In the United States, about a dozen of telecom carriers of the rural areas that are currently using and working with the network gears from Huawei are looking for alternate options to replace those equipments from Chinese companies and that led them to go in discussion with the Huawei’s biggest rivals and major players Nokia and Ericsson, reported Reuters citing sources familiar with the matter.
The rural telecom carriers including Union Wireless from Wyoming and Pine Belt from Alabama are trying to reach agreements with one of those companies to purchase the equipment on discounted prices and are also in efforts to get the government’s assistance on the matter, said the sources.
In recent year, despite the fact that big U.S. telecom companies remained shunning the Chinese firm, the factors like costs and high quality of the mobile network gear from Huawei Technologies Co Ltd and ZTE Corp have caused almost all of the small carriers in rural areas of the United States to be relied upon. After the U.S. government declaring the Huawei as a security threat and effectively banning the U.S. companies from doing business with Huawei, the talks with the rivals companies of those Chinese firms have become very critical for those small carriers.
But analysts and executives from these equipment maker companies are in opinion that the Ericsson and Nokia are not in a position to provide that equipment at price even near to the prices by Huawei as both companies remained under financial pressures in recent years, and that will make the process of switching vendor difficult for the small carriers.
The prices by Huawei and its compatriot, ZTE, were about 30% to 50% lesser than that of the rivals, as estimated Roger Entner, an analyst at Recon Analytics.
A bill to provide rural carriers with $700 million in subsidies for helping them switching vendor is pending at Congress since May, and talks are not expected to continue until finalization of any legislation in this regard, sources familiar with the discussions said.