Former US President Trump decided to embargo Huawei and ZTE in 2019. The fact that the embargo later became inclusive until the installation of the 5G infrastructure brought up a new problem.
The fact that the process that started with the Huawei embargo has spread to a critical technology such as 5G is among the biggest problems of the USA at the moment. Although giant companies such as Verizon have completed this transformation, there are many large and small telecom companies in the country that serve local regions. In this sense, US telecom companies have already exceeded the budget allocated for the Huawei 5G embargo.
US companies exceed budget allocated for Huawei 5G embargo
Currently, Huawei and ZTE have important patents and technologies in 5G base stations and infrastructure installations. In this sense, until 2020, the USA used Huawei’s technology in its 5G investments. However, after the Huawei embargo, the USA sought to re-establish the entire 5G infrastructure. Accordingly, the USA calculated that all this change would cost around 1.8 billion dollars. However, according to the latest figures from the American Federal Communications Board FCC, the account at home did not fit the market.
Huawei and ZTE have key patents for 5G
The US Congress allocated a budget of 1.9 billion dollars for the cost, which it calculated as 1.8 billion dollars. However, the cost after two years is 5.6 billion dollars. As of January 2022, more than 180 applications had been received by the FCC. As counterparts to Huawei and ZTE products, companies such as Ericsson and Nokia are among the companies that provide the 5G exchange.
However, one of the reasons why Chinese companies outperform their competitors in 5G is costs. 5G networks, which are established with lower costs than their competitors, are recruited at much higher costs. It is also among the information that the US Congress has not created a fund other than a fund of $ 1.9 billion for now. In this sense, companies expect these replacement costs to be covered.
Huawei, on the other hand, continues to invest, although it has been shaken after the US embargo. The company, which has shrunk on the mobile phone side and sold its sub-brand Honor, has given all its focus to the Harmony OS operating system. Again, the company is still trying to produce its own processor.
How do you interpret the fact that the US has almost tripled its budget after the Huawei 5G embargo? We welcome your comments and evaluations under the news and in the ShiftDelete Forum.
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