US legislators are proposing to allocate $1 billion in subsidies to rip and replace Huawei gear in wireless networks. The word “replace” pricked ears up – Nokia and Ericsson raced to center stage to present their own 5G alternatives.
The Senate Commerce Committee’s hearing called 5G supply chain security invited executives from Nokia and Ericsson. As the largest competitor in the equipment market for 5G, the companies presented why the US should trust them instead.
Security head for Ericsson’s Network Product Solutions said his company’s products are the best in the world. It was also willing to keeping up manufacturing demand for its product to fuel US 5G networks.
Meanwhile, chief technology officer for Nokia in the American regions Michael Murphy said the company is on par with Huawei.
The 5G Supply Chain Security: Threats and Solutions hearing took place on March 4 at 10 AM ET. Nokia and Ericsson were the main speakers for the hearing.
Hence, it was to examine the security and integrity of the telecommunications supply chain.
The hearing was held to examine the security and integrity of the telecommunications supply chain. The Senate Committee on Commerce, Science, and Transportation also said it aims to secure networks from exploitation into 5G.
Witnesses for the hearing include Bowell, Nokia’s Rick Corker, Competitive Carriers Association’s CEO Steven Berry, and James Lewis. Lewis is the SVP of the Center for Strategic and International Studies.
The hearing follows accusations by the US government that Huawei can access global networks with backdoors intended for law enforcement.
Washington DC is currently in the works with how to secure the country’s leadership in 5G without including Huawei. The Chinese equipment giant stands as the world’s leading supplier of 5G equipment.
Economic Giants vs. Huawei
America’s biggest problem with Huawei is its close relationship with the Chinese government. Critics believe the company allows Beijing to spy on companies and officials.
President Donald Trump issued an executive order to ban new Huawei gear from US communications networks last May.
The Federal Communications Commission voted to cut off subsidiaries to rural wireless carriers from possible national security risks. Congress then passed bi-partisan legislation to fund equipment replacements from said risks.
In December, the House passed the Secure and Trusted Communications Network Act, which the Senate passed unanimously last week. Senate Commerce is awaiting President Trump’s signature.
The legislation bans the use of federal funds to buy equipment posed as national security threats including Huawei and ZTE. In addition to that, they will fund $1 billion to telecom providers to replace Chinese firms for “trusted providers.”
Additionally, the UK Prime Minister Boris Johnson approved Huawei for 5G with conditions. The equipment giant isn’t allowed to build core parts of the UK’s 5G networks with a market share of 35%.
In January, the European Union allowed higher-risk vendors for 5G with similar restrictions.
US Secretary of State Mike Pompeo revisited the UK to consider banning Huawei altogether because it creates “real risk.”
Australia also banned Huawei and ZTE’s 5G equipment from the region in August 2018.