As anyone watching Huawei Technologies’ change of fortunes knows by now, the telecoms gear company has a suite of next-gen technologies and yet faces a near-existential question on their deployment. In a cyclical telecom networks industry, 5G is the beacon of growth for giant equipment makers. Beams from that beacon arose from Chengdu in western China last week where Huawei hosted Indian journalists.
Telecom game theory: The cost of an Indian clampdown on Huawei
The Chinese telecom equipment manufacturer saw its Indian revenue grow 55% in FY19. But as a possible clampdown looms, Huawei is looking to protect its interests, warning that banning it could delay India’s 5G rollout. With 5G only set to be introduced in a few years anyway, what’s the actual cost of India action against Huawei?
Even as its business is visibly slowing in other markets, Huawei grew at impressive 55.5% to Rs 12,884 crore ($1.79 billion) in FY19 in India. Profits jumped 213%
Nearly 80% of this growth is from networks business, today hobbled by US-China trade war. Both these countries are lobbying hard in India
Per Huawei’s FOMO narrative, if India bans 5G, the rollout will be delayed by 3 years
But it’s more about ensuring Huawei’s gradual march in India