Huawei won this year’s second largest 5G order

China Mobile, a top Chinese telecom company recently announced a bidding result for network equipment suppliers. Among them, Huawei has won the first share of the entire bidding, and it shows that the world’s largest telecom equipment maker has won the second largest 5G order this year.

The reason why this is the second largest 5G order for Huawei this year is mainly that China Mobile has announced the winning bidder for the centralized procurement of 5G 700MHz main equipment in June this year. Huawei, at that time, also won the first among the 38 billion bids. In this purchase of Huawei’s 5G core network, China Mobile’s budget is as high as 7.5 billion yuan.

This is another time that Huawei has won the number one bidding share. In fact, the two tenders of China Mobile have a certain degree of relevance, because 5G equipment and 5G core network need to be matched, so since Huawei has obtained the largest share in 5G equipment, in fact, it has long been predicted that Huawei will also get the largest share in 5G core network.

Bidding Price:

The contract price of this entire deal is not low. Huawei’s equipment quotation is 6.40625 billion yuan and the service quotation is 1.0824.4 billion yuan, which adds up to about 7.5 billion yuan, winning the first share in the bid.

The maximum bid limit set by China Mobile for the equipment part of this bidding is 6.737 billion yuan, and the maximum bid limit for the edge UPF part is 798.7 million yuan, which adds up to a maximum bid limit of more than 7.5 billion yuan. That is to say, Huawei’s equipment quotation is equivalent to the top quotation.

The main reason for this offer is the lack of competitors. This time China Mobile limited two vendors to win the bid. Anyway, either Huawei or ZTE won the bid, and the two parties are only competing for the first share.

Huawei’s win for this contract was really easy, as China Mobile only chose to go with two vendors – Huawei and ZTE. Both of these parties have been fighting for the first spot share.

Both parties have guessed that Huawei must take the most share and ZTE is second. Therefore, the two sides will form a tacit understanding and do not need to compete at low prices. This is a rare phenomenon between the two telecom equipment makers, mainly because the bidding is set in favor of the two companies.