In push to replace Huawei, rural US carriers look to Nokia and Ericsson
- Small carriers are looking for inexpensive alternative as Chinese telecoms firm becomes target in trade war between Washington and Beijing
- Switching vendors will not be easy, however, as Nokia and Ericsson will not match Huawei’s pricing
About a dozen rural US telecoms carriers that depend on Huawei for network gear are in discussions with its biggest rivals, Ericsson and Nokia, to replace their Chinese equipment, sources familiar with the matter said.
The carriers, which include Pine Belt in Alabama, and Union Wireless in Wyoming, are seeking discounted pricing and looking forward to government assistance but have yet to reach agreements, these sources said. Nokia and Ericsson declined to comment.
The talks are critical for small carriers that have relied on Huawei Technologies or ZTE for inexpensive, high-quality mobile network gear in recent years even as the big US telecoms companies shunned the Chinese firm.
The US government has labelled Huawei a security threat and effectively banned US companies from doing business with it.
But switching vendors will not be easy. Nokia and Ericsson, both of which have struggled financially in recent years, will not match Huawei’s pricing, analysts and company executives say.