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  1. HELSINKI/NEW YORK (Reuters) - About a dozen rural U.S. telecom carriers that depend on Huawei for network gear are in discussions with its biggest rivals, Ericsson and Nokia, to replace their Chinese equipment, sources familiar with the matter said. The carriers, which include Pine Belt in Alabama, and Union Wireless in Wyoming, are seeking discounted pricing and looking forward to government assistance but have yet to reach agreements, these sources said. Nokia and Ericsson declined to comment. The talks are critical for small carriers that have relied on Huawei Technologies Co Ltd or ZTE Corp for inexpensive, high-quality mobile network gear in recent years even as the big U.S. telecom companies shunned the Chinese firm. The U.S. government has labeled Huawei a security threat and effectively banned U.S. companies from doing business with Huawei. But switching vendors will not be easy. Nokia and Ericsson, both of which have struggled financially in recent years, will not match Huawei’s pricing, analysts and company executives say. Huawei’s prices “were not market-based,” said an equipment industry executive who has worked for years in North America. “They made no sense.” Roger Entner, an analyst at Recon Analytics, estimated Huawei and its compatriot, ZTE, charged 30% to 50% less than rivals. Talks are not expected to continue until legislation in the U.S. Congress to provide $700 million in subsidies to help rural carriers with the switch is approved, sources familiar with the discussions said. No action has been taken on the bill since it was introduced in May, according to Congress.gov. The Rural Wireless Association (RWA), a trade group, estimates it would cost between $800 million to $1 billion to install new gear. John Nettles, president of Pine Belt, said he reached out to Ericsson and Nokia last year when the federal ban on using money from the $8.5 billion Universal Service Fund for Chinese equipment was first suggested. “The conversation has been going on for about a year and they are looking for ways to bring down the price, within the reach of the smaller carriers,” he said. Without a discount, he added, rural carriers would not be able to afford it. Union Wireless said it was in discussions with Nokia, but declined to provide details. Industry executives briefed on the discussions confirmed that Nokia and Ericsson were in talks with rural carriers but detailed discussions will not happen until later this year as the regulators are still trying to determine which parts need to be replaced. Ericsson and Nokia, however, may have little incentive to offer discounts as economies of scale are not in rural carriers’ favor. The $700 million opportunity is scattered between small operators which in total, according to one industry executive, need at most 2,000 base stations to be swapped. By comparison, the top U.S. operators each run networks of more than 50,000 base stations. The availability of local workforces that manage swapping of the equipment could also be a problem. “The scarcest resource in the U.S. today is tower-climbers. There is tremendous job growth in this sector right now,” said one industry executive. RISK OF SHUT-DOWNS Rural wireless carriers typically serve between 50,000 to 100,000 subscribers in remote areas that are out of reach by big telecom companies like Verizon Communications Inc or AT&T Inc and are often the sole regional provider. Among these carriers, the RWA estimated that 25% of its members have Huawei or ZTE equipment. SI Wireless, which has 20,000 mobile customers across western portions of Kentucky and Tennessee, said the majority of its network uses Huawei equipment. Viaero, which serves 110,000 mobile customers across Eastern Colorado, Western Kansas, Nebraska and parts of Wyoming and South Dakota, said roughly 80% of its network equipment, including core, wireless, microwave and fiber, was manufactured by Huawei, according to FCC filings. “Rural telcos are not very profitable and a lot of the owners are in their 50s, 60s and 70s. If they have to rip out their network, they are probably going to shut down if they can’t easily find a buyer,” Recon Analytics’ Entner said. That means basic communications could disappear from poorly served communities. The advent of 5G networks poses a dilemma: companies that are forced to rip out Chinese equipment could try and move to 5G immediately, but that would be more expensive in the short term. Still, 5G could give the rural carriers some leverage with Nokia and Ericsson. Handelsbanken analyst Daniel Djurberg noted small deals would boost the number of 5G wins Nokia and Ericsson are counting to show their advances in the new technology. Ericsson and Nokia are likely interested in the deals also for strategic reasons. “It’s important to be in the U.S. and these operators may be bought by bigger operators later on and then they have positioned themselves,” said Bengt Nordstrom, head of Stockholm-headquartered consultancy firm Northstream which advises telecom operators and vendors. Source
  2. Microsoft and Intel Promise They Won’t Abandon Huawei Devices Running Windows An executive order signed by United States President Donald Trump in mid-May bans Huawei from working with American companies and using their products, including here both hardware and software. With Huawei using Android and Windows to power its phones and PCs, many wondered whether existing customers would still be receiving any updates following the company getting blacklisted in the United States. And while the ban did not concern models already on the market, some companies turned to decisions that pointed to an at least uncertain future for Huawei devices, including laptops running Windows 10. Microsoft originally pulled all Huawei computers from the Microsoft Store, but the software giant overturned this decision a couple of weeks later explaining that the existing inventory can go back on sale. “We have been evaluating, and will continue to respond to, the many business, technical and regulatory complexities stemming from the recent addition of Huawei to the U.S. Department of Commerce’s Export Administration Regulations Entity List. As a result, we are resuming the sale of existing inventory of Huawei devices at Microsoft Store,” Microsoft said.Software updates won’t be stoppedNow the software giant expresses its full commitment to Huawei products in a statement for PCWorld, and it emphasizes that updates would continue to be offered. “We remain committed to providing exceptional customer experiences. Our initial evaluation of the U.S. Department of Commerce’s decision on Huawei has indicated we may continue to offer Microsoft software updates to customers with Huawei devices,” the company said. Intel also confirmed for the cited source that Huawei devices will continue to receive security updates and drivers just like before the company got banned by the US government. Meanwhile, the bigger question is how Huawei plans to handle the release of new products, which according to the executive order should no longer use Windows. The Chinese tech giant is already working on its own in-house operating system to replace Windows, but the priority seems to be mobile rather than the PC market. Source
