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Huawei's 5G Licensing Offer Is Pitched at US Companies, Says Founder

Robert Clark
News Analysis
Robert Clark
9/26/2019

Huawei boss Ren Zhengfei says his offer to license the company's 5G technologies is aimed at a US supplier.

He said the proposal was intended as an exclusive arrangement with a company that had enough scale and expertise to be competitive.

Speaking at a company event in Shenzhen Thursday, Ren said he preferred it to be a US company because Europe, Japan and South Korea all had vendors with 5G capabilities.

He said Huawei was prepared to license patents and technology, including source code, hardware, manufacturing know-how and even chipset design if needed.

"We can set a new starting line for Japan, the EU and the US," he said.

The 74-year-old CEO and founder said he was not concerned that he would be creating a new competitor.

"First thing, we will earn revenue from licensing which can allow us to invest further in developing new products.

"When we nurture competition, it will turn into a driver for our workforce. If the competitor is strong enough to beat us I would be very happy to see that, because it would make the world a better one."

To date the US, which placed Huawei on an "entity list" in April, has not responded to Ren's offer.

Ren said despite the ban on US components Huawei would build 1.5 million 5G basestations in the first half of next year.

He says he expected the vendor would be able to supply carrier customers "without relying on the US."

Will Zhang, head of Huawei corporate strategy, told Light Reading the pace of the 5G buildout was well ahead of expectations.

"No country wants to fall behind, no operator wants to fall behind," he said.


Want to know more about 5G? Check out our dedicated 5G content channel here on
Light Reading.


Huawei, the world's biggest network equipment vendor, was "extremely confident" of being able to fulfill its orders.

He said the run-in period ahead of the ban ends this month. Huawei would build 5,000 basestations in October and massively ramp up production in 2020.

Zhang said it would be too expensive to lay up huge inventories during the run-in period, although the company has been building inventory ahead of a possible cut in supply for several years.

In contrast with optimism over network equipment, Ren was unable to give an assurance on a handset operating system to replace Android.

He said the company was working with Google but had not yet found an alternative if, as is expected, the ban on Android remains.

Ren said the company had not decided whether the Huawei-developed Harmony OS -- initially built for IoT purposes -- would be deployed on Huawei devices.

— Robert Clark, contributing editor, special to Light Reading

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CharlesIrizarry
CharlesIrizarry
9/27/2019 | 10:35:41 AM
Huawei already dispenses with US components in 5G base stations
Huawei is the world's largest manufacturer of telecommunications equipment. In May this year, the United States blacklisted a Chinese company, banning US manufacturers from supplying Huawei products and services. The pretext was the fear that Huawei equipment could be used by Beijing for espionage. The company has consistently denied such allegations, but sanctions blocked its access to US technology.

Huawei some time ago announced that it was ready to license its 5G developments to American manufacturers, since it was not afraid of competition.
Huawei plans to cooperate with a japanese company(more here) and then deliveries will reach 600,000 units, and next year about 1.5 million base stations will be shipped.
Glfrost
Glfrost
9/26/2019 | 12:56:22 PM
Does Huawei Really Own the Intellectual Property?
As we prepare to serve again Huawei and TenCent for IP theft this question arises as we look to target US and EU companies doing business with both. The development of a lot of the Tech Huawei claims started, in some cases, as far back as 1999. Basestation Chips and 5G low latency elements were developed for a distributed low latency infrastructure as well as transaction/messaging elements in WeChat.
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