Huawei and ZTE, two of the globally renowned telecom gear and technology providers, have had to suffer a lot of losses and missed opportunities because of being banned in multiple countries from doing business. While these companies are allowed to sell consumer products, they can’t do core telecom network business with the telecom service providers (TSPs) of many countries, including India, the US, and along with Europe. Much recently, even Canada had banned Huawei and ZTE from doing business related to the telecom gear on its grounds. The Government of Canada said that it is ensuring the long-term security of its people and intends to ban Huawei and ZTE products and services in Canada’s telecommunications systems.
Huawei and ZTE Provided Technology and Gear at Attractive Costs
Because of the scale at which these Chinese companies were doing business, they offered tech and services to the TSPs around the world at attractive prices, which helped the telecom companies in rolling out new networks at optimum costs and increasing margins. But due to China’s bad image and the alleged relations of Huawei and ZTE with the Chinese government, many major markets have turned these companies out of their door. India has also not included Huawei and ZTE on its trusted vendors’ list. Huawei and ZTE’s losses have been profits for European vendors, including Nokia and Ericsson. Both the companies have expanded their business in Europe as well as Asia. It is worth noting that no one has been able to prove that the ties between Huawei, ZTE and the Chinese government are real. But, at the same time, no one wants to take the risk of them being real. Indian telcos had relied on Huawei and ZTE for 2G, 3G, and 4G. But with 5G, none of the Chinese companies has been allowed to be a part of the trials, and it is likely that they are not going to be a part of India’s future in the telecom gear market.
