The U.S. has cracked down on Huawei. This time, the Pentagon proposed a proposal to call on U.S. telecom operators to develop 5G, requiring U.S. companies to open their technology to local rivals, known as “open source 5G” to compete with Huawei. The U.S. approach is suspected of forcing U.S. companies to “transfer technology to each other”, with British media coming forward to say that the move would harm U.S. companies. But the Pentagon has threatened that U.S. companies will be eliminated if they don’t.
Huawei currently has an edge in 5G, and as of the first half of this year, none of all US companies have had much more of a 5G core patent.
The Financial Times reported on December 22nd that Lisa Porter, head of research and development at the US Department of Defense, had asked US companies to develop open-source 5G software. Specifically, the Pentagon requires U.S. companies to integrate research and development efforts in wireless access networks. U.S. telecom operators will then be able to buy off-the-shelf hardware directly from U.S. telecommunications equipment vendors, rather than custom hardware.
According to the Financial Times, the US approach is in effect requiring US companies to open up their 5G technology to potential competitors. The move would threaten U.S. companies such as Cisco or Oracle, the largest U.S. provider of telecommunications network equipment.
But Mr Porter warned that if US companies did not do so, they risked being eliminated.
“Those drag on the market will eventually emerge. Like historical trends, the classic is Kodak, which invented digital cameras but didn’t take advantage of them. Mr Porter said it was up to the market to decide who was the winner and the market would decide.
Has the US insisted on Huawei’s “plagiarism technology” and is now slap in the face to US law? The Observer found that the 2016 U.S. Trade Secretprotection Act emphasized judicial protections for plagiarized technology companies. Article 7, however, provides that the perpetrator may be exempted from liability for “non-public disclosure of trade secrets” to United States government agencies.
Trade Secret protection Act Article 7 from the U.S. Congress
In an effort to crack down on Huawei, the U.S. government has recently come up with gimmicks. In addition to drawing up a “list of entities,” the Trump administration last week was revealed to have urged U.S. companies to sign so-called “principled documents” that required them to stop buying equipment from Chinese companies such as Huawei, but industry representatives refused.
In October, the US government also considered funding Nokia and Ericsson in an attempt to boost Huawei’s rivals and squeeze its market share. But Nokia and Ericsson rejected the offer.
Now the U.S. government wants to gather all the domestic forces to develop 5G to catch up with Huawei, it is very difficult.
Huawei’s market share in communications equipment is 28 per cent, followed by Ericsson with 27 per cent and Nokia with 8 per cent, according to Dell’Oro, a consultancy, in the first quarter of this year. U.S. companies are not on the first tier. In addition, according to a recent report by IPlytics, a German patent data company, as of September this year, Huawei had an absolute commanding position among the world’s 5G SEP patents, with up to 3,325 applications.
Pictured from the data site statista
Lu Yong, vice president of Huawei Technologies Co., Ltd., said this was a certainty because Huawei spent more than 100 billion yuan on research and development last year, surpassing Intel and Apple. Mr Lu revealed that Huawei holds 20 per cent of the world’s 5G patents, compared with less than 15 per cent of all US companies’ 5G core patents.