The ongoing problems of Chinese powerful telecom firm Huawei seems to be far from over as soon after the arrest and release of its CFO in Canada it has been told that its largest client Softbank is considering replacing Huawei equipment. While Huawei is striving hard to pioneer the introduction of 5G technology in the world, this decision of Softbank which manages Japan’s third largest wireless network could cause a major setback to its business interests. Softbank has not taken a final decision yet about review of Huawei equipment as the exercise would be both expensive and complex.
The Chinese telecom major has suffered several setbacks this year as US government has accused the firm of being a security threat to its interests and asked its partner nations to refrain from using their equipment in communication with US. Though Huawei denied these claims Japanese paper Nikkei claimed that Softbank has already decided to replace Huawei’ 4G equipment with hardware from other telecom equipment providers like Ericsson and Nokia. It also insisted that all telecom equipment for its 5G network will be sourced from European suppliers and not Huawei. Both long term partners have experimented in the past with 5G technology that the Japanese arm wants to introduce in 2020.
This confirmation for change of equipment by Softbank was given after Japanese government stated its decision to implement new procedures for official purchases of IT network equipment. It affirmed that this decision was made to prevent use of products that could introduce malicious functions in their hardware to enable cybercrimes like theft of data or service interruptions through ransom-ware. Some news agencies have stated that these new measures would effectively bar entry of Chinese equipment suppliers like Huawei and ZTE from government projects in Japan. Huawei has recently face rejections by several telecom groups across the world like British Telecom in UK and even in New Zealand and Australia as their governments have prevented use of Huawei equipment by service providers that are upgrading their networks to 5G.