Who’s afraid of Huawei? Where Asia stands on China’s 5G tech giant
While much of Southeast Asia has embraced Huawei as the preferred provider of 5G communications equipment, Japan and South Korea seem to be hedging their bets, and India’s implementation of the technology is still a long way off.
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Japan
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Japan has found itself at odds with its larger neighbor in recent months over whose equipment will lay the groundwork for the country’s roll out of 5G – the fifth generation of mobile communications technology that has been lauded for its potential to reshape global communications.
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In December, Tokyo moved to ban telecoms equipment judged to pose a risk to national security, effectively excluding Huawei and ZTE from the government’s 5G procurement process and echoing similar moves made by Australia and New Zealand amid pressure from the United States, which has been vocal in its appeals to allies to ban the Chinese tech giant.
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Japan’s three largest mobile carriers have also excluded Chinese companies from their 5G base stations, according to Kyodo News.
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Chinese government officials have warned the restrictions will damage the bilateral relationship.
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The issue was repeatedly raised last weekend, when Japan’s Foreign Minister Taro Kono met his counterpart Wang Yi in Beijing. Wang urged Japan to take “concrete action” to improve ties between the two nations.
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Huawei already supplies equipment used by Japanese telecom firms KDDI Corp and NTT Docomo in existing networks.
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Kazuo Yukawa, a professor of international relations at Tokyo’s Asia University, said Japan might be looking to repair its relationship with China ahead of June’s G20 summit in Osaka. “China has recently attacked the vulnerability of US allies, and Japan may be looking to fend off [Chinese pressure as the G20 nears].”
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Chinese President Xi Jinping’s attendance at the summit will mark the first visit to Japan by a Chinese head of state since 2010.
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“The achievements of Chinese enterprises in the field of 5G are achieved through market-oriented operation and on the basis of fair competition,” Chinese Foreign Ministry spokesman Lu Kang said last week. “We hope that these companies should not be discriminated against.”
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South Korea
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Korean telecoms giant KT rolled out the nation’s first 5G network for the Pyeongchang Olympics in February last year without Huawei’s help.
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South Korea seeks to account for 15% of the global 5G market by 2026, and the government has announced plans to jointly invest US$29 billion along with the private sector in a public-private partnership for 5G infrastructure. This month, Samsung introduced the world’s first smartphone with built-in 5G technology, achieving the nation’s ambitions to be the first to launch a commercial 5G service. South Korean companies hold more than 2,000 patents for 5G technology, behind China’s 3,400.
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Min Won-ki, vice-minister in charge of science and information technology, said the government was providing support to telecoms operators to test the data security of 5G equipment. The government will also provide tax incentives for 5G tech and plans to create 13 test sites for the technology.
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South Korea’s two largest mobile carriers, SK Telecom and KT, have not used Huawei equipment in their initial 5G networks, though LG Uplus has incorporated the Chinese company’s technology in its network.
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The government has said that it is up to each individual firm to decide what equipment it uses, though officials have emphasized the importance of 5G equipment adhering to security standards.
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“5G is a core infrastructure which will kick off the fourth industrial revolution,” said Min. “Being a first mover in this sector provides us with the chance to set global standards.”
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India
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India, the world’s second-largest telecoms market by the number of subscribers, has traditionally been a laggard when it comes to adopting new technology. But the Indian government hopes the nation will not fall behind in the 5G race.
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Though regulators have pushed for spectrum auctions this year, major carriers in the country such as Vodafone Idea and Bharti Airtel have urged the government to push these back to 2020, citing a lack of clear business cases and compatible devices.
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Given its size, India is an attractive market for China’s telecoms companies, but the country has a track record of wariness towards Chinese gear.
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In 2010, the government blocked purchases of telecoms equipment from Chinese vendors, citing national security concerns. In 2014, it opened an investigation into allegations that Huawei had hacked into state-owned telecoms network Bharat Sanchar Nigam – claims that the Chinese company denied.
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While India is still deciding whether to allow Chinese equipment vendors to participate in the country’s 5G launch, it has invited Huawei to take part in 5G trials along with rivals Nokia, Ericsson and Samsung.
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Just 45% of India’s mobile phone users were connected to 3G or 4G networks as of February, according to data from the Telecom Regulatory Authority of India, meaning most of the country is still on 2G.
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“Mass adoption of 4G only happened at the end of 2016, and it hasn’t been a long time since then,” said Nikhil Batra, senior research manager in telecoms for IDC Asia-Pacific.
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In recent years, operators in India have invested tens of billions of dollars rolling out 4G networks and are unwilling to invest more in the 5G spectrum. Experts estimate that mass adoption of 5G in India might only occur in 2023 – three years after 5G is rolled out commercially elsewhere in the world.
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“The appetite for telcos in India right now is to milk as much as they can from their existing investments and that’s why they feel that 5G is not a necessity right now,” Batra said.
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Additional reporting by Park Chan-kyong
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