“Africa & Latin America, it’s all Huawei”: End-to-end manufacturing drives the cost down

A rival tells me how hard it is to compete with Huawei because they manufacture so many products. “We had a good opportunity at one customer. Our software is just right for them.

“They wanted to buy a complete system. We bundled our software with $4 million of equipment and bid aggressively at $7 million. Huawei came in with a bid of $4 million for hardware and software combined. They manufacture their own servers at a much lower cost than he could buy servers.

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Euro telcos back Huawei

“You really need a global, open vendor equipment market, which is needed for operators to be able to pursue a multi-vendor strategy,” ETNO’s Maarit Palovirta asserts. ETNO speaks in Brussels for giant telcos like Deutsche Telekom. Like most policy types, she rarely says things directly. It’s clear “open vendor equipment” is meant to address Huawei.

A reporter for <a major newspaper> just told me the carriers support Huawei so strongly because the service has been excellent. That’s what I hear from all the tech people, especially in Europe.

Ten years ago, Huawei had to cut prices to win initial market share. That’s no longer necessary. Nokia said it actually underbid Huawei in China. The Washington Post still gets that wrong.

Palovirta really does need to rethink some of her other comments. With no new use cases developing, there’s no reason to think 5G will have an interesting economic impact. As Dean Bubley and Deutsche Telekom have pointed out, almost everything claimed for industrial 5G works fine in 4G or Wi-Fi.

Separately, the Africans and most Latin Americans continue to choose Huawei.

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