  3. Microsoft confirms that Huawei devices will continue to be upgraded and supported Despite concerns regarding the future of Huawei hardware due to government regulations, Microsoft confirms that Huawei devices will continue to receive updates and support. What you need to know Microsoft confirms that Huawei devices will continue to receive updates and support. Concerns have arisen regarding the future of Huawei hardware in response to U.S. government regulations. Huawei stated that its devices would continue to be supported last week. Microsoft confirmed that Huawei devices will continue to receive updates and support in a recent statement to PC World. Concerns have arisen regarding the future of Huawei devices following Huawei being placed on the U.S. entity list. Being on this list bans U.S. companies, including Microsoft and Intel, from trading with Huawei. While the entity list could have implications regarding devices being released in the future, a Microsoft spokesperson clarified the status of Huawei devices going forward regarding updates and support: We remain committed to providing exceptional customer experiences... Our initial evaluation of the U.S. Department of Commerce's decision on Huawei has indicated we may continue to offer Microsoft software updates to customers with Huawei devices." Huawei made a similar statement last week in an FAQ on their website, stating "All Huawei smartphones, tablets, and PCs will continue to receive security patches, Android updates and Microsoft Support." While current laptops are confirmed to receive updates and support going forward, the government regulations could affect future hardware releases. Huawei already had to delay the launch of a laptop due to the restrictions. Source
  4. WASHINGTON (Reuters) - U.S. Senator Marco Rubio filed legislation on Monday that would prevent Huawei Technologies Co Ltd from seeking damages in U.S. patent courts, after the Chinese firm demanded that Verizon Communications Inc pay $1 billion to license the rights to patented technology. Under the amendment - seen by Reuters - companies on certain U.S. government watch lists, which would include Huawei, would not be allowed to seek relief under U.S. law with respect to U.S. patents, including bringing legal action over patent infringement. On June 12, a person briefed on the matter said Huawei had told Verizon that it should pay licensing fees for more than 230 of the Chinese telecoms equipment maker’s patents and in aggregate is seeking more than $1 billion. It appeared to be a new strategy in Huawei’s ongoing battle with the U.S. government. National security experts worry that “back doors” in routers, switches and other Huawei equipment could allow China to spy on U.S. communications. Huawei has denied that it would help China spy. Rubio, one of the Republican party’s leading foreign policy voices, filed the measure as an amendment to the annual National Defense Authorization Act, or NDAA, a massive bill setting policy for spending by the Department of Defense. While the measure is several steps from becoming law, lawmakers have successfully used the NDAA in past years to crack down on the Chinese firm. Source
  5. (Reuters) - Huawei Technologies Co Ltd is preparing for a 40% to 60% decline in international smartphone shipments, Bloomberg reported on Sunday. The Chinese technology company is looking at options that include pulling the latest model of its marquee overseas smartphone, the Honor 20, according to the article, which cited people familiar with the matter. The device will begin selling in parts of Europe, including Britain and France, on June 21, the report said. Executives will be monitoring the launch and may cut off shipments if the sales are poor, it said. Marketing and sales managers at the tech giant are internally expecting a drop in volumes of anywhere between 40 million to 60 million smartphones this year, the report said. In order to offset overseas decline, Huawei is aiming to grab up to half of China’s smartphone market in 2019, Bloomberg said. The company did not respond to a Reuters request seeking comment. The U.S. government put Huawei, the world’s largest telecommunications equipment company, on a trade blacklist in May that bars U.S. suppliers from doing business with it because of what Washington says are national security concerns. At the time, Huawei founder and chief executive Ren Zhengfei said the restrictions “may slow, but only slightly” the company’s growth. A similar U.S. ban on China’s ZTE Corp, almost crippled business for Huawei’s smaller rival early last year before the curb was lifted. The company’s woes are feeding into trade tensions between Washington and Beijing. President Donald Trump has said U.S. complaints against Huawei could be resolved within the framework of any trade deal. The ban has been eased slightly to allow a temporary general license that lets Huawei purchase U.S. goods. However, Broadcom sent a shockwave through the global chipmaking industry last week when it forecast that the U.S.-China trade tensions and the Huawei ban would knock $2 billion off this year’s sales. Source
  6. HONG KONG (Reuters) - China’s Huawei Technologies Co Ltd has taken a harder-than-expected hit from a U.S. ban, the company’s founder and CEO Ren Zhengfei said, and slashed revenue expectations for the year. Ren’s downbeat assessment that the ban will hit revenue by $30 billion, the first time Huawei has quantified the impact of the U.S. action, comes as a surprise after weeks of defiant comments from company executives who maintained Huawei was technologically self-sufficient. The United States has put Huawei on an export blacklist citing national security issues, barring U.S. suppliers from selling to the world’s largest telecommunications equipment maker and No.2 maker of smartphones, without special approval. The firm has denied its products pose a security threat. The ban has forced companies, including Alphabet Inc’s Google and British chip designer ARM to limit or cease their relationships with the Chinese company. Huawei had not expected that U.S. determination to “crack” the company would be “so strong and so pervasive”, Ren said, speaking at the company’s Shenzhen headquarters on Monday. Two U.S. tech experts, George Gilder and Nicholas Negroponte, also joined the session. “We did not expect they would attack us on so many aspects,” Ren said, adding he expects a revival in business in 2021. “We cannot get components supply, cannot participate in many international organizations, cannot work closely with many universities, cannot use anything with U.S. components, and cannot even establish connection with networks that use such components.” Huawei, which turned in a revenue of 721.2 billion yuan ($104 billion) last year, expects revenue of around $100 billion this year and the next, Ren said. This compares to an initial target for a growth in 2019 to between $125 billion and $130 billion depending on foreign exchange fluctuations. TRADE WAR The Trump administration slapped sanctions on Huawei at a time when U.S.