July 06, 2020
5G Rate Plans To Skyrocket Due To Global Governmental Crackdown On Huawei
(Reuters) - British Prime Minister Boris Johnson is expected to begin phasing out the use of Chinese tech giant Huawei’s technology in Britain’s 5G network as soon as this year, The Daily Telegraph reported on Saturday.
Officials are drawing up proposals to stop installing new Huawei Technologies [HWT.UL] equipment in the 5G network in as little as six months, and to speed up the removal of technology that is already in place, the newspaper reported.
5G Rate Plans To Skyrocket Due To Global Governmental Crackdown On Huawei
The article references the UK but unfortunately this is true for most Western countries.
The consequences are going to be significantly higher rate plans.
There are many wireless operators that started deployment of Huawei for 5G and now their governments are saying that you need to rip and replace.
It’s highly unlikely that the governments are going to pay the wireless operators to do this, as it was clear to the global community the risks that the operators were taking should they move to quickly on the selection of 5G infrastructure providers.
We posted a series of articles last year on what the financial consequences are for operators (positive) in terms of leveraging Huawei pricing approach vs. others.
CAPEX budgets will now be completely blown. Operators all have highly distressed balance sheets and will have to tap the capital markets for additional capital; which will further increase their cost base.
We said that 5G pricing was promotional and unsustainable before COVID blew up every wireless network in the world; and now even more so.
What happens if governments say “remove Huawei from 4G infrastructure?”
Expect wireless prices to increase even more than we forecast.
Reduce your wireless costs and use mobilityView
5G Rate Plans To Skyrocket Due To Global Governmental Crackdown On Huawei
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