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KT Chairman Hwang Chang-gyu listens to an explanation of next-generation mobile communications by a KT employee at the 2018 Mobile World Congress (MWC) Americas in Los Angeles in September. (provided by KT)

KT has joined SKT as a next-generation mobile communications (5G) business ruling out China’s Huawei as a primary supplier of equipment for its commercialization stage. Analysts said the situation translated into greater bargaining strength with Huawei for LGU+, which has yet to select an equipment supplier.

On Nov. 8, KT announced its selection of Samsung Electronics, Ericsson, and Nokia as next-generation mobile communications equipment suppliers. Not included on the list was Huawei, which took part in technology testing with the others.

KT explained that it had “taken into account a full range of factors to provide the top level of next-generation mobile communications services and promote the ecosystem, including technological capabilities as well as linkage to existing LTE networks, stable operation, and investment costs.”

In September, SKT also chose Samsung Electronics, Ericsson, and Nokia as suppliers of next-generation mobile communications equipment. LGU+ has yet to choose a supplier, but is said to be seriously weighing a system in which it would receive equipment supplies from Huawei in addition to Samsung Electronics, Ericsson, and Nokia.

While some have suggested SKT and KT ruled Huawei out of consideration due to security issues that have recently emerged, many analysts said this was not the case.

“The next-generation mobile communications network at the commercialization stage adopts a non-standalone (NSA) approach, so compatibility with existing LTE cable networks is crucial,” said one industry source.

“Changing the equipment supplier would mean having to change some of the equipment within the LTE cable section, which would cost a lot of money,” the source explained.

“It’s actually more accurate to say that the companies have used Huawei as leverage in their price negotiations with existing equipment companies,” the source added.

The three next-generation mobile communications companies plan to begin test transmissions of 5G waves as of Dec. 1, with commercialization scheduled to begin around March of next year, when the devices and user agreements are expected to be ready.

By Kim Jae-seob, staff reporter

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