Huawei to Build 5G Network for Russia's MTS

Saul Bowman
June 9, 2019

China's Huawei has signed a deal with Russian telecoms firm MTS to develop 5G technology in Russia.

Huawei said in response to the license grant that it was prepared to support China's 5G build-out.

Reuters reported that the 5G awards could benefit vendors such as Huawei, as it struggles to overcome Western national security concerns and a blacklisting by the United States. The deal will see "the development of 5G technologies and the pilot launch of fifth-generation networks in 2019 and 2020", MTS said in a statement, according to a report on the BBC News website.

Huawei has faced intense worldwide scrutiny in recent months, and this has affected stock price significantly.

MTS said in a statement that it plans to work with Huawei on developing 5G technologies.

Huawei has filed last week a "motion for summary judgment" in its legal lawsuit challenging the U.S. law constitutionality banning its federal agencies from purchasing Huawei products. Huawei relies on licences for ARM's chip architecture designs of us origin in smartphone production.

Washington has also been urging allies to restrict or ban the use of Huawei equipment in their 5G networks, warning that Beijing could use the sensitive data infrastructure for spying. "The fact that the ceremony was attended by the President of Russian Federation and the Chairman of the People's Republic of China once again proves how important partnership for technology is for Russian Federation and China". The Trump administration added the company to its "entity list".

MTS also has about nine million fixed-line customers who use its voice, broadband Internet and pay-TV services in Russian Federation. Apart from publicly denouncing the Chinese firm, the USA barred Huawei equipment from the country and banned the transfer of technologies and software to it by USA companies.

The U.S. has imposed sanctions against the world's No. 1 network equipment provider and second-largest smartphone maker, arguing that it is legally beholden to the Chinese government, which could use the company's products for cyberespionage. The U.S. and other governments and foreign companies also are unhappy over Chinese policies and business practices that they say force transfers of technology.

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