Huawei begins early talks to sell 5G technology to the US companies

Huawei has begun early-stage talks with some US telecoms about licensing its fifth-gen network technology to them, revealed in a new report.

According to Reuters, Vincent Pang, senior vice president, and board director at the company said some firms had expressed interest in both a long-term deal or a one-off transfer, declining to name or quantify the companies.

“There are some companies talking to us, but it would take a long journey to really finalize everything,” Pang explained on a visit to Washington this week. “They have shown interest,” he added, saying conversations are only a couple of weeks old and not at a detailed level yet.

Last month, Huawei Founder and CEO, Ren Zhengfei came up with this offer, allowing to license its technology with a one-time fee including the access to Huawei’s 5G patent, licenses, code, and support.

Currently, there are no US-originated 5G providers and Huawei’s European rivals including Ericsson and Nokia are selling more expensive.

Peng declined to predict any signing on the deal. However, he warned that after the technology transfer from Huawei, companies need to invest a hefty amount of money required for the continued improvement of the technology.

The US alleged that Huawei’s network equipment is not safe and is a threat to the national security. The US has also barred the company from selling its equipment and pushing allies country to the same. In response, Huawei says, the claims made by the US are false and its equipment are safe to use.