Dave quoted about Huawei pricing

Ken Hu said adding Huawei to the bidding in Australia would bring down prices. COMMSDay printed this that I said “Adding Huawei to the bidding often brings down prices 10-25%. I consulted on a deal nearly a decade ago where they bid about 30% lower. Everybody bids more aggressively when they get competition. But Huawei no longer has to bid so low. No one in the industry any longer doubts that Huawei products are comparable to the best. Every deal in telecom is different and bid privately, so no one can give a definitive answer.”

Ken Hu faces the press

Ken Hu made a courageous move facing a dozen international reporters, some of whom are hostile. He gave a frank, professional presentation and answered all questions. His English is fluent and he came off well. Here’s a transcript.

From Huawei, in full: Amid intense international media coverage and reports of challenges in a number of markets, Rotating Chairman Ken Hu held a press conference with leading global media at the new campus in Dongguan on Tuesday, December 18. R&D labs showcasing materials developed for 5G and an independent cybersecurity lab were opened for the first time to media, signaling greater openness. Attending were 22 newspapers, broadcasters and trade publications from US, Europe and Asia. They included the Financial Times, CNN, CNBC, Reuters, Fortune and Nikkei.
Mr Hu delivered strong messages of confidence in Huawei’s business growth and prospects, citing the trust of hundreds of network operators, nearly half of the Fortune 500 companies and hundreds of millions of consumers.

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Nokia, Ericsson, and Samsung ban could cripple U.S. 5G (Satire)

Donald Trump tweeted, “All three are massively involved in upgrading networks in Syria, Iran & Cuba, our enemies. We must ban them from the U.S.” Trump discovered that Ericsson is working with ETECSA on Campo Proyecto in Cuba. Ericsson & Nokia both have large, active teams in Syria and Iran. Samsung supplies almost half the cell phones in Iran. Most Nokia wireless gear is made in China in a joint venture 50% owned by the Chinese government

With this move, all five companies with 5G networks cannot sell in the U.S.

“Ericsson bragged about a $B sale to China Mobile just a few days after we banned them from the U.S. Just like Germany’s gas deal with Russia, this means they are under control. 5G bragging rights are important, but not as important as U.S. power around the world.”

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Meng presentation

This is the supposed “smoking gun” presented by the Americans as proof of a conspiracy to provide hundreds of millions to Iran. From The South China Morning Post. SCMP has the other 16 slides, an ordinary, dull corporate presentation that says very little. 

I am not a lawyer. It appears to be very weak evidence that would prove little in an unbiased courtroom. It was ridiculous to make an international incident out of it.

On the other hand, U.S. law allows prosecutions for “conspiracy” and other “crimes” on very little evidence. It was designed to prosecute the Mafia but now is used in many other areas. 

Dave’s letter published by the South China Morning Post

The DC discussion about ZTE was profoundly uninformed. So I wrote this note.

Thank you for your article, “China’s long march for the soul of the nation’s digital future” (May 26). It offers important information about China’s effort in processor chips.

In my field, telecommunications, China has already become a leader. Recently, both Huawei and Qualcomm released chips for mobile phones supporting a download speed of two gigabits per second. They demonstrated the same quality of engineering. Massive MIMO, a key part of 5G, was invented in New Jersey but ZTE and Huawei were the first to market it. They were more than a year ahead of the West.

This should surprise no one. For a decade, whenever I have visited electronic engineers at places like Stanford University, many of those I have met are from China. I recently reported on research at China’s Tsinghua and Southeast universities.

Some in Washington have the false belief that other countries cannot advance without American technology. That leads them to make very bad decisions. I learn from China and I know my Chinese friends learn from the best in America. Dave Burstein, New York

Other opinion: Competitors have conflict of interest in security role

“It has been known that some telecom vendors are sitting in the network security advisory board of certain national security agencies to exclude competing vendors, citing national security concerns to benefit themselves.

They spread fear, uncertainty and doubt to politicians and these agencies without any supporting evidence. Operators (and countries) should do an independent technical evaluation and decide for themselves.”
Anonymous because of the source.  This comment was inspired by a government security agency advisor employed by a Huawei competitor.

Alcatel and Nokia have been prominent in the U.S. campaign against Huawei.

I don’t necessarily agree.

All 3 Japanese & Deutsche Telekom join the Americans

The U.S. boycott is growing far faster than anyone expected and now looks to cut Huawei sales by US$2-3 billion per year. This is significant even to a company doing US$100 billion in sales this year. There is pressure on India, Italy, and Canada; In all cases, the telcos are unhappy because Huawei is important to them, but resistance may be futile. 

Deutsche Telekom and Softbank want the government to approve the T-Mobile/Sprint merger, a very bad deal for consumers. They are particularly subject to pressure.

DT and Softbank backing away from Huawei is consistent with a behind the scenes deal with the U.S. security interests.  Depending on the assumptions, approval of the deal is worth $10 billion to US$20 billion to the companies. I have absolutely no direct data.

I’ve been close enough to U.S. policy to know that “national security” overrides everything else. If that’s the deal, the Justice Department and the FCC would go along.  I first thought this could be a special case.

When NTT DOCOMO and KDDI  joined, I had to revise my thinking. The Japanese government made the decision, presumably with behind the scenes conversations with the Americans. Relations with China are crucial to Japan, but the U.S. nuclear umbrella is even more important. 

Softbank, NTT DOCOMO, and KDDI spend about US$10 billion on capex each year. Only some of that is equipment and only some of the equipment comes from Huawei. The total Huawei will lose is probably over US$1 billion.

BT & others fought back against the China boycott

Two weeks ago, BT was fighting back against the Huawei boycott. The Security Forces have since prevailed. The cost to Britain will be in the US$billions. Here, from Fast Net.news

The U.S. security agencies are currently pressing England and Germany to cut off Huawei, which everyone in the industry believes would be a very expensive move.  BT is smart enough not to take on MI5 and GCHQ directly, but would have to spend many billions more if it lost Huawei and ZTE as suppliers. Update 11/28 New Zealand, one of the Five Eyes working together since World War II, has now cut Huawei out of the 5G plans.

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Trump tweet could kill extradition

The Canadian Justice Minister can refuse extradition if the claim has a political motive. This sounds like it does:

“If I think it’s good for the country, if I think it’s good for what will be certainly the largest trade deal ever made — which is a very important thing — what’s good for national security — I would certainly intervene if I thought it was necessary.”

An experiment in reporting

I’ve lived through what Americans call the Vietnam War, the Cold War, and the Iraq War. The Huawei War is only about commerce, but like all wars will extract a high price from both sides. I’m finding so much news I created this site.

I’ve reported about Huawei since 2004, when they were still unknown in the West. Paul Reynolds of British Telecom told me they were doing exceptional things. They now are twice the size of any other telecom vendor.

They are extremely competitive, remarkably hardworking, and very, very good at what they do. “No one is perfect,” the butler said, and neither are any companies this size. On balance, they have been at least as honourable as peers in the West.  

I have a major conflict of interest. Huawei has paid my expenses to events and contracted with the research company I do some work with. I will do my best to do accurate reporting. 

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