Huawei to Build 5G Network for Russia’s MTS

IndraStra Global

Huawei to Build 5G Network for Russia’s MTS

By IndraStra Global News Team

Image Attribute: Press statements by Chinese President Xi Jinping and Russian President Vladimir Putin following Russian-Chinese talks. / Dated: June 5, 2019 / Source: Kremlin

Image Attribute: Press statements by Chinese President Xi Jinping and Russian President Vladimir Putin following Russian-Chinese talks. / Dated: June 5, 2019 / Source: Kremlin

On June 6, 2019, one of Russia’s largest mobile operator MTS has signed an agreement with Huawei to deploy latter's 5G technology in Russia.

The 5G deal was one of several cooperation agreements signed after talks on Wednesday between President Vladimir Putin and Chinese President Xi Jinping in Moscow. The Kremlin website lists the deal as a “memorandum of understanding.”

“We are very pleased to conclude a new agreement with MTS, especially in such a strategically important area as the development of 5G,” said Huawei Chairman Gou Ping. “The fact that the ceremony was attended by the President of Russia and the Chairman of the People's Republic of China once again proves how important partnership for technology is for Russia and China.”

According to MTS' statement, "the development of 5G technologies and the pilot launch of fifth-generation networks in 2019-2020".

Last month, the Trump administration banned US companies from selling high-tech equipment to Huawei over suspicions it is spying for Beijing. Several companies have already distanced themselves from Huawei, including Google, whose Android system equips the vast majority of smartphones in the world.

Just after that announcement, technology stocks tumbled across. This led U.S. Commerce Department to restore Huawei's ability to maintain its network, according to a 90-day temporary general license issued by federal officials. This license actually threatens the survival of the company in the coming 3 months, which is highly dependent on US chips for its phones.

PARALLEL DEVELOPMENT


Just 3 days ago (on June 3, 2019), Huawei's Russian subsidiary i.e., Hong Kong-based Huawei Digital Technologies purchased the intellectual property rights to facial recognition systems designed by Moscow-based Vokord, developer, and manufacturer of high-tech security technology.

According to sources close to the deal, some employees of Vokord will also be transferred to Huawei as part of the US$ 50 million agreement, according to sources close to the deal. The newly formed firm will reportedly be called Igl Softlab.

With reporting by BBC, Reuters, Russia Today, and TASS