Huawei in early talks with U.S. firms to license 5G platform
Huawei in early talks with U.S. firms to license 5G platform

Huawei Executive: Huawei in early talks with U.S. firms to license 5G platform

Blacklisted Chinese telecoms equipment giant Huawei is in early-stage talks with some U.S. telecoms companies about licensing its 5G network technology to them, a Huawei executive told Reuters on Friday.

Vincent Pang, senior vice president and board director at the company said some firms had expressed interest in both a long-term deal or a one-off transfer, declining to name or quantify the companies.

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“There are some companies talking to us, but it would take a long journey to really finalize everything,” Pang explained on a visit to Washington this week. “They have shown interest,” he added, saying conversations are only a couple of weeks old and not at a detailed level yet.

The U.S. government, fearing Huawei equipment could be used to spy on customers, has led a campaign to convince allies to bar it from their 5G networks. Huawei has repeatedly denied the claim.

Currently there are no U.S. 5G providers and European rivals Ericsson and Nokia  are generally more expensive.

Huawei in early talks with U.S. firms to license 5G platform
Huawei in early talks with U.S. firms to license 5G platform

In May, Huawei, the world’s largest telecoms equipment provider, was placed on a U.S. blacklist over national security concerns, banning it from buying American-made parts without a special license.

Washington also has brought criminal charges against the company, alleging bank fraud, violations of U.S. sanctions against Iran, and theft of trade secrets, which Huawei denies.

Rules that were due out from the Commerce Department earlier this month are expected to effectively ban the company from the U.S. telecoms supply chain.

The idea of a one-off fee in exchange for access to Huawei’s 5G patents, licenses, code and know-how was first floated by CEO and founder Ren Zhengfei in interviews with the New York Times and the Economist last month. But it was not previously clear whether there was any interest from U.S. companies.

It’s not hard to see why companies might warm up to the idea of a license. Current 5G networks are, outside of Huawei, dominated by Ericsson and Nokia. This would let American companies leap into 5G and offer more competition, even if they’re technically ‘borrowing’ from Huawei.

Also Read: Germany will not stop Huawei from its 5G networks

In an interview with Reuters last month, a State Department official expressed skepticism of Ren’s offer.

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