Huawei could set up local manufacturing unit for 5G equipment in India

Huawei says it has already used some 5G technologies in existing networks in India. Huawei is confident it will get government approval to participate in 5G trials. Meanwhile, Huawei is also eyeing local manufacturing and says they are studying the government's new policy announcement around corporate tax reduction and incentives for setting up local manufacturing units.

"We have used some 5G technologies and deployed in 4G networks to increase efficiency with low capex. I am very confident of getting 5G permission. India will welcome good product and good innovation," Huawei India CEO Jay Chen said.

Huawei plans to set up a manufacturing unit in India

On plans to set up a telecom equipment manufacturing unit in the country, Chen said, "Now I am only thinking about how to use my strength to grow India business. After government has announced new policy, we are seriously studying the policy how to use it and support local manufacturing. The impact that it can have on cost structure, etc. We are working on the (manufacturing) plan."

The government slashed the tax rate for companies in September by almost 10 percentage points to 25.17 per cent and offered a lower rate of 17.01 per cent for new manufacturing firms in a bid to bolster economic growth rate from a six-year low by incentivising investments to help create jobs.

Huawei India CEO Jay Chen said on Monday said 5G is becoming much faster than expected. Chen was speaking at the on-going India Mobile Congress in New Delhi. As of today, around 40 5G networks are already commercial while Huawei has powered 28 of these 40 5G networks, Chen said. He also said Huawei has developed enterprise solutions and use case scenarios based on 5G and AI solutions such as smart cities and smart education.

Last week, the Telecom Department (DoT) granted Huawei permission to proceed with 5G use case demonstrations at India Mobile Congress 2019, which is scheduled between October 14 to 16, 2019

Chen recently asserted keeping Huawei out of India's 5G race will be a loss to telecom network operators, users and industry as a whole. India is yet to take a call on allowing Huawei to install its telecom equipment for 5G services due to alleged security concerns. Of late, Huawei is facing a ban from the US on the grounds of national security concerns. Despite all this, Huawei still remains the second largest smartphone brand around the world.

The United States is persuading its allies to block the world's largest provider of networking gear from their new mobile networks.  Meanwhile, the central government has made it clear it will keep national interest in mind while deciding on Huawei's participation in India's 5G trials.

(With PTI inputs)