-China trade talks hit rough waters, prompting assertions from China’s leaders about the country’s progress in achieving self-sufficiency in the key semiconductor business. Huawei has also said it could roll out its Hongmeng operating system (OS), which is being tested, within nine months if needed, as its phones face being cut off from updates of Google’s Android OS in the wake of the ban. But industry insiders have remained skeptical that Chinese chip makers can quickly meet the challenge of supplying Huawei’s needs and those of other domestic technology firms. Negroponte, founder of the Massachusetts Institute of Technology Media Lab, said the U.S. ban was a mistake. “Our president has already said publicly that he would reconsider Huawei if we can make a trade deal. So clearly that is not about national security,” he said. “It is about something else,” Negroponte added. Huawei’s smartphone sales have, however, been hit by the uncertainty. Ren said the firm’s international smartphone shipments plunged 40%. While he did not give the time period, a spokesman clarified the CEO was referring to the past month. Bloomberg reported on Sunday that Huawei was preparing for a 40-60% drop in international smartphone shipments. The CEO, however, said Huawei will not cut research and development spending despite the expected hit from the ban to the company’s finances and would not have large-scale layoffs. ($1 = 6.9239 Chinese yuan) Source
  7. Huawei Pulls Phone Lock Screen Ads, Says It Has Nothing to Do with Them Huawei has removed the lock screen ads that mysteriously appeared on a number of smartphones earlier this week, yet the company claims it’s not the one to blame for this incident. Ads have started showing up on several Huawei phone models, including the high-end P30 Pro, on June 13, and according to a number of user reports, they were served through Magazine Unlock, a feature that sets a different lock screen background on each unlock. The ads pointed users to Booking.com, a hotel reservation website, and could only be blocked by completely disabling Magazine Unlock on the targeted devices. But in a statement provided to DT, Huawei says it’s not the one to blame for the ads. “The ads are not initiated by Huawei. We encourage individuals to check app settings, or follow publicly available directions on how to remove lock screen ads,” the company says. Additionally, the Honor Global PR Manager says on Twitter that customers shouldn’t see any ads on Honor phones. “This is strange. Certainly none of the current HONOR devices are doing this in any markets,” she posted.Ads are now goneNo matter who is to blame for this blunder that only fueled the criticism against Huawei, the Chinese tech giant decided to remove the ads completely by taking down several lock screen wallpapers. In a statement for XDA, Huawei explains that while the Booking.com wallpapers have been removed from the servers providing the Magazine Unlock backgrounds, they could still be available on a number of devices, so users need to delete them manually. Some questions are yet to get an answer, however. For example, Huawei did not explain how the wallpapers uploaded by third parties ended up on users’ phones and why they haven’t been verified before getting the green light. Source
  8. Huawei Confirms Android Rival, Testing Already Under Way Huawei has finally confirmed that it’s working on an Android replacement after the United States government banned it from using Google’s operating system. The executive order signed by US President Donald Trump in mid-May does not allow Huawei to use products developed by American products, and these include operating systems like Android and Windows. As a result, Huawei started the development of an in-house platform that would replace both and keep its devices alive. The testing is under way, Andrew Williamson, vice president of Huawei Technologies Co Ltd’s public affairs and communications, told Reuters. While no specifics were provided, Huawei is believed to be targeting a late-2019 release of the operating system on Chinese products, whereas the international debut should happen in 2020.Possible launch later this yearCodenamed Hongmeng, the OS could end up being called Ark OS in foreign markets. “Huawei is in the process of potentially launching a replacement,” Williamson was quoted as saying by the cited source. “It’s not something Huawei wants. We’re very happy of being part of the Android family, but Hongmeng is being tested, mostly in China. Presumably we’ll be trying to put trademarks.” As indicated by Reuters, Huawei is moving rather fast, and the company has already applied to trademark Hongmeng in several countries. Meanwhile, Huawei is trying to deal with another issue: more and more suppliers give up on their collaboration with the Chinese tech giant following the US ban. Williamson warns that although every company can decide its own future, abandoning contracts with Huawei could have what he described as “catastrophic” consequences. “We’re not specifically asking anyone to lobby for us. They’re doing it by their own desire because, for many of them, Huawei is one of their major customers,” he explained. Huawei’s operating system will continue to offer support for Android apps, and it will come with a custom app store. The company is now trying to convince developers to bring their apps to this store. Source
  9. HONG KONG (Reuters) - Huawei will delay the launch of its much-touted foldable 5G Mate X smartphone by three months, the latest setback for the company that was slapped with U.S. sanctions last month. FILE PHOTO: A staff member shows the new Huawei Mate X smartphone with 5G network The Mate X, a competitor to Samsung Electronics’ Galaxy Fold, is expected to be rolled out globally in September, Vincent Pang, Huawei’s head of corporate communications, said on the sidelines of the WSJ Tech D.Live conference in Hong Kong. It was originally slated for a June launch. The delay comes as Huawei phones face being cut off from updates of Google’s Android operating system (OS) in the wake of the U.S. blacklist that bans American companies from doing business with the Chinese firm. Pang, however, denied the delay was due to the ban, saying Huawei was in the process of running certification tests with various carriers that were expected to be completed in August. He also told Reuters that Huawei, the world’s second-largest maker of smartphones, could roll out its Hongmeng operating system (OS) - which is being tested - within nine months. “Our preference will of course be Google and Android as we have been partners for many years,” said Pang, also a senior vice president at Huawei. “But if the circumstances force us to, we can roll out Hongmeng in six to nine months.” Hongmeng is based on the version of Android that is publicly available via open-source licensing and is mainly meant for phones, Pang said. Hongmeng will support other devices later. Alphabet Inc’s Google has earlier said it would no longer provide Android software for Huawei phones after a 90-day reprieve granted by the U.S. government expires in August. Source
