Text: Connected Fish
Recently, the bad things about 5G construction in the United States have really been unsettled, and there have been waves of trouble. First of all, at the Mobile World Congress, the wind was not quite right, the cost of 5G construction in the United States was frighteningly high, and the technical route was not very down-to-earth, so that some operators stood directly on the edge of the cliff, and it was difficult to breathe.
Important equipment manufacturers in the United States were sold cheaply
No, there are already two operators who can't withstand the pressure and have filed for bankruptcy, including Casa Systems, which packaged and sold its 5G core network and radio access network-related "belongings" for $15 million.
You know, they have been developing the core network for many years, and the money invested in it is more than 130 million! This is simply a tearful sale, and the pants are gone, and analysts say that this is a "cheap sale".
It is understood that Casa Systems, a manufacturer that occupies a pivotal position in the 5G field in the United States, has a 10% stake in Verizon Communications Company, and Verizon is the largest provider of cable communications and mobile network communications in the United States.
In addition, some small operators in the United States are also in big trouble because they want to replace Huawei's network equipment.
The Competitive Operators Association (CCA), a group of small and medium-sized network operators, recently poured bitter water at its annual gathering. They say that especially in those remote rural areas, Huawei's equipment is being used well, but now it needs to be replaced.
The point is that the money promised by the United States is not enough to spend, and the money for the replacement of equipment is like a bottomless pit, and the budget is not enough, and now there is a shortage of a full $3 billion.
To make matters worse, there is a program called the Affordable Connectivity Program that is nearing the end of its term, which has been a lifesaver for many small operators to stay afloat. Without it, the life of small operators will be even more difficult, and some may have to close their fortunes, or even go to the abyss of bankruptcy.
As a result, the network construction in rural areas of the United States can be said to have suffered a heavy blow.
Come to think of it, the change of equipment was supposed to be for the so-called "network security", but it turned out to be self-defeating, causing chaos in the communications market of one's own one, making it impossible for small businesses to survive, and slowing down the digitalization process in rural areas. It's like trying to trim the weeds in the garden, but accidentally pulling out the whole flower.
In the final analysis, this is not just a matter of replacing Huawei equipment, but also about the thoroughness of policy formulation, the principle of fair competition in the market, and the long-term impact on the development of rural areas.
There is also a CommScope company, which specializes in communication material products, and is now also being targeted by market research agencies, saying that it may also follow in the footsteps of bankruptcy. What does this mean? The entire industry chain in the United States has been affected, and it is not a problem of a single company.
The original intention of these operations of the United States was originally targeted, and when it comes to actual operations, it is like digging a hole for itself, and it cannot be filled by jumping into it.
Behind the outbreak of the crisis of American Internet vendors
Therefore, in summary, there are two meanings behind the crisis of many network manufacturers in the United States.
First, the Open RAN technology route advocated by the United States originally wanted to open up and cooperate and reduce dependence on a single supplier, but it turned out to be a hodgepodge, with a mess of technology, full ideals, and a sense of reality.
Moreover, the income of some American equipment manufacturers has not risen, construction costs and R&D expenses have risen rapidly, and their wallets are getting more and more deflated.
Second, the "closed-door" mentality of 5G construction in the United States is also inseparable. I fell behind on the 5G track, and instead of learning from others' advanced ones, I talked about safety and closed the door to some foreign technologies. It also asked the operator to tear down the east wall and make up the west wall, insisting on taking a road that others have not walked much.
As a result, traditional manufacturers like Nokia were a little overwhelmed and finally chose to withdraw from the game. This is not only xenophobia, but also like cutting yourself off the road and driving yourself into a dead end.
From a bystander's point of view, the operation of 5G construction in the United States is like wanting to build a five-star hotel, with problematic design drawings, ridiculously expensive materials, and the construction team changing from time to time. This not only affects the competitiveness of the United States in the 5G era, but also makes a number of companies suffer with it, which is really shocking!
Ren Zhengfei has long been preemptive
In an interview with CCTV, the former Zhengfei said that Huawei's 5G equipment technology is the most advanced, and Huawei is the best one in the world who can do 5G, and they are stupid not to buy Huawei's equipment.
Ren Zhengfei's statement sounds quite direct, but it reveals Huawei's confidence in the 5G field, with 1.1 trillion yuan invested in technology research and development in ten years, the world's leading number of 5G technology patents, and fast and stable network equipment that can adapt to various complex environments.
Many network vendors around the world have praised Huawei's network solutions and equipment, and the service quality, price, and technology are the best choices. Huawei's 5G technology has indeed played an important role in network construction in many countries and regions.
Therefore, on the whole, many network manufacturers in the United States use the reality of frequent outbreaks of crises to show that Huawei's network equipment is not so easy to dismantle!
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