Malaysia's Axiata to pick two 5G vendors, in move that could curb reliance on Huawei

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Axiata Group Bhd, Malaysia's third-biggest telecom operator by subscribers, said it would select two equipment suppliers to roll out 5G services, opening the door for the likes of Ericsson to fight it out with dominant player Huawei.

FILE PHOTO: A woman walks past the Axiata headquarters building in Kuala Lumpur, Malaysia, October 1, 2019. REUTERS/Lim Huey Teng

Huawei Technologies [HWT.UL], the world’s top telecoms equipment maker, has been a long-time vendor for Axiata and the two companies have a preliminary agreement to work together on deploying Malaysia’s fifth-generation technology services, slated for later this year. “Generally we like to have two vendors, and in Malaysia, generally it would be these two,” Axiata Chief Executive Jamaludin Ibrahim told Reuters on Saturday, referring to Huawei and Sweden’s Ericsson.

Axiata is confident of securing supplies from Huawei despite the U.S. Commerce Department this month expanding the country’s authority to require licenses for sales to Huawei of semiconductors made abroad with U.S. technology. The United States says Huawei’s equipment can spy on customers, a charge the company denies.

 

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