operators, and we keep bringing innovative, leading, secure and reliable products to all countries and help them build the most advanced and secure connection services.
However, for a successful launch of 5G in Pakistan, an attractive and low tariff is the key according to the head of the Karachi based Topline Securities Investors’ Advisory Mohammed Suhail.