  10. OTTAWA (Reuters) - Canadian Foreign Minister Chrystia Freeland on Thursday dismissed a suggestion that Ottawa block the extradition of a top executive from China’s Huawei Technologies Co Ltd to the United States, saying it would set a dangerous precedent. FILE PHOTO: Canada's Foreign Minister Chrystia Freeland Huawei’s Chief Financial Officer Meng Wanzhou, who was arrested on U.S. fraud charges in Vancouver last December, will challenge Washington’s extradition request at hearings that are set to begin next January. China angrily demanded Canada release Meng and detained two Canadians on spying charges. It has also blocked imports of Canadian canola seed and Prime Minister Justin Trudeau has said he fears further retaliation. The Globe and Mail newspaper on Thursday said former Canadian Prime Minister Jean Chretien had floated the idea of the government intervening to stop the extradition case and thereby improve ties with Beijing. “When it comes to Ms Meng there has been no political interference ... and that is the right way for extradition requests to proceed,” Freeland told a televised news conference in Washington. “It would be a very dangerous precedent indeed for Canada to alter its behavior when it comes to honoring an extradition treaty in response to external pressure,” she added, saying to do so could make Canadians around the world less safe. Canadian officials say they see no prospect of relations with China improving until Meng’s future is resolved. Trudeau said last week he would look at whether it was “appropriate or desirable” to seek a meeting with Chinese President Xi Jinping on the sidelines of a Group of 20 summit in Japan later this month. Trudeau plans to visit Washington for talks on June 20 which will address the case of the two detained Canadians. Source
  11. Angry users have begun to complain that Huawei is displaying advertisements on the lock screen of its smartphones, seemingly without warning or any sort of announcement. Huawei, for its part, says that it’s not the one placing the ads on people’s phones. “The ads are not initiated by Huawei. We encourage individuals to check app settings, or follow publicly available directions on how to remove lock screen ads,” Huawei said in a statement to Digital Trends. In a tweet, an Honor representative confirmed that Honor isn’t serving ads on Honor phones in any market. According to Huawei, the ads are stemming from some third-party services or apps, and not from Huawei itself. For comparison, Huawei pointed to a similar issue that affected Samsung phones about a year ago. That said, it doesn’t seem to add up — after all, the ads are being placed in Huawei’s Magazine cycle of wallpapers, and it seems highly coincidental that a number of Huawei phone owners would all experience the same issue on the same day, while those on other phones haven’t run into the problem. A number of people on Reddit reported finding advertisements on their lock screen. One Redditor, who goes by the username Quacksnooze, posted a screenshot of a Booking.com ad that suddenly appeared on their phone. Others reported getting ads as well. According to the Reddit thread, four images related to Booking.com were added to the Huawei phone’s wallpaper rotation, meaning that they would start showing up as wallpapers like any other image. The images could be manually deleted, but it’s possible more could be added in the future. You can also get around the issue by not using Huawei’s Magazine lock screen wallpaper, but that’s a bit of a frustrating solution. People have reason to be upset. At the best of times, advertisements online can be intrusive, and having ads placed on the phone’s lock screen can remove some of the customization and personalization that people get with their phones. It’s not just cheaper phones that are getting ads either — even high-end devices, like the Huawei P20, seem to be getting them. Huawei has come under fire in the U.S. recently: The Trump administration recently blacklisted the company, banning U.S. firms from selling parts or software to it (or buying from it) without prior permission from the government. The move is sure to impact Huawei’s bottom line. This isn’t the first time we’ve seen advertising like this on a smartphone, but there’s usually some sort of trade-off. For example, Amazon serves ads on its Prime-exclusive phones, but you at least get a discount on the phone itself. Some cheaper devices sometimes have ads in an effort to subsidize the cost of the phone for the manufacturer. Xiaomi has placed ads on its phone at times, but this is listed in the company’s Terms of Service that device owners may see ads from time to time. There’s really no excuse, however, to place ads on high-end, expensive phones that customers are paying for — and we wouldn’t be surprised to see customers turn away from Huawei for implementing things like this. Updated on June 13, 2019: Huawei has responded to a request for comment. Source
  12. Huawei’s New Operating System Is Insanely Fast Versus Android Huawei is working around the clock to get its Android and Windows replacement ready for launch, and according to a new report, all its efforts are supported by the largest tech firms in China. Global Times reports that companies like Tencent, OPPO, and VIVO sent employees to Huawei to test the new internally-called HongMeng operating system. According to recent reports, the platform is referred to as HongMeng, but it could launch as Ark OS. It’s supposed to serve as a universal operating system replacing both Android and Windows, albeit running Android apps has become a priority for the company. The aforementioned source claims the tests revealed substantial speed increases as compared to the existing version of Android. HongMeng is at least 60 percent faster than Android, the report notes. Huawei hasn’t provided any specifics as to when the operating system could launch publicly, with Shao Yang, the chief strategy officer of Huawei's business consumer group, describing the release date as “a secret.”Public launch in the fallInformation that made the rounds last month indicated that HongMeng could be finalized for Chinese devices as soon as this fall, whereas the international debut could take place in 2020. Meanwhile, Huawei is already struggling following the United States ban. Because it’s no longer allowed to use Android and Windows on its devices, the Chinese tech giant had to push back several devices, including a Windows laptop that was originally projected to launch this week. According to the executive ban signed by President Donald Trump in May, Huawei can continue to provide updates for devices already on the market, but on the other hand, it is not allowed to launch new products using software or hardware belonging to American companies. As a result, Huawei is trying to reduce reliance on US-based firms and use more parts from Chinese companies, while at the same time accelerating development of its in-house operating system to replace Android and Windows. Source
