If Nokia, Ericsson and Samsung focus their efforts on the markets where Huawei is blocked, Nair said other countries could suffer when it comes to the rollout of 5G.
“Smaller Asian markets may suffer if Huawei’s competitors turn their attention toward the U.S. and major European economies to fill the void,” Nair told CNBC.
While the U.S. has banned Huawei, countries in Europe have tread more carefully — despite U.S. pressure. Germany, for example, said it was not ready to ban Huawei or any particular vendor of network equipment.
The CEO of European carrier Vodafone, Nick Read, warned last month that excluding Huawei from Europe’s 5G networks could be “hugely disruptive” to national infrastructure. Vodafone is a long-time Huawei customer and continues to work with the company.
Even Ericsson CEO Borje Ekholm said in February that the debate over Huawei is causing “uncertainty” that could delay the introduction of 5G in Europe.
Collins of CCS Insight agreed that some markets without Huawei could see a slower rollout.
“Many of the operators we speak with have said that without Huawei in the network, 5G rollout will slow. It is the market leader in size and 5G development,” Collins said. “Even Ericsson and Nokia acknowledge that, when one of the CEOs said that hampering Huawei will slow the whole 5G industry rollout, as it holds so much of the technology right now.”
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