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Exclusive: Huawei Has First Talks with US Companies about Licensing 5G Platform



By Alexandra Alper

WASHINGTON (Reuters) – Huawei, a blacklisted Chinese telecommunications company, is currently in talks with some US telecommunications companies about licensing its 5G network technology, Huawei's Reuters said Friday ,

] Vincent Pang, the company's senior vice president and board director, said some companies had expressed an interest in a long-term business or a one-time transfer and did not want to name or quantify the companies.

"Some companies are talking to us, but it would take a long journey to really finish everything," Pang said during a visit to Washington this week. "They showed interest," he added, saying talks are only a few weeks old and not yet on a detailed level.

The US government feared that customers could be spied on with Huawei devices, convincing allies to banish them from their 5G networks. Huawei has repeatedly rejected the claim.

<p class = "canvas-atom canvas-text MB (1.0em) MB (0) – SM MT (0.8em) – SM" type = "text" content = "Currently there is no US 5G Providers, and European competitors Ericsson and Nokia are usually more expensive. "Data-reactid =" 27 "> Currently, there are no US 5G vendors and European competitors Ericsson and Nokia are usually more expensive.

In May, Huawei, the world's largest telecommunications equipment supplier, dropped a US blacklist of national security concerns prohibiting purchase of US-made parts without a special license.

Washington has also filed criminal charges against the company for bank fraud, US sanctions against Iran and theft of trade secrets, which Huawei denies.

Rules issued by the Department of Commerce earlier this month are expected to banish the company effectively from the US telecommunications supply chain.

The idea of ​​a one-time fee in exchange for access to Huawei's 5G patents, licenses, code and know-how was first reported last month by CEO and founder Ren Zhengfei in interviews with the New York Times and the Economist published. So far, however, it was not clear whether there was an interest on the part of US companies.

In an interview with Reuters, a US State Department official expressed skepticism about Ren's offer.

"It's just not realistic that airlines would do that and then manage all the software and hardware themselves," the person said. "If there are software bugs that are built into the original software, you can not necessarily say they're there, and they can be activated at any time, even if the software code is passed to mobile operators." the official added.

Pang in turn refused to predict whether a contract could be signed. However, he warned that the R & D investment required to continuously improve the platform following a one-time transfer from Huawei would be very costly for businesses.

Huawei has spent billions since 2009 to develop its 5G technology.

(Additional coverage by Ken Li and Karen Friefeld (edited by Chris Sanders and Sandra Maler)


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