Despite all its geopolitical challenges in 2020, Huawei still ended the year with 31% of the global telecoms equipment market by revenue, up from 28% the year before, according to estimates by Dell’Oro.
The market – which the firm defines as comprising broadband access, microwave and optical transport, RAN and core, carrier routers and Carrier Ethernet – grew by 7% year-on-year overall, the fastest pace of uptick since 2011. The top seven suppliers account for over 80% of the total – after Huawei came Nokia and Ericsson, though with only half the market share (15% each), and then ZTE, Cisco, Ciena and Samsung.
Of course, Huawei is helped by being one of the only companies on the list to provide equipment in all the categories, and it has been a major beneficiary of China’s huge infrastructure roll-outs, especially in 5G RAN and transport. However, the vendor will continue to face restrictions and sanctions in some key markets in 2021, and in particular, any hopes that these might be relaxed in the USA with the start of a new government have so far been dashed.
Indeed, new restrictions have been reportedly put in place under the auspices of president Joe Biden’s administration. Sources suggest the licences that US companies must win in order to supply Huawei have now been changed to exclude items that can be used in 5G devices.
Meanwhile, India continues to flip-flop over its approach to Chinese suppliers. Most recently, the government has altered the rules for telco licence holders, saying that from June 15 this year, they must only buy equipment from sources approved by the National Cyber Security Coordinator (NCSC).
“With effect from June 15, the licensee shall only connect ‘trusted products’ in its network and also seek permission from the Designated Authority for upgradation of existing network utilizing the telecom equipment not designated as trusted sources,” said the Department of Telecom amendment.
Earlier this year, India’s communications and IT minister, Ravi Shankar Prasad, called on telcos to use homegrown equipment, especially for the mobile core. “The core of the network should be Indian,” he said.
Despite these tactics, Bharti Airtel, the third largest MNO, has awarded an INR3bn ($41.12m) national long distance (NLD) network expansion contract to Huawei, which already runs its NLD network. Bharti’s parent company chairman, Sunil Bharti Mittal, has said Huawei’s equipment was “better than its rivals’.”
Huawei has also gained support from Vodafone Idea, which is reported to be prepared to award RAN and transport contracts to Huawei, though not core network deals.