Huawei’s political troubles are creating apprehension in the market which could dampen the investment climate as operators plan their migration to 5G, Ericsson CEO Borje Ekholm (pictured) told CNBC.
In an interview with the news outlet, the boss of arguably Huawei’s biggest rival said efforts by a number of governments to ban use of the Chinese company’s equipment have sparked “a lot” of concern among operators as they weigh potential impacts and next steps.
The CEO said Ericsson’s sales have hitherto not been affected by the commotion. However, he warned customers are worried and concerned “and that is never good for the investment climate.”
Ekholm also addressed questions about whether scuffles between China and western nations could give rise to competing network architectures, stating it is “really important” for the industry to protect a model of global standardisation.
He acknowledged the possibility of bifurcation remains a danger in the current climate, but concluded “ultimately the economics favour a global standard”.