INTERNATIONAL - Huawei Technologies expects the roll-out of next-generation 5G wireless networks to start contributing to the firm’s revenue from next year when China launches services, the company’s deputy chairman said on Wednesday.
The Chinese telecoms equipment giant has said that it has secured more than 50 5G commercial contracts even as it fights accusations from the United States and its allies that its networks are vehicles for Chinese espionage.
Ken Hu said that while the roll-out was accelerating, especially in Asia, the company believed that it would still need to “wait for a while before 5G contributes a sizeable share to revenue”.
“We will have a clearer picture by mid-next year because by then the first batch of 5G commercial roll-outs in China will reach a certain phase,” he told reporters on the sidelines of a company conference, estimating that Huawei had now signed about 60 contracts.
China’s big three state telcos are racing to roll out 5G services in more than 50 cities this year, following countries like South Korea and the United States which have already started the service that promises to support new technologies such as autonomous driving.