  13. Huawei Delays Launch of New Windows Laptop Due to US Ban A new Windows laptop developed by Huawei and scheduled for release this week is unlikely to see daylight anytime soon, according to a report. The Chinese tech giant decided to push back the unveiling of the new laptop following the sanctions imposed by the United States in mid-May. The Information notes that the device was projected to be unveiled at CES Asia 2019 in Shanghai, but the announcement has been “postponed indefinitely.” Employees are quoted as saying that a new launch date for the Windows laptop is yet to be set, most likely as Huawei first wants to find a way to get around the United States blacklist. US President Donald Trump banned Huawei from working with American companies back in May, and the executive order prohibits the Chinese tech giant from using software like Android and Windows.No operating systemWithout an operating system to power this laptop, Huawei had no other option than to push back the unveiling of the device, at least until it finds an alternative. Huawei is currently developing an in-house universal operating system to replace both Android and Windows on its devices, but the launch in China is only projected to take place in the fall. The international debut of the OS on new models is due in 2020, people familiar with the matter said. Earlier this week, a separate report revealed that Huawei suspended the development of new laptops, once again because the company doesn’t currently have an alternative operating system to power them. According to the US ban, Huawei can continue to release updates on its existing Android and Windows devices, but it can’t use these operating systems on new products. Huawei hasn’t obviously commented on this report, but the lack of a laptop unveiling at CES this week should pretty much be living proof that the US ban just made its first major victim. Source
  14. Huawei Suspends the Development of Windows Laptops The executive order signed by US President Donald Trump in mid-May blacklisted Huawei and puts a ban on the company’s use of products developed by American companies. These products include both software and hardware, so as a result, Huawei can no longer install Android and Windows on its devices. While the Chinese tech giant has already started the development of its own operating system to replace both Android and Windows, the universal platform isn’t yet ready, and Huawei has no other option than to delay certain projects. As a result, the company has recently decided to put the development of new laptops on hold, as per a report from Digitimes, mostly because it has no operating system to power these devices. Few specifics are available at this point, but it turns out Huawei has already communicated its decision to supply chain partners to helped bring these devices to the market. All of them were told to suspend deliveries, albeit this all looks to be just a temporary decision until Huawei solves the problem of not having an operating system for its PCs. Huawei OS ready for Chinese debut in the fall On the other hand, given that some devices might be delayed, they could eventually be canceled for good, as their technical specs may no longer come in line with the existing market demand when they are ready for launch. Needless to say, Huawei remains completely tight-lipped on everything regarding its methods of dealing with the US ban, even though the company originally said it would be fully prepared for such restrictions. According to people familiar with the matter, Huawei’s operating system is expected to be finalized this summer and then installed on smartphones launching in China in the fall. The international debut of the OS is projected to take place next year, but it’s not clear at this point if it’s fully prepared for PCs or not. Source
  15. The Chinese technology giant's enormous product and service footprint gives it access to more data than almost any other single organization, Recorded Future says. A new report from threat intelligence firm Recorded Future portrays Chinese technology giant Huawei as presenting a substantially bigger threat to US interests and organizations than currently perceived. According to the firm, Huawei's enormous range of technologies and products and its global customer base has put the company in a position to access an unprecedented amount of information on organizations, governments, and people worldwide. Huawei's obligations to the Chinese government under various national security and related statutes puts that data at risk of interception and compromise, Recorded Future said. "The position that Huawei occupies in China and its obligations under that government's laws and regulations cannot be minimized," warns Priscilla Moriuchi, director of strategic threat development at Recorded Future. "Huawei, as a Chinese company, is not inherently malign," she acknowledges. "However, the people that compose Huawei will at some point likely be forced into making decisions that could compromise the integrity or corporate ambitions of their customers." President Trump last month signed an executive order that effectively bans US government agencies from buying technologies that are owned by, controlled by, or subject to the laws of foreign adversaries. The order cited concerns over the potential for foreign governments to force such vendors to use their technology to spy on US organizations and to conduct widespread espionage — via backdoors, for instance. The executive order also requires contractors that work with the federal government to jettison Huawei technologies from their infrastructure in a phased manner. The Trump administration's order did not explicitly name Huawei, or any other technology companies for that matter. But many see it as directed particularly at the Chinese technology vendor. Over the past few years, US officials have openly expressed concern over what they perceive as Huawei's close ties to the Chinese government. The US has accused China of conducting widespread economic espionage for a long time. Last year, CNBC reported six US intelligence heads cautioning against the use of Huawei's phones in the US market because of such concerns. Recently, government officials and others have focused on the national security implications of Huawei's leadership in the 5G networking space. It has urged allies and governments around the world to stop using Huawei technology as well. Huawei, for its part, has strongly denied accusations that it is working on behalf of the Chinese government or is supplying information to the government, as its critics have suggested. The company has described itself as a victim of a broader geopolitical battle between the US and Chinese governments. Huawei has suggested that at least some of the pushback from Western governments stems from its enormous success in the technology arena. The company is currently in the third spot behind Apple in the global smartphone market, and its technology is widely used across many parts of Asia. "I would argue that we are beyond the point of needing specific evidence, and that we must address the question of Huawei risk comprehensively with the available data," says Moriuchi. Broad and Growing Footprint Huawei currently offers a broader range of technology products than almost any other company, including Western technology giants such as Microsoft and Apple. The company's portfolio includes broadband network components; cloud computing and storage technologies; infrastructure management software; network switches and routers; and mobile