In what could be vindicated as a vivid illustration of another fatal blow to Chinese tech conglomerate Huawei Technologies, that's had been facing off a flurry of sanctions by the United States government, Madrid-based Spanish multinational telecommunication company Telefonica SA, one the world’s largest telephone operator, had purchased fifth-generation equipment from Swedish telco gear maker Ericsson in a bid to replace some of its older Huawei equipment, a press agency report had confirmed late on Monday citing a source at the Spanish firm who wished to remain anonymous given the scale of sensitivity of the issue. Nevertheless, a local newspaper, Expansion, has had been the first to report the news earlier. Besides, the press agency report also had quoted one of the sources familiar with the subject matter as saying that the replacement of Huawei-built fifth-generation telco gears came forth as a part of Telefonica stratagem, which it had announced back in the 2019s aimed at diversifying suppliers.
Telefonica purchases Ericsson 5G gear to replace Huawei equipment
Nonetheless, as a swathe of US sanctions seemingly have had thwarted operations in China’s Huawei Technology in a majority of G20 economies, Telefonica was forced to seek for alternative supplies, added the Expansion newspaper report citing sources in the Spanish telecom firm.
However, the Telefonica source declined to mention the magnitude of 5G gear replacement what the Madrid-based telecommunication company went through. Besides, the worth of fifth-generation equipment purchased from Ericsson to replace Huawei gears, remained undisclosed, though, the move appeared to have sealed off a lucrative eurozone market for the beleaguered Chinese tech tycoon in a longer term outlook, suggested analysts.