US is looking at ways to divert funds to Huawei’s European rivals

The US is looking at ways to channel money to Huawei’s European rivals, as officials warn that the Chinese company is becoming dangerously dominant in the race for the next generation of mobile communications. The US official have suggested issuing credit to companies such as Nokia and Ericsson to enable them to match financing terms Huawei offers customers, a move part of a wider push to fund a rival to the Chinese company, which is the largest telecoms equipment maker and which the US believes poses security risk.

“We gave up our superiority in making telecoms equipment decades ago. Now we are realising that this might not have been the best choice for national security reasons. Almost every department and agency is desperately looking right now for ways to get back into this game. If we don’t Huawei could soon be the only option for anyone wanting to roll out 5G networks. Almost every department and agency is desperately looking right now for ways to get back intothis game.” one official said.

Huawei sells 28 per cent of telecoms equipment, Ericsson and Nokia are its closest rivals. One of the possibility is funding rural internet providers with hundreds of millions of dollars to rip out Huawei equipment and replace it with US or other western technology a plan which is making its way through Congress. Altiostar is urging administration to force hardware companies to make their products accessible to its software, while some its backers want additional tax breaks to encourage US participation on international telecoms standard bodies.

Thierry Maupile, executive vice-president at Altiostar said: “ We do not need to create another Huawei. There is an alternative. Our product is very attractive to the administration, but we need them to help support the US supply chain.”