U.S. Intervention in Brazil
The United States is prepared to provide financial assistance to Brazil’s four major operators (Claro, Oi SA, Telefonica Brasil SA, and TIM Participacoes) with their purchases of 5G network equipment. This assistance, however, comes with the precondition that these network equipment purchases are from Ericsson or Nokia and not from either Huawei or ZTE. On the flip side, the United States has also expressed that there would be consequences if Brazil decided to utilize Chinese network equipment for its 5G networks.
The four Brazilian operators are confronting a particularly sticky situation. The allure of much-needed financial assistance for the development of 5G networks is counterbalanced by sacrificing the already existing business relationships that the operators have established with Huawei. Huawei has been present in Brazil for the last 22 years and has already helped the four operators carry out successful 5G trials. The exclusion of Huawei from Brazilian networks could potentially increase costs and delay 5G deployments by multiple quarters if not years. In the case of U.K. …
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