The biggest player in the 5G race is the controversial figure Huawei. China issued the China Mobile 2021 4G/5G Fusion Core Network Procurement tender in order to invite bidders and it turns out that the highest bidder was Huawei.
This is not the first time the 5G giant has backed such a big tender. In fact, it was obvious even before the bidding as Huawei would turn out to be the highest bidder, the next closest rival is ZTE.
Earlier this year, Huawei bagged its first 5G 700MHz main equipment collection tender of a total of 38 billion tenders. This makes the recent win the second-largest 5G list this year. The budget for Huawei’s Core Network purchase also seems pretty overwhelming at a whopping 7.5 billion Yuan.
However, this is only the first time for Huawei where they’ve won the first bid share. But all this was expected as Huawei is the biggest player in the 5G equipment and core network. The price breakup of the deal is such that Huawei equipment is quoted at 6,406.25 million Yuan and a service quotation of 1,082.44 million Yuan.
China Mobile set a maximum bid limit of 6,737 million Yuan for the equipment portion of the tender and for the Edge UPF portion, it was set at 798.7 million Yuan. This adds up to a maximum big limit of more than 7.5 Billion Yuan and Huawei’s quote matches this highest bid limit.
The lack of competitors also gave an edge to Huawei as only the big two, ZTE and Huawei were competing to bag the deal. And considering the capabilities and cap of Huawei, it was expected that Huawei will bag most of the shares, followed by ZTE.
The two companies had a mutual understanding between them and both of them would be enjoying the tenders they have bagged.