phones, laptops, and wearables. Many of these technologies are installed within organizations or are embedded in the networks of cloud service providers and other third parties, according to Recorded Future. Huawei's technology is being used in so-called "safe city" surveillance programs in multiple cities around the world, and the company is aggressively expanding its presence in the core Internet routing space via undersea cables and fiber-optic technology. Huawei's enormous footprint has given it access to more data than perhaps any single other organization. What makes that worrisome is that under Chinese laws passed since 2016, Huawei has a legal responsibility to provide access to and support the country's intelligence-gathering apparatus, Moriuchi says. "There is no legal mechanism in China for a company to challenge or contest a request by the intelligence and security services," she says. Huawei has also benefited from government loans and received funding from China's military and intelligence agencies and over the years has benefited from government support and preferential treatment, Moriuchi claims. For companies and individuals, the threat from Huawei can be distilled down to the risk to business and personal data, networks, intellectual property, and even long-term corporate viability. When deciding to use Huawei products, organizations need to figure out what their risk tolerance for monitoring, interference, or potentially sensitive data theft from China is. "If the risk threshold is low, we recommend that companies minimize the number of Huawei technologies and services within core or critical segments of their networks," Moriuchi advises. Source
  16. Huawei: Don’t Worry, Facebook and WhatsApp Will Still Work on Our Phones One of the effects of the Huawei ban announced by the United States government in mid-May is that the Chinese tech company can no longer install apps developed by American companies on its devices. And these include not only operating systems like Android and Windows, but also other apps developed by Facebook, like the social network app, Instagram, and WhatsApp. Facebook recently confirmed that it would comply with the US government order, suggesting it would indeed forbid Huawei from installing its apps on new devices. “We are reviewing the Commerce Department’s final rule and the more recently issued temporary general license and [are] taking steps to ensure compliance,” the social network said. However, Huawei says this won’t happen. According to the government ban, Huawei can continue offer software developed by American companies on devices that are already on the market, but on the other hand, it’s not allowed to use it on new models. Huawei’s app store However, the Chinese firm says this apps like Facebook, WhatsApp, and Instagram will work just fine even on the new smartphones that it’ll launch in the coming months. In a statement for AA, Huawei explains that what it wants “is to ensure consumers know that this has no impact on existing devices, and future devices will still be able to download, install, and use Facebook apps without any issue on Huawei devices.” In an attempt to survive without American products, including here Android, Huawei is developing its own operating system that would also support apps developed for Google’s operating system. Huawei is investing hard in an app store to replace Google Play Store, and there’s a chance the company is betting big on this alternative to continue offering apps like Facebook and WhatsApp even on new devices. The new OS is projected to be finalized this year in China and in 2020 for international markets. Source
  17. American Companies Want European Partners to Boycott Huawei Huawei’s struggle to survive without software and hardware from American companies is going from bad to worse as the Chinese tech giant is hitting another roadblock in Europe. According to a report, some US-based firms are pressuring partners on the Old Continent to stop doing business with Huawei, including here the selling of goods to the Chinese firm. A report from WindowsUnitedreveals that 3M is one of the companies embracing this approach, as resellers in Germany have recently been told to stop selling their products to Huawei. Known for its adhesive tapes, 3M is a US-based company with a strong brand presence in Europe, so the decision to forbid Huawei to use its goods is likely a major blow. Neither 3M nor Huawei offered an official comment on this alleged ban, but this is nothing the Chinese company hasn’t anticipated. Chinese parts, the only way to go Huawei said earlier this year that it was fully prepared for the United States government banning it from using American products, and this is one of the reasons it started the development of its own operating system. According to the executive order signed by President Donald Trump in May, Huawei can no longer use software and hardware produced by American firms, and these include operating systems like Android and Windows. In other words, Huawei’s only option is to rely as much as possible on components produced domestically, and this is what the company is trying to do right now with the operating system. In the short term, however, Huawei is already struggling, and the company has recently revised its shipping estimates as it expects a drop to be recorded in the second half of the year. It remains to be seen how this is going to change in the long term, but right now, the bad news for Huawei keep coming not only from the US but also from the rest of the world. Source
  18. Huawei Reportedly Admits Dealing with the US Ban Isn’t As Easy As It Claimed Huawei originally said that the executive order signed by US President Donald Trump and banning the company from working with American firms wouldn’t have any impact on its smartphone shipments because it was already prepared for such a decision. But as it turns out, dealing with such a large-scale ban isn’t an easy thing even for a company the size of Huawei, as the Chinese tech giant is now reducing smartphone shipment estimates following the ban. In other words, Huawei now expects to sell fewer phones, and according to a report from Nikkei, the company believes its sales would drop by as much as 30 percent in the second half of 2019. Furthermore, people familiar with the matter said Huawei has already reduced orders at its major suppliers, as the company anticipates difficult times in the next months because of the US ban. Overtaking Samsung not very likely now Meanwhile, the Chinese firm continues to work on the operating system that could help it deal with one of its biggest struggles following the US ban: the lack of a platform to power its devices. Neither Android nor Windows can be installed on devices launched by Huawei, so the company has no other choice than to build its own operating system to power phones and PCs. Codenamed Hongmeng and likely to launch as Ark OS, this operating system is expected to be finalized in just a few months to be installed on phones sold in China. However, given the international launch is only planned for 2020, the impact on smartphone shipments could be bigger than originally anticipated. It goes without saying that the US ban isn’t only affecting Huawei, but also many of its suppliers. Huawei is currently the second largest smartphone producer in the world, and it originally planned to overtake leader Samsung by the end of 2020. Recently, Huawei officials said the company might have to reassess this goal, as the US ban could affect its smartphone sales worldwide in the short term. Source
