China Awards Key 5G Contracts to Huawei, Nokia, and Ericcson

5G is around the corner, and China the home of the world’s largest telecom operator in terms of subscribers is also preparing for the next generation of wireless networks. On June 6th China issued 5G licenses to three of its largest telecom operators and cable network providers.

China Mobile- the largest telecom operator in China, awarded its 5G contracts to three different companies, including Sweden’s Ericsson and Finland’s Nokia, together with China’s home tech giant Huawei.

China had at the beginning of the year through the Ministry of Industry and Information Technology promised to involve international companies to have a share of its equipment procurement as it prepares to build the next generation of wireless networks – 5G.

Huawei, Nokia, and Ericcson were among the beneficiaries of the 5G contract. Huawei was awarded the lions share securing half of the 5G contract from China Mobile- that’s not surprising. Huawei will supply 49 percent of the MME/SGSN equipment and 54 percent of the SAE-GW/GGSN equipment – two types of core network equipment needed for 5G operation.

Ericcson secured 34 percent while Finish Nokia secured 12percent of MME/SGSN equipment. For the SAE-GW/GGSN equipment, Ericcson and Nokia bagged 34 percent and 9 percent respectively.

Nokia and Huawei to date remain the leading companies in terms of acquired 5G contracts. Huawei announced earlier this month that they had secured 46 commercial 5G contracts in 30 different countries. Nokia and Ericcson have also reported publicly they have acquired 43 and 21 5G commercial contracts.

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Featured Image/ Reuters

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Alvin Wanjala

Alvin Wanjala has been writing about technology for over 2 years. He writes about different topics in the consumer tech space. He loves streaming music, programming, and gaming during downtimes.

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