Huawei Ban Will Make Brazilians Pay Dearly for 5G

Sanction would be a bad sign and would compromise investments in the country, says company president in Brazil


Huawei, the target of a global dispute between the U.S. and China, is at risk of being banned from equipment for 5G networks in Brazil due to a strategic alignment between Jair Bolsonaro and U.S. President Donald Trump.

If this happens, the fifth generation technology implementation would take up to four years because a significant amount of the equipment would have to be changed, said Sun Baocheng, president of the Chinese company in the country, in an interview with Folha.

For him, digital transformation will suffer. "It will increase the operator's costs, and the operator's costs will be transferred to consumers. Brazilians will pay a higher price for [5G] services."

SÃO PAULO - SP Sun Baosheng, president of the Chinese company in Brazil. (Foto Danilo Verpa/Folhapress, MERCADO) - Danilo Verpa

The executive estimates that Huawei covers 40% to 50% of Brazil's telecommunications area, in which it has participated since the privatization in 1998.

Asked about a possible Chinese retaliation, Boacheng says that Brazil's choice should not be between the United States or China. "Free market is not only important for Huawei, but also for other foreign companies."

Translated by Kiratiana Freelon

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