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5G Focus: Huawei's potential sale; Ericsson's partnerships; rollout in Hungary

5G Focus is a weekly global roundup of notable 5G trials, launches, use cases and major equipment supply contracts. It will also feature in-depth analysis of strategies, expansion plans, business models and other related initiatives.

Last week saw Huawei Technologies Co. Ltd. unveiling plans to sell its 5G technology to a Western buyer, as Swedish company Ericsson touted 5G tie-ups with three telecom operators and two tech companies. Meanwhile, Hungary expects to deploy commercial 5G before year-end.

Chart Watch

Apple's latest iPhone is not 5G compatible but could boost the company's emerging services business nonetheless, analysts told S&P Global Market Intelligence. "While we understand iPhone units (and sales) will remain muted through FY20 (5G launch), the narrative has and continues to shift towards services and a higher mix of recurring revenue for Apple," Evercore ISI analyst Amit Daryanani wrote in a Sept. 8 research note.

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AT&T, Verizon execs question DISH's readiness to compete in US wireless market: AT&T Inc. and Verizon Communications Inc. executives questioned whether DISH Network Corp. would be ready to launch competitive next-generation wireless services, as the two carriers detailed plans for deploying 5G networks.

US AND CANADA

* The United States warned its Gulf allies about the risks attached with using Huawei's technology for the countries' 5G mobile infrastructure, Reuters reported Sept. 12. Robert Strayer, the U.S. State Department's deputy assistant secretary for cyber, international communications and information policy, said the U.S. "shared a message about the importance of securing 5G technology and applying risk-based security principles."

* Ericsson and Qualcomm Inc. unit Qualcomm Technologies Inc. jointly trialed a stand-alone 5G data connection, which complied with global 3GPP 5G New Radio specifications, according to a Sept. 12 statement. The test involved the use of Ericsson's technology with a mobile test device containing Qualcomm's Snapdragon X55 5G Modem-RF System.

* Ericsson said Sept. 10 that it signed a deal with Nex-Tech Wireless LLC on Voice over LTE and Wi-Fi calling services, as well as enabling 5G capabilities in some areas in the U.S. state of Kansas.

ASIA-PACIFIC

* LG U+ signed a memorandum of understanding with Kakao Mobility to cooperate on 5G-based future smart transportation services, Digital Daily reported Sept. 15. The two companies plan to launch a joint task force under which LG U+ will develop services and infrastructure and provide technical support, while Kakao Mobility will develop a user-friendly service platform and provide relevant information.

* China Mobile Ltd. will purchase 250,000 5G devices from Huawei, including 50,000 Mate 20 X 5G phones and 200,000 5G customer premises equipment, C114 reported Sept. 13.

* Indian Telecom Minister Ravi Shankar Prasad said that the country's 4G and 5G spectrum auctions will take place at the end of 2019 or in early 2020, The Economic Times reported Sept. 13.

* Huawei may sell its 5G technology to a Western buyer in a transaction that could be valued at tens of billions of dollars, The Economist reported Sept. 12. Huawei CEO Ren Zhengfei said the Chinese company would offer the 5G technology, including patents, licenses, codes, technical blueprints and production knowledge, for a one-time fee through the transaction.

* Thailand's minister of digital economy and society met with the National Broadcasting and Telecommunications Commission to discuss plans for setting up a 5G strategy committee to ensure that the new network technology is launched in 2020, Thai PBS reported Sept. 12.

* China Unicom (Hong Kong) Ltd. unit China United Network Communications Corp. Ltd. entered into a framework agreement with China Telecom Corp. Ltd. to co-build a 5G access network in China. As part of the "co-build, co-share" partnership, the companies will delineate and designate districts in 15 cities for the construction of the 5G network.

* KT Corp. plans to develop a platform that combines autonomous driving technologies with cloud technologies, ZDNet Korea reported Sept. 10. The plan is to integrate its precision location technology, Vision GPS, in the cloud-using 5G network.

* Advanced Info Service PCL signed a memorandum of understanding with Bosch to collaborate on exploring industrial-scale uses for 5G and internet of things-based technology. The agreement also promotes knowledge sharing between the two companies.