  19. Meng Wanzhou is currently on bail in Vancouver. Huawei CFO Meng Wanzhou is set to attend court on January 20, 2020 to appeal against her extradition to the United States, according to court documents. The Canadian government had decided in March to allow the extradition process to move forward. "The decision follows a thorough and diligent review of the evidence in this case," the Department of Justice Canada said in a release at the time. "The Department is satisfied that the requirements set out by the Extradition Act for the issuance of an Authority to Proceed have been met and there is sufficient evidence to be put before an extradition judge for decision." In the United States, Meng is currently facing an indictment for allegedly misrepresenting Huawei's ownership and control of Iranian affiliate Skycom to banks, which breached UN, US, and EU sanctions. Separately, Meng is also seeking a stay of extradition proceedings on several grounds, including allegations that she was denied her constitutional rights when the Canada Border Service Agency had taken her electronic devices and viewed its contents under the pretense that it was routine immigration check before she was arrested, according to Bloomberg. Meng is also alleging that the United States' actions are politically motivated, citing comments by US President Donald Trump. These allegations are similar to ones that were made by the Huawei CFO in a civil lawsuit in March. Meng, who is also the daughter of the founder of Huawei, was arrested in Canada on December 1 and is currently on bail in Vancouver. Tensions between Huawei and the United States have been running high, especially after the US government put the company on its Entity List, which requires US companies to gain approval from government to sell equipment to Huawei, effectively banning any interactions between US firms and Huawei. Shortly after Huawei was put onto the Entity List, Google pulled Android support from Huawei. UK semiconductor giant Arm has also instructed its employees to suspend work with Huawei, while Taiwanese telcos Chunghwa Telecom and Taiwan Mobile and Japanese telcos SoftBank and KDDI have pulled back the sale of Huawei's new handsets due to Google's decision. Source
  20. Huawei tests 5G downloads in China as government due to issue licenses Huawei is also scheduled to ship its foldable 5G smartphone, the Mate X, this month. Chinese technology giant Huawei has tested the 5G download on its upcoming foldable phone, the Mate X, after the Chinese government announced that it will soon release 5G licenses nationwide, which is believed to largely benefit local telecom equipment vendors including Huawei and ZTE. The download rate through a 5G network has exceeded 1Gbps on the latest Huawei handset. He Gang, head of Huawei's smartphone division, carried out the test at Huawei Shanghai Research Institute, a video shared by the company on Tuesday shows. Huawei's Mate X, which supports the auto switch of 2G, 3G, 4G, and 5G networks, could achieve downstream speed of 1Gbps and upstream speed of close to 100 Mpbs, according to the demo. The test came a day after the Ministry of Industry and Information Technology announced that it will "soon grant 5G licenses for commercial use" on Monday. The country's telecoms regulator did not unveil any details apart from the one-line announcement. The market generally expects that the three largest telecom operators of the country, China Mobile, China Telecom, and China Unicom, will give out most their contracts for building up local 5G networks to the two local telecoms equipment giants, Huawei and ZTE. "We are looking forward to the commercialization of 5G networks and Mate X, which will allow users to experience good products and networks," Huawei's consumer business group head Richard Yu said on his Weibo account on Tuesday, commenting on the 5G demo. Huawei, which showcased its Mate X during MWC in Barcelona earlier this year, is scheduled to ship the foldable product this month as planned, the company told media in April, after Samsung postponed the shipment of Galaxy Fold due to serious problems with the screens. Huawei's Mate X is equipped with the world's first 7nm 5G multi-mode modem chipset Balong 5000 which could support "unprecedented 5G download speeds", Huawei said in a press release. Source
  21. (Reuters) - Huawei Technologies, the Chinese telecommunications equipment supplier fighting a U.S. sales ban, kicks off a trade secrets lawsuit in the United States on Monday against a former employee who has sought to turn the case into a referendum on Huawei’s corporate behavior. The trial, involving salacious allegations of corporate espionage, racketeering and a secret database of rivals’ technology, promises to keep Huawei in the spotlight amid a U.S. blacklisting and pressure on allies not to buy its networking gear over security concerns. Jury selection begins on Monday in a federal court in Sherman, Texas, with the trial expected to last about three weeks. The judge in the case, Amos Mazzant, is also separately hearing Huawei’s bid to overturn the Trump administration’s ban on its sales to government agencies and contractors. Huawei’s lawsuit against former employee Ronnie Huang and his startup, CNEX Labs Inc, claims an “an illegal pattern of racketeering” by the ex-manager to steal its technology and poach its staff, according to court documents. CNEX develops chips that speed up data storage on cloud computing networks. Huang denies wrongdoing and has filed a countersuit, alleging Huawei is using U.S. courts to acquire his and others’ technology and quash rivals. Huawei seeks “many tens of millions of dollars” in damages and rights to about 30 trade secrets and CNEX patents, according to a spokesman for the Chinese tech firm. Among Huawei’s claims, it says another Huawei employee downloaded some of its secrets before he joined CNEX. “Huawei proved a springboard for (Huang) to succeed where he otherwise could not have,” the spokesman said. The case had nothing to do with tensions over the U.S. blacklist, he said. “This is not a U.S. versus China case,” said the spokesman. Huang started CNEX in 2013 and has raised more than $100 million from backers including arms of Dell Technologies and Microsoft. A Huawei official posed as a potential buyer and the company used ties to a Chinese university to gain access to CNEX designs, Huang’s countersuit claims. Among its accusations: Huawei rewarded staff for stealing rivals’ trade secrets and stores the pilfered technology in a secret database for its use. “(Huawei) is a vast competitive-intelligence gathering operation, gathering the intellectual property and trade secrets of the world’s top technology companies,” Matthew Goss, CNEX general counsel, said in an interview. Goss said Huawei’s lawsuit, which includes one of the first claims to be heard under the U.S. Defend Trade Secrets Act of 2016, was “weaponizing our courts against U.S. companies.” Source
