Huawei loses key 5G network customer as SoftBank turns to Nokia and Ericsson in Japan
- SoftBank named Nokia as a strategic partner for its 5G roll-out and Ericsson as a supplier of radio access network equipment
- Huawei, which together with ZTE was a 4G vendor for the Japanese company, wasn’t selected despite taking part in earlier 5G trials
SoftBank Group’s Japanese telecoms unit has selected Nokia and Ericsson as vendors for its next-generation wireless network, excluding long-time supplier Huawei Technologies.
SoftBank named Nokia as a strategic partner for its 5G roll-out and Ericsson as a supplier of radio access network equipment, the companies said in separate releases. Huawei, which together with ZTE was a 4G vendor for the Japanese company, was not selected despite taking part in earlier 5G trials. SoftBank declined further comment.
US President Donald Trump’s administration has targeted Huawei for months, first encouraging allies to ban the Chinese company’s equipment from their networks and then putting Huawei on an export blacklist that prohibits it from buying American software and components.
Australia and New Zealand have prohibited Chinese gear from their networks, while Japan has said it will exclude equipment with security risks without making an official decision on Huawei. Japanese media have reported the country’s top three carriers – NTT Docomo, SoftBank and KDDI – will shun Huawei and ZTE.
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“You can also expect Docomo and KDDI to follow suit,’’ said Masahiko Ishino, an analyst at Tokai Tokyo Research Centre. “So SoftBank isn’t going to be at a cost disadvantage.’’
The phone companies are also scrapping plans to sell Huawei handsets as the impact of a US supply ban spreads. The Chinese company did not immediately respond to a request for comment.
Britain’s BT Group announced plans to remove Huawei gear from the core of its mobile network soon after the head of British foreign intelligence agency MI6 said the UK warned about the risks of using Chinese equipment. Taiwan already bans Chinese telecoms equipment.
At an earnings briefing in February, SoftBank Group Chief Executive Officer Masayoshi Son said it would cost about 5 billion yen (US$46 million) to replace existing Huawei gear in its network. At the time, Son said the company was considering all options for 5G equipment.