* Singtel Optus Pty. Ltd. chose Hughes Network Systems LLC's JUPITER system as its satellite platform to offer next-generation services to customers in Australia, according to a Sept. 10 statement. Under their multiyear agreement, Optus Satellite will buy JUPITER System equipment to extend 3G and 4G services, lay the foundation for 5G, power enterprise services and deliver mobility services for maritime vessels throughout Australia and New Zealand.

* Thailand-based telco Total Access Communication PCL partnered with Ericsson to launch an internal 5G test center at its Never Stop Café for employees, according to a Sept. 9 blog post. The center uses the 28 GHz band and has already reached download speeds of over 1.8Gbps.

EUROPE, MIDDLE EAST AND AFRICA

* Russian Communications Minister Konstantin Noskov plans to push for further talks over the use of the 3.4-3.8 GHz band for 5G services in a meeting of the state radio frequency commission, Telecompaper reported Sept. 13, citing Interfax. While some fixed operators already hold some of the spectrum in the frequency range, a final decision on what to do with the rest of the band is still pending.

* Altice Portugal SA teamed up with Ericsson to simulate a rescue operation in the city of Aveiro using 5G technology, according to a Sept. 12 statement. Meanwhile, the Altice Europe unit slammed Portugal's National Communications Authority for proposing a six-month gap in its 5G rollout between the Portuguese mainland and the Azores/Madeira autonomous region, Telecompaper reported Sept. 12, citing Jornal de Negocios.

* The U.K. will "soon" make a decision on whether to allow Huawei in the country's 5G network build-out, but will expect a "code of behavior" from China if the equipment-maker would be allowed to participate, Reuters reported Sept. 11, quoting British Defense Secretary Ben Wallace.

* Telefónica SA is teaming up with Spanish ICT development agency Red.es to conduct 5G trials in Spain's Galicia region, Telecompaper reported Sept. 11. The project will get a total investment of €11 million for eight 5G use cases.

* Orange Polska SA partnered with Ericsson to activate a live 5G test network in Warsaw, according to a Sept. 10 statement. The Orange SA unit, which invited customers to trial 5G services over the network, aims to launch commercial 5G services in Poland by the 2020-2021 period.

* Nokia Corp. said Sept. 10 that it agreed to conduct joint 5G field trials with NTT Docomo Inc. and OMRON Corp. The trial aims to establish the possibility of a layout-free production line with autonomous mobile robots.

* Hungary may roll out commercial 5G services in the country before year-end, Reuters reported Sept. 10, quoting International Telecommunication Union Secretary General Houlin Zhao. Meanwhile, Laszlo Palkovics, Hungary's minister in charge of innovation and technology, said the government hopes to complete 5G spectrum tenders by October.

* Telefónica teamed up with European vehicle inspection company DEKRA eV and the Andalusia regional government to create an open innovation testing and certification center for 5G-based vehicle-to-everything technology in the city of Malaga, Telecompaper reported Sept. 9.

* Russian national operator Rostelecom PJSC paid 250 million Russian rubles for its acquisition of St. Petersburg-based company Telecommunications Service, which owns frequencies in the 3.4-3.8 GHz band that could be used for 5G services, Telecompaper reported Sept. 9, citing Cnews.ru.

Featured Research

Global Markets Update — France: Orange and French public broadcaster France Télévisions SA partnered on the first live 8K over 5G trial, while Iliad SA's Free made a heavy push on fiber, 4G and 5G networks following subscriber losses.

Expanding mobile connectivity through nonterrestrial networks: The global mobile industry is concerned with allocating new spectrum in the millimeter wave bands between 24.25 GHz and 86 GHz, including some portions of the 26 GHz and 28 GHz bands that are used for 5G.

North American premium smartphone demand sagged in Q2'19: Apple Inc., Samsung Electronics Co. Ltd. and LG Corp.'s second quarter smartphone shipments to North America declined from year-ago figures, despite 5G adoption steadily spreading in the U.S.

Comcast looks up market for commercial growth: Comcast Corp. continues to take a wait-and-see approach for 5G, with wholesale backhaul for the service expected to generate revenue on a case-by-case basis.

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