Canada’s massive telecom companies partnered with Sweden’s Ericson and Finland’s Nokia Oyj to build fifth-generation 5G telecom Network, thwarting China’s Huawei Technologies for the project
In Canada, there are only three high rollers on the telecom market- Bell, Telus, and Rogers. These are the big companies in Canadian telecom services.
Bell Canada and Telus corp rejected Huawei, as per the analyst, they would ease the Canadian government’s rigid decision on whether to associate the company into Canada’s 5G network.
Huawei: Watch The reason to be eschewed
Bell Canada being the second-largest cell phone provider by wireless revenue, revealed it would partner with Ericson for its core 5G network. Previously it was said it would be Nokia who would provide other parts of its 5G tech.
Telus which owes koodo has already chosen Ericson and Nokia as its equipment suppliers, the company stated. Rogers who owns Fido as already declared its partnership with Ericson.
Last week Canadian court dealt a setback to Huawei, which recently became recognized as the regional certified top employer, and its Chief Financial Officer Meng Wanzhou as she tried to neglect deportation to the United States to face bank counterfeit charges.
Canada, which is accessing security indications of 5 G networks, has not yet decided to allow the Chinese company to provide equipment.
“The announcement put ‘ a real monkey wrench into the spanner’ for Huawei’s business ambitions in Canada, said Lawrence Surtees,“ lead research analyst on communications at IDC Canada.
He added, “ Although Huawei has contracts with smaller companies, and continues to provide some tech for Bell’s network, the two companies “ are substantial contracts and it’s a nice piece of business for whoever gets it,” he said.
As per Huawei’s views, Bell’s strategy of selecting multiple equipment suppliers, hence the situation has made telecom companies bind due to the Government’s hesitancy.
“ There is now equipment certainty and the use of multiple suppliers is an excellent strategy to help stimulate innovation and discipline pricing.” Mark Gold berg, a telecom industry consultant said.