In recent times, Telefonica Deutschland—Germany’s one of the major mobile carriers—selected Huawei and Nokia to develop its 5G network. 5G refers to latest-generation mobile networks that assure super-fast data speed and low latency—which is a short period of time between the data being requested and it reaching its destination. This move is a potential rebuff to the U.S. administration that has been campaigning for its associates to keep the Chinese telecommunications gear players out of their 5G networks. The U.S. maintains that Huawei poses a security threat as its equipment can be utilized for spying by China, while the Shenzhen-based company has frequently denied this allegation.
Countries have presented mixed views about Huawei. Australia and Japan have effectively debarred the company from their respective 5G networks. In the meantime, the U.K. has not yet made a final decision. In October, the German administration decided it will not leave out Huawei from its 5G networks. As an alternative, it presented a draft proposal for safety guidelines when the 5G equipment is considered. It could mean that gears from suppliers need to be certified. Telefonica Deutschland stated it was waiting for the administrative approval. While China has already shifted to 5G networks and some of the U.S. carriers have implemented the technology, Europe lagging behind.
Similarly, Huawei was in news lately for reporting a 13% surge in Irish profits. The profits at the main Irish subsidiary of Huawei in 2018 increased by 13% (approximately €4.8 Million). New accounts registered by Huawei (Ireland) showed that pre-tax profits increased following revenues surged by 26% to €119.4 Million from €94.77 Million. The revenues were spurred by the launch of two latest smartphone products. As per to the directors’ report, the firm in 2018 “achieved remarkable performance and noteworthy growth in business scale.”