Huawei hardware systems have a huge share in the current European 4G market. They hold up to 50% of European 4G network infrastructure. Thus, it becomes very obvious that this Chinese company will continue to lead the 5G segment as well. The next-gen ultra-fast 5G infrastructure requires a solid foundation which can be readily provided by Huawei because of existing synergies present in the 4G market. Another company taking this big opportunity away from Huawei seems a far-fetched idea.
But, the recent reports suggest that a move away from the Chinese brand might become a reality. European mobile operators are pondering if the South Korean giant, Samsung, can actually replace Huawei as the core supplier of 5G systems in Europe. Multiple reasons are behind this ideology. One of the most prominent reasons for this is Samsung’s commendable performance to complete a deal with U.S. mobile provider Verizon in September 2020. This deal is reportedly worth $6 billion. This positive news affected other global companies to look into Samsung’s progress. It is believed that Spain’s Telefonica and France’s Orange both have held formal communications with the South Korean giants.
From the very start, Samsung was not considered as a company that can pioneer the 5G market. But, thanks to the anti-china sentiments across the globe, global operators are looking at alternatives. The United States of America has levied huge sanctions on the Chinese tech giant and they might pile pressure on Europe to abandon Huawei’s 5G infrastructure. The US has come out multiple times and alleged that Huawei might be forced to leak the customer’s data to the Chinese government, though this allegation has been consistently refuted by the company. Both of these internal and external factors might play a significant role to push the 5G infrastructure towards Samsung.
The South Korean company might have a strong Network team but if their operators are not compatible with the existing 4G infrastructure, people may have to bear huge costs. This incompatibility might force the need for scrapping a large part of the existing 4G network and set-up a completely new one.
