LG Uplus depends on Huawei technology for its mobile network
Washington’s efforts to boycott Huawei Technologies are worrying LG Uplus, South Korea’s No. 3 mobile carrier that used the Chinese IT giant’s equipment for its fifth-generation (5G) network.
Earlier this month, Washington came up with a new round of sanctions aimed at cutting off Huawei’s access to U.S. technology and markets, while urging its allies to join the move.
Japan’s SoftBank and Denmark’s DTC already opted to sever their dependence on Huawei. In addition, the U.K. reportedly plans to take part in the anti-Huawei campaign.
However, LG Uplus refuses to follow suit because of the compatibility issue. The carrier is an affiliate of LG Group, one of the largest South Korean business conglomerates.
“We adopted Huawei technology for the previous network of Long Term Evolution. We decided to take advantage of Huawei technology for our 5G network in consideration of compatibility and cost-effectiveness,” an LG Uplus official told UPI News Korea.
Prof. Shin Min-soo at Hanyang University in Seoul also expected that LG Uplus would continue to rely on Huawei.
“LG Uplus would not be able to scrap Huawei. If LG changes equipment, it would suffer from problems related to optimization,” Prof. Shin said.
Against this backdrop, Prof. Yang Joon-mo at Yonsei University predicted that LG Uplus might in be big troubles.
“Amid criticism over China’s responsibility for the COVID-19 outbreak, LG Uplus is feared to experience hardships in the future,” Prof. Yang said.
“The U.S. is attempting to make a new cooperative system where Japan and the U.K. participated. Southeast Asian countries and India would also be part of the system. Even Australia, which is close to China, is likely to join the new global value chain.”
By comparison, two bigger rivals of LG Uplus _ SK Telecom and KT _ do not use Huawei technology for their 5G networks.
UPI News provides this article. _ ED.