Will Huawei withdrawal from US market give Japan telecommunications companies a chance to counterattack? The Japanese government quickly started selling Japanese companies’ products to the U.S. and British governments. They aim for the reflective benefits of Huawei’s removal. Analysts say that Japanese telecommunication companies, which have less than 1% of global market share in 5G base stations, have taken the opportunity to make up for their inferiority.
The Yomiuri Shimbun reported on the 11th that the Japanese, U.S., and British governments have decided to strengthen links to supply 5G devices and technologies to Japanese companies.
According to this, Japan and the U.K. are discussing the purchase of Japanese product. Citing diversification of sources of telecommunication devices. In November last year, the British government has already started an empirical test with Japan’s NEC to establish a 5G network. Britain is the leader of the Group of Seven (G7) this year. There is a high possibility that the “anti-China, exclusion of Huawei” will become more active.
At the same time, the Japanese government has been targeting the U.S. government since last fall. Yomiuri said that the U.S. and Japan have held director-general-level consultations and are currently likely to procure NEC or Fujitsu. The U.S. and Japan have decided to strengthen cooperation in 6G communication.
Will Japan be able to boost its market share with Huawei departure?
Currently, Huawei (33.1%), Sweden Ericsson (25.0%), and Finland Nokia (19.9%) dominate the global telecommunication base market, including 5G. The global market share of NEC and Fujitsu is only 0.7 percent and 0.6 percent, respectively. The combined figure of the two companies is 1.3 percent.
However, if the U.S. and U.S. move to exclude Huawei spreads to allies and allies, businesses will be limited to Ericsson and Nokia. The Japanese government believes that the current three-way system will be shaken. And it plans to take the initiative in the 6G era as well as 5G.
NEC and Fujitsu are also stepping up investment to increase their global market share. NEC is developing base stations with international competitiveness through capital and business partnership with NTT, Japan’s largest telecommunications company. Meanwhile Fujitsu has also decided to strengthen its overseas business. Further, It has not denied the possibility of participating in overseas projects in conjunction with NTT and NEC, calling it “one of the options.”