  22. HONG KONG (Reuters) - China’s Huawei Technologies Co Ltd plans to sell its 51% stake in undersea telecommunications cable business Huawei Marine Systems Co Ltd, according to an exchange filing from the Chinese buyer on Monday. Hengtong Optic-Electric Co Ltd, an optical communication network products company based in Jiangsu province, said in the filing to the Shanghai Stock Exchange that it signed a letter of intent with Huawei Technologies subsidiary Huawei Tech Investment Co Ltd on May 31 to buy the stake via cash and share issuance. It did not mention a price. Huawei Technologies declined to provide immediate comment when contacted by Reuters. Trading of Hengtong Optic-Electric shares was suspended on Monday pending deal discussions. The potential sale comes as Huawei Technologies’ main business of selling telecom network equipment and smartphones is under intense global scrutiny as the United States alleges its products pose a security risk. Huawei has denied the allegations. Last month, Huawei was slapped with a trade ban by the U.S. Commerce Department that threatens to significantly disrupt its supply chain, though it has since been given a temporary reprieve. In March, The Wall Street Journal cited U.S. security officials as saying that undersea cables built by Huawei could be vulnerable to espionage by the Chinese state, which the company denied. Huawei Marine, established in 2008 as a joint venture with Britain’s Global Marine, is mainly engaged in the construction of global undersea communications cables. According to Huawei Technology’s annual report, the tech giant gained majority voting rights on the board of Huawei Marine in August 2018 with Global Marine retaining a 49% non-controlling interest. Huawei Marine contributed revenue of 394 million yuan ($57.10 million) and logged a net profit of 115 million yuan in 2018, according to Huawei Technologies’ annual report. Source
  23. SHANGHAI (Reuters) - The Institute of Electrical and Electronics Engineers (IEEE) said on Monday curbs on employees of Huawei Technologies and its subsidiaries have been lifted, and they would be allowed to participate in a peer review process for its research papers. The U.S.-based engineers’ association last week said it would bar Huawei staff from doing so, after the United States accused the company of being tied to China’s government and effectively banned U.S. companies from doing business with it for national security reasons. IEEE China said in a statement on its website it had decided to lift the restrictions after receiving further clarification from the U.S. Department of Commerce. “Our previous restrictive approach was wholly meant to protect our volunteers and members and to avoid relevant legal risks. After we received the relevant instructions, the legal risks were lifted,” it said. On Thursday, IEEE confirmed the restrictions and stressed that the curbs applied only to Huawei employees and peer review. It added that Huawei employees can continue to submit papers for publication and participate in the IEEE’s conferences. IEEE’s move last week was met with strong responses from China’s academic community. On Thursday, Beijing-based technology research group The China Computer Federation (CCF) said it would suspend communications with IEEE. One Peking University professor, Zhang Haixia, announced on social media that she would resign from the organization as a result of the restrictions. Source
  24. It might be preparing itself for a long slog. Huawei may be expecting to live with a US ban for a long time. South China Morning Post sources claim Foxconn has stopped Huawei phone production on "several" lines in response to reduced orders. It wasn't certain if this was a short- or long-term cut, but it came just months after Huawei's growing demand reportedly prompted Foxconn to go on a hiring spree. Foxconn declined to comment, and Huawei hadn't initially responded to requests for comment. Provided the report is accurate, it would signal an abrupt end to Huawei's runaway growth. Not that the company might have much choice when US companies can't work with the firm unless they have explicit permission. Without official Android support (and thus official Google apps) or the backing of hardware partners like Qualcomm, Huawei's phones won't be as appealing outside of China. So long as the US ban lasts a significant amount of time, Huawei has to either dial back expectations or risk ending up with loads of unsold stock. More on this at [ TechCrunch ] Source
  25. Apple Analyst Predicts Nightmare Decline for Huawei Without Own Operating System Huawei is currently developing its very own operating system after being banned from using products developed by US companies, including here Android and Windows, and a top Apple analyst says the Chinese tech giant should finalize this project as soon as possible. Ming-Chi Kuo of TF International Securities, who has until now offered reliable scoops on the mobile market, says Huawei’s shipments this year could drop no less than 180 million units from 270 million units if the company doesn’t launch its operating system in 2019. Furthermore, there’s the risk of this operating system not being able to replace Android, in which case the drop is very likely as well. If Huawei does manage to make the OS a worthy replacement to Android and bring it to the market by July, shipments could drop only to 240 million or 250 million units. On the other hand, both Samsung and Apple are likely to win big following Huawei’s struggle. Kuo says Samsung sales could increase from 290 million units this year to 300 million or 320 million units. Apple could also return to approximately 200 million units.Open-source operating systemKuo, however, recommends Huawei to plan in the long term, and the operating system that it develops shouldn’t be just a temporary alternative to Android. This means the company should collaborate with the Chinese government and encourage other local phone manufacturers to install the same operating system on their devices. “Let the own OS be an open source OS. The Chinese government could offer incentives to encourage major Chinese companies (e.g., key internet service providers and other Android brands) to work together to build ecosystems,” Kuo notes. Eventually, the analyst warns that Huawei should keep an eye on brand trust, as the US scandal can significantly affect sales. “We think the most important impact would be losing brand trust if Huawei couldn’t offer stable shipments due to the U.S. export ban. The motivations of customers (consumers and operators) to buy Huawei products might be lower due to unstable shipments. Also, component suppliers may have a concern about offering differentiation services (e.g., customized components). It’s not easy to save brand trust if it’s gone. Even if the U.S. cancels the export ban, customers may not turn back and buy Huawei products,” he says. Huawei originally said its operating system could go live by the fall, while the international launch is scheduled for 2020. Source
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