There is no doubt that 5G has become a buzzword nowadays, but it is reckless and a mistake to believe the notion that countries need to rush to deploy it. Doing so can actually increase the chances of security breaches. 5G is important; there is no denying this fact as this technology promises unparalleled connectivity and high speeds that are needed for releasing the full potential of artificial intelligence and IoT (internet of things) i.e. the expanding network of web-connected devices. Therefore, this tech will be vital for economic competitiveness, but getting into a race to installing it would only backfire. Moreover, China’s Huawei is going around making claims of shaping our technological future, but this is not necessarily true.
The propaganda of the Chinese government and marketing by Huawei has made it appear as if there is no way to 5G without Huawei. The telecommunication company regards itself as the unparalleled leader when it comes to this technology. It is busy securing commercial partnerships all over the world and already has 50+ contracts in more than 30 countries. In fact, the company has even introduced a campaign in Europe to urge residents to ‘Vote for 5G’, as if that’s the only way Europe can have a smarter future.
However, the fact is that the Chinese company’s claims of being the Number 1 in 5G could be misleading. Yes, the company is a powerhouse and leader, but it is not the only player. While it wouldn’t be wise to underestimate the company’s technological capabilities, there are some notable reasons to be skeptical about Huawei’s supposed superiority when it comes to 5G. In its quest for achieving dominance in the telecommunication industry, Huawei has used practices and tactics that are anti-ethical to healthy and fair competition. With a market share of 30 percent of the global telecommunication equipment industry, it has the power to undercut and underbid competitors.
There have also been multiple alleged incidents of corruption and bribery. The determination of the Chinese firm to provide cheap equipment and services to gain market share often puts competitors under intense pressure. Also, it is almost never a fair fight because the Chinese government has provided the company with billions of dollars in the form of support, various benefits and subsidies. For instance, the lines of credit given to Huawei from state-owned banks amount to almost $100 billion. The business culture has also helped the company because it encourages and even incentivizes theft.
At best, some of the company’s activities like its aggressive talent hiring from competitors may be regarded as standard practices in the industry. But, at worst, the business practices of the company may actually be in violation of legal boundaries. Many accusations have been made regarding intellectual property theft and there have also been ongoing reports of attempting to expropriate sensitive technologies, from military technology to the copying of Cisco’s source code. These dubious practices only reveal that Huawei may not be as advanced and cutting-edge as it claims to be.
The belief that Huawei currently has an insurmountable lead when it comes to 5G is only people’s failure to distinguish the company’s carefully created image from any real technological development. It is true that Huawei has been pursuing 5G for a long time and has massively invested in next-gen telecommunication since 2007. In the last decade, Huawei has spent in excess of $60 billion on research and development and is planning to increase its 5G investments, which may exceed $15 billion. The company does provide cost-effective and mature equipment and is one of the few players in the market that offers an end-to-end 5G solution.
But, the fact is that it remains unclear how Huawei’s system can be integrated with existing 4G infrastructure from other companies. The long-term performance of 5G networks is questionable at best and the security of Huawei’s products can be deemed subpar. Countries may opt for this low-cost solution because they don’t want to be left behind in the 5G race, but this will create an insecure and unstable foundation for their future economies and societies. Huawei may claim that it has moved far ahead of anyone else in 5G infrastructure, figuring out who is truly ahead would mean looking at several factors.
Some of these indicators can include deployed performance, commercial contracts, real technological innovation and integration with network infrastructure. For instance, Huawei claims that it has more 5G patents as compared to those of all US companies, but quantity is not indicative of quality. This is especially true in China where patents tend to have dubious value. The company’s CEO, Ren Zhengfei, has stated that their aim is to ‘stand on top of the world’, but in reality, the global supply is still heavily interdependent. In fact, Washington is seeking to exploit this leverage by limiting the company’s access to US technologies.
Other than that, the competitors of the company also boast some core strengths in regard to fundamental technologies that will create 5G. Even though there will be efficiencies with the relative vertical integration that Huawei has promised, the diversity of suppliers continues to pave way for innovation and competition. A number of companies based in the European Union, United States, Japan, Taiwan and South Korea are also major providers and industry leaders throughout the supply chain. Fair competition and market diversity can help in creating a healthy ecosystem, which would emphasize the importance of standards, regulatory bodies and industry alliances to ensure interoperability and security.
Monopolies are certainly bad for security and business. Even if Huawei does improve its own security, a small bug or even a single vulnerability can lead to global damage if the company turns out to be as dominant as it claims to be. The real race in 5G is not about quick deployment, but about the critical underlying technologies that will shape the future of 5G. From research and development to deployment and mobile network operators, maintenance and policymakers should prioritize implementing rigorous standards for ensuring security.
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