Problems continue to escalate for Huawei as India joins the Us and Europe banned Chinese companies for fear of espionage. The company have He reportedly cut his income target in India by 50 percent for the current year and is also laying off up to 70 percent of his staff in the country. The manufacturer will apparently retain employees in research and development and in the Global Service Center.
Another setback for Huawei’s 5G plans
The Indian government has already blocked state operators from obtaining equipment from Huawei and ZTE and is apparently requesting that private telecommunications do the same. They have allegedly been asked to phase out Chinese equipment so that consumer services are not affected.
Reliance Jio, the country’s largest mobile network, sourced components from Samsung for its 4G network. The other two dominant companies, Bharti Airtel and Vodafone Idea, obtained their equipment from various providers, including Huawei. According to the research, the Chinese giant’s team constitutes 40 percent of the Vodafone Idea network and around 33 percent of the existing Bharti Airtel network.
It remains to be seen whether Huawei will make the cut, but it seems highly unlikely. According to a source, the company currently has no new projects in India and there is no clarity on any new business from the operators.
As bleak as the situation seems, experts believe it would be a difficult task for India to disconnect from China, as the influence of the latter on investment, trade and technology has grown significantly over the years. According to one estimate, Huawei’s India unit employs almost 700 people and this figure does not include the hundreds of people who work for the company through third-party companies.
That said, telecommunications is a sector where alternatives are available, and therefore Huawei will likely not be included in the 5G launch in India.
