In the global 5G communications market, apart from our domestic Huawei and ZTE, the only leading companies remaining are the old European giants Nokia and Ericsson. If we look at the number of orders alone, today Ericsson can be said to be the most popular 5G manufacturer in the world, because so far, Ericsson has won more than 140 5G contracts in one day, far ahead of companies such as Huawei.
And just recently, another US company made a choice, and a large order worth 53.8 billion yuan was won by Ericsson, further strengthening its 5G customer strength. This American company refers to Verizon, the largest communications operator in the United States. Since the United States does not allow it to cooperate with Chinese communications companies such as Huawei and ZTE, Ericsson naturally becomes the best choice.
According to Ericsson’s official website, it has signed a 5G cooperation agreement with Verizon, involving funds of up to 8.3 billion U.S. dollars, which is approximately 53.8 billion yuan in RMB. For Ericsson, this order is the largest in the past two years. It will definitely allow it to occupy a larger market and strive to stabilize its position.
From Verizon's perspective, the reason why it submitted a large order of 53.8 billion yuan to Ericsson is to use the other party's 5G equipment and technology to accelerate the local network construction process in the United States. You know, since the United States kicked Huawei out of the North American market, those American companies have been unable to obtain 5G supplies, and network construction work has naturally come to a standstill.
It is precisely because the speed of advancement is too slow that in the 5G era, the United States will be at a comprehensive backward level, and until now has not built a complete communication network. It is not difficult to see from this that Verizon chose to cooperate with Ericsson this time because it wants to help the United States realize the 5G network and maintain its dominance in the communications industry.
In fact, the reason why the United States frequently targets domestic communications companies such as Huawei and ZTE is because it feels that its position is threatened and it must hinder the rise of competitors. Although US companies had a great say in the 3G and 4G era, after entering the 5G era, US companies have been in a passive situation, and the United States will definitely find ways to change this situation.
So now that the largest operator in the United States has handed over a 53.8 billion yuan 5G order to the European giant Ericsson, does it mean that Huawei has been overtaken? It is true that Huawei is not as good as Ericsson in terms of the number of orders. Even if Huawei has not updated its orders for a long time, it will not exceed Ericsson's more than 140 contracts. This result is undoubtedly the first in the world.
But what must be known is that a large part of Ericsson's orders are obtained through "leaps". If Huawei's 5G was not restricted by the United States, its order number would inevitably be ahead of Ericsson. The reason why I say this is because at the beginning, the growth rate of Huawei's 5G orders was not comparable to that of Ericsson. It obtained more than 90 contracts in just a few months.
Unfortunately, due to the obstruction of the United States, many countries did not dare to give orders to Huawei, and Ericsson became the biggest beneficiary. It can be said that the United States contributed a lot to Ericsson's ability to obtain more than 140 5G commercial contracts. Ericsson also fought hard to obtain this Verion order.
In addition, Ericsson is not Huawei's opponent in terms of 5G core technology. Although the 5G patents held by the former can be ranked among the top, they are somewhat dwarfed by Huawei. As of now, Huawei's 5G patented technology is still No. 1 in the world, and it has begun to charge patent fees from other companies. Anyone who needs to use Huawei's 5G patents cannot escape.
Just like Verizon mentioned above, it has just reached a patent settlement with Huawei and needs to hand over US$1 billion in patent fees to Huawei. In this way, Ericsson seems a bit embarrassed. Huawei 5G makes money through patents, and Ericsson is still taking orders. It is clear at a glance which one is better.
To sum up, although Ericsson has received a 5G order worth up to 53.8 billion yuan from the US giant Verizon, this does not mean that it has completely surpassed Huawei. It can only be said that Ericsson has seized many opportunities. Leading Huawei in the number of 5G orders. I hope that Huawei’s 5G will be able to get rid of the US blockade and achieve a real rise!