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This is a dilemma for European telecommunication companies: should they derogate from competition and quickly roll out next-generation 5G mobile networks with the help of leading provider Huawei's equipment? Or should they take into account warnings from the United States about security threats and sit or even lag behind?
Doing it right will have serious consequences, as 5G networks are the next step in the digital revolution: they offer near-instant connectivity, high data capacity and futuristic technologies.
No operator wants to be left behind, nor do governments who view 5G technology as a key future driver of economic growth.
Huawei, of China, has quietly become a leading provider of back-end equipment for mobile networks, especially in developing markets, thanks to lower prices.
The spearhead of state-of-the-art 5G equipment has also entered the developed markets.
However, a growing number of western states are turning their backs on Huawei, fearing that his equipment will be a Trojan for Beijing's intrusive security apparatus, with Chinese law obliging its companies to cooperate with services. information.
Huawei categorically denies that his equipment can be used for espionage.
While most European governments are trying to get an idea, mobile operators have to choose for themselves, and it's a tough choice.
Several operators have already started testing Huawei equipment, such as Bouygues Telecom and SFR, in several French cities.
"Huawei is now more expensive than its competitors, but it is also much better. They have really progressed in terms of the quality of network equipment compared to their European competitors, "said recently a manager of a European mobile operator under the guise of anonymity.
Experts say that Huawei has between six months and a year ahead of the Swedish Ericsson in terms of the quality of its 5G equipment.
The second mobile network equipment maker, the Finnish Nokia, would be even more late.
Leader 5G
"Many want to avoid the Chinese, but they are currently the most advanced in the region," said Victor Marcais, a specialist in telecoms and media at Roland Berger.
"In the last few years, Huawei has gone from" low-cost "option to" leader in 5G. "
Several sources said that Huawei even helped Nokia in research and development to avoid confronting Ericsson alone in 5G.
Huawei would only say that he has "long-term partnerships" with many of his competitors in areas such as production methods, standards and patents. "We have always championed the principle of open innovation and collaboration to facilitate the development of the telecommunications industry," said a Huawei spokesman.
After establishing itself as an actor on 4G networks, the Shenzhen-based group doubled to dominate the 5G. Each year, it invests between 10 and 15% of its turnover in research and development. It spent $ 13.8 billion on research and development in 2017 and $ 15 billion last year.
The strategy is bearing fruit.
In 2017, Huawei was by far the leading provider of equipment for telecommunications networks, with a 22% market share, according to IHS Markit. Nokia followed with a 13pc share and Ericsson with 11pc.
This gap could widen as more and more operators around the world develop 5G networks, although current geopolitical tensions pose a risk for Huawei to exploit its technological edge.
European ambitions
European countries, like those in Asia and the United States, want a rapid deployment of 5G, with the first services to be operational next year. A difficult goal to reach without resorting to Huawei.
"Regulators and governments have pretty ambitious schedules, while operators see 5G as a way to reduce costs per gigabyte when data volumes explode," Marcais told Roland Berger.
"However, we see in Germany, for example, they are not happy with the way things are going."
Deutsche Telekom, in an internal document obtained by Bloomberg, warned that Europe could take up to two years behind China and the United States if it waived the use of 5G equipment from Huawei.
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