Touting the high speed of 5G, Ericsson says the new wireless technology can introduce a multitude of new applications, but the cybersecurity controversy is leading to uncertainty and a general slowdown in the market.
Because so much more could be connected via 5G networks, security inevitably would come up as a frequent topic, said Ericsson Group’s president and CEO Borje Ekholm.
Ericsson, so far, had seen little impact on on its books but there had been a general slowdown in the market, in particular in Europe.
The US government has accused Chinese vendors, namely Huawei, of sharing sensitive information with their government and providing access to private US business communications. The Trump administration had called for countries to boycott Huawei’s telecommunications systems, specifically its 5G equipment.
Ekholm said security controversy associated with Huawei has led to uncertainty in the market. Organizations, he said, were taking longer to make investments since it would be costly to make infrastructure changes once a technology provider was appointed.