Huawei expands its business in South Korea and robs 5G telecom network equipment orders with Korean companies

According to BusinessKorea reported on June 12th, Beijing time, the arrival of the next generation of 5G mobile communication era has made Korean companies increasingly wary of Huawei. The Chinese telecom company is stepping up its efforts to expand its business in South Korea, striving for Korean customers' 5G telecom network equipment orders, and preparing to launch a new smartphone.

Industry sources said that as the 5G spectrum auction is about to be held on June 15, the competition for orders for 5G network equipment by Korean domestic and overseas equipment manufacturers is becoming increasingly fierce. When the three major operators in South Korea allocate the spectrum, they are expected to start ordering the relevant telecommunications equipment immediately next month.

In this regard, the most noteworthy point will be whether Huawei can steal some market share from Samsung Electronics, which accounts for nearly half of the Korean telecom network equipment market. Samsung Electronics, Huawei, Ericsson and Nokia are all trying to bid for 5G network equipment orders from the three major operators in South Korea, but industry experts expect that this competition will eventually become the two hegemony between Samsung Electronics and Huawei.

Huawei expands its business in South Korea and robs 5G telecom network equipment orders with Korean companies

In 2013, for the first time, Huawei provided telecom equipment for operators LG U+ to build LTE services. Due to security disputes at the time, LG U+ announced that it would not use Huawei equipment in the US military's presence in South Korea.

However, the current 5G network equipment bid is moving in favor of Huawei because it is considered a technology leader in 3.5 GHz spectrum equipment. The spectrum is called the “golden spectrum” by the industry and can be used to build a nationwide network. In addition, Huawei equipment is also 30% cheaper than its competitors.

"In the future, we will have to spend tens of trillion won to build a nationwide 5G network. Therefore, the price competitiveness of telecommunications equipment is a factor that cannot be ignored," said a telecom industry source.

Huawei is also preparing to revive its smartphone business, which has plummeted in the Korean market. “We are actively considering launching new smartphones in Korea,” said a Huawei South Korean executive. "We have not decided yet, but it is possible to launch medium and low-end models in Korea first."

Huawei's influence is constantly expanding. Market research firm TrendForce has predicted that Huawei will beat Apple in the second quarter of this year, becoming the global smartphone market. However, compared with its popularity in the global market, Huawei's mobile phone performance in South Korea is not outstanding, mainly because of its low-cost image in the hearts of Korean consumers. In 2016, Korea Telecom launched the Huawei P9 Light model called Be Y. At the end of the same year, LG U+ launched Huawei's P9 and P9 Plus. At the end of last year, Korea Telecom launched Huawei Be Y 2, but failed to achieve it. Expected results.

However, Huawei recently released its first three-camera smartphone, the P20Pro, and is expected to launch the world's first 5G smartphone and collapsible smartphone. Therefore, some experts said that Huawei's corporate image is expected to have been greatly improved.

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