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SK selects “preferred negotiation partners” in next-generation 5G equipment
SK Telecom (SKT) selected Samsung Electronics, Ericsson, and Nokia on Sept. 14 as “preferred negotiation partners” on supplies of next-generation 5G equipment. Not included in the group was Huawei, which had previously emerged as a strong contender alongside the other three.
“There is a fierce competition going on globally for dominance in next-generation mobile communications,” SKT explained on its reasons for selecting the three companies and preferred negotiation partners.
“Samsung Electronics, Ericsson, and Nokia were seen as being leaders in technology related to next-generation mobile communications equipment and as having the necessary capabilities to promote the ecosystem, and consideration was also given to financial elements such as investment costs,” it said.
Between June and August, SKT conducted performance and suitability testing on the next-generation mobile communications equipment of all four companies, including Huawei.
SKT remained quiet on its reasons for ruling Huawei out. Holding the world’s largest share of the wireless communications equipment market, Huawei is seen as a next-generation mobile communications equipment leader in both technology capabilities and cost competitiveness.
But countries including the US, Japan, and Australia have shut out its devices, citing the potential threat to national security if information is leaked to the Chinese government. A fierce debate reportedly occurred during SKT’s preferred negotiation partner selection process when some staff members advocated also introducing Huawei equipment.
When asked whether the issue of security had influenced the company’s decision, SKT staff said this was not the case.
“The equipment hasn’t been completed, so we haven’t even been able to test its security,” the staff member said.
Some industry analysis saw SKT’s decision as reflecting concerns about the diplomatic baggage in terms of relations with the US and China in its representative position as South Korea’s top-ranked telecommunications operator. Observers are now looking to see whom KT and LGU+ choose as their preferred negotiation partners for next-generational telecommunications equipment supplies.
Huawei had focused considered efforts on its bid, seeing a successful performance in the South Korean market – with its “world’s first commercialization” schedule – as being as potentially advantageous for its advancement prospects in other countries.
SKT plans to finish contract procedures for next-generational telecommunications equipment supplies and begin building a communications network by next month.
By Kim Hyo-sil, staff reporter
Please direct comments or questions to [english@hani.co.kr]
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