Huawei Exclusion Unlikely to Benefit Japanese Makers Much

Politics

Tokyo, Dec. 12 (Jiji Press)--Japanese telecommunications equipment makers are unlikely to benefit much from domestic carriers' expected moves to exclude Chinese products from their next-generation networks.

The impact of the expected exclusion of equipment made by Huawei Technologies Co. and ZTE Corp. from fifth-generation, or 5G, networks would be limited for Japanese makers such as NEC Corp. <6701> and Fujitsu Ltd. <6702>, observers said.

Those likely to enjoy rises in market share due to the exclusion are foreign makers, such as Sweden's Ericsson, Nokia Corp. of Finland and Samsung Electronics Co. of South Korea, they added.

The Japanese carriers will act in line with a government decision to effectively exclude the two Chinese companies from government procurement contracts due to security concerns.

At present, Softbank Corp. <9984> is the only carrier in the country that uses products of Huawei and ZTE in base stations for an existing 4G network.

[Copyright The Jiji Press, Ltd.]

Jiji Press