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Huawei Signs a 5G Deal With Russian Telecoms

Huawei successfully signs a 5G deal with Russian telecoms firm MTS in order to develop 5G infrastructure in Russia.

Both the companies Huawei and MTS will collaborate to develop 5G next-generation networks within one year according to the reports. The deal was finalized when Chinese president Xi Jinping made a 3-day visit to Russia.

Huawei’s move came after the US and its other European allies blocked Huawei for developing 5G networks over the security concern. According to a recent GSMA report, Huawei and ZTE blockage in Europe could cost 55 billion Euros.

The deal will ensure “the development of 5G technologies and the pilot launch of fifth-generation networks in 2019 and 2020,” MTS said in a statement. The deal is will also provide Huawei with some relief which was under immense pressure and scrutiny by the international firms and governments in the past few months.

Huawei under the radar

Huawei has been a prime focus of US-China trade war, after imposing tariffs on trade items on one another US shifted its focus on technology firms, Huawei and ZTE became the victim of this. The US has pushed its allies to block Huawei the world’s largest manufacturer of telecoms equipment, from 5G networks.

Although Huawei has repeatedly rejected the US claims of national security threat, Huawei also invited the US government to visit and monitor its operations in order to clear the doubt they have. However, some countries are still blocking Huawei from 5G networks including New Zealand and Australia, the UK, on the other hand, will make its own assessment before deciding whether or not to block Huawei, according to some leaks, the UK is not likely to block Huawei from developing 5G networks but the final report is yet to come in spring.

Huawei has already found a substitute for parallel growth with this new deal with Russia, however, US firms could suffer a lot due to the ban on Huawei, the development of 5G networks could also be delayed.