In as much as Huawei has been banned from distributing its 5G technology to American telecoms, the company is now trying to license their technology to attract American companies.
According to Vincent Pang, Huawei’s Senior VP, the company is holding discussions with the prospects and some firms are already showing interest. Although the VP could not ascertain if the company would land the clients, he pointed out that one-term transfers would prove much more expensive than long-term deals in terms of maintenance and development.
With Huawei still enlisted on America’s Commerce Department’s Entity List, we are yet to see how they will go about it since they would be required to get permission for such negotiations.
If Huawei is to have a license or a transfer deal with American companies, it will still be considered a violation. This will be the case even if no physical goods will be exchanged between the two parties.
Currently, 5G networks outside Huawei are monopolized by Nokia and Ericksson which could give American companies a chance of leaping on to the new technology without getting into trouble.
The companies will now not be contracting directly from Huawei per se but will still enjoy the highly revered 5G network. Will the US get beaten to its own game?
American companies will definitely want a share of Huawei’s new technology in order to stay ahead of competitors, which is why many will be delighted by the idea of a license.
However, only time will tell if these tech giants will make this breakthrough.