One would think that Huawei would have much to fear from such a merger. The new company will become the Number 2 in wireless behind Sweden’s Ericsson. It will also have a more complete product line encompassing both mobile and fixed-line operations, putting it in a stronger position to compete with Huawei, the leading telecoms equipment maker
But Chief Executive Guo Ping told Reuters welcomed the deal, saying it would spur investment and competition, and expressed optimism about his company’s ability to expand its own network gear business.
He said that the merged company will be much more competitive and for the industry as a whole this is positive.
“This is combining one company that is very strong in the wireless business with another company (that is) very strong in fixed networks,” he added.
Huawei expects lucrative opportunities for its network gear business as more people use smartphones, everyday objects are connected to the web and machines are linked to each other via the Internet, Guo added. He said there could be 100 billion new connections in the next ten years.
He also said that Huawei’s exclusion from the United States over cybersecurity concerns would not stop the company’s growth.
Huawei announced plans for a new research institute in Brussels, signalling its intent to take part in Europe’s race to be at the forefront of the next generation of mobile broadband technology.