Confident of staying in the 5G race, says Huawei India CEO David Li

Multinational technology major Huawei has said there’s been no official communication from India so far on keeping Chinese companies out of 5G or any other telecom services in the country. In an interview with Business Standard, Huawei India CEO David Li said, "We are confident that we will be part of the game."

The Shenzhen-headquartered firm, which has been facing the fallout of the ongoing geopolitical situation, believes it would continue to participate in India’s telecom journey that it has been a part of for 20 years.      

"There’s been no clear communication, no official ban," Li said. While emphasising a level playing field, he said Huawei was not just a cost-effective company but also a high-tech global leader. The confidence that Huawei would have a role in the upcoming 5G play comes from "having a clear record in terms of compliance, value creation, and local contribution,’’ said the CEO, who’s been in India in different roles over the years.

Last month, the Union government issued a security directive for the Indian telecom sector amid tension with China at the Ladakh border. The directive, without naming any country, mandated scrutiny of telecom equipment and networks, while stating that there would be a list of trusted sources and products from the government. The licence norms for telcos are also expected to be amended.  

Li elaborated on the challenges of 2020, listing Covid-19, lockdown, and geopolitical issues as the main factors for uncertainties in business. "Even though 2020 was very challenging, we exceeded our targets,’’ he said, pointing out that the company was leading worldwide in 5G, R&D, and patents, among other areas.

On whether geopolitical issues would be resolved this year, Li said, "Definitely. Those developments are unfortunate and are out of our control." He reiterated that just as in 2020, the company would focus on its strategy. As for India business, the company said it had to make staff "adjustments" in some departments due to the upheavals last year, adding that there was hardly any downsizing. Of the 6,000-odd employees that the company has in the country, around 95 per cent are Indians, according to officials.  

Li praised Prime Minister Narendra Modi’s leadership, including the made in India and self-reliance plans. But, isn’t the atmanirbhar scheme hurting Chinese companies such as Huawei? To that, Li said, "Every country has the right to develop its economy… Made in India should not be seen as being exclusive…It should be inclusive with focus on global cooperation." 

Whether it’s made in India or made in China, countries should embrace global corporations, he said. "You need an open mind. Embrace foreign investment to bring capital, technology and management skill. Cultivate the ecosystem. This very healthy development is here in India."

According to Huawei, the company has a long-term commitment in India. On engagement with the government on the various tricky matters, Li said, "Whenever there’s a chance, we make our point that we have a good record and we create value…Also, we are here as a big contributor and are fully  compliant."

What, according to him, would be the high point of 2021? Would it be 5G? "While the road map of 5G auction is still uncertain, we will be engaged with stakeholders," Li replied.

If the changed US regime would mean better days for Huawei, Li said, "We will only focus on our own strengths, whatever the challenge." He added however that the new regime was expected to be friendly and ultimately that would benefit the clients and customers.