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Huawei Bets on Next Year’s 5G Roll-out, Says It Will Boost Revenue

Huawei Technologies expects the launch of next-gen 5G wireless networks to start contributing to the agency’s income from 2020 when China releases services, the firm’s deputy chairman said Wednesday.

The Chinese telecoms tools giant has stated that it has secured over 50 5G commercial deals even as it fights accusations from the United States and its allies that its networks are automobiles for Chinese espionage.

Ken Hu said that while the roll-out was stimulating, especially in Asia, the Chinese telecom gear-maker believed that it would still have to “wait for a while before 5G contributes a sizeable share to income”.

China’s big three state telcos are racing to launch 5G services in more than 50 cities this year, following nations like South Korea and the USA which have already begun the service that guarantees to support new technologies like autonomous driving.

Huawei’s home market has become more important to the company since Washington in May blocked U.S. companies trading with it due to national security matters, hitting the firm’s international business.

The telecom gear-maker denies the allegations and says Washington is trying to restrict its market leadership to benefit U.S. firms.

Huawei founder and CEO Ren Zhengfei last week said in order to resolve U.S. issues, he’s open to selling his firm’s 5G technology – along with patents, code, blueprints, production know-how – to Western companies for a one-off payment.

Huawei said that Ren’s suggestion was not complicated and that a new player may help mitigate security concerns.

Huawei in August stated that while the impact of the U.S. curbs was weaker than previously expected, it will nonetheless push its smartphone business’ revenue lower by some $10 billion this year.

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