Simon Segars, Arm chief executive, said on Thursday during the Mobile Congress in Barcelona that Europe is behind other nations in terms of 5G development and it might be "detrimental to Europe's GDP growth". According to the GSMA, a telecoms trade body, the mobile industry will contribute about 4.1 percent or €720 billion to Europe's GDP by 2020.
The arm is owned by the Japanese tech giant Softbank but it is based in the United Kingdom. The company signed a deal with Vodafone at the conference to develop smartphone chips to be integrated with a mobile SIM card.
Segars along with other American telecom companies warns about the effect of banning Chinese firms including Huawei in the European networks. Telecommunication companies all around the world are publicly announced their disagreement in the banning of a company from any market because of its effect on the business flow globally.
The United States claims that Chinese firms including Huawei and ZTE steal government and trade information through backdoor software to send the data to China. Huawei is the leading 5G developer all over the globe. The western nation called for the boycott of Huawei products. Last year, Huawei's CEO was detained in Canada as influenced by the United States. The United States and its allies announced that they will ban Huawei products from entering their markets.
However, Chinese firms found a new strategy to expand their operations away from the risks of the United States influence. Chinese firms started to reach out to the European market for their smartphone products. Many members of the European Union welcomed the Chinese firms and announced their readiness to make a deal with Huawei in developing their 5G network.
According to Nick Read, Vodafone chief executive on Monday, the continental roll-out of the 5G network in Europe might be delayed by another two years if Huawei was to be removed from existing 4G networks and if their equipment for the 5G networks is banned. He also said that to ban Huawei in Europe is a structural disadvantage. He pointed out that the United States doesn't have that problem because they don't put Huawei equipment in.
Huawei and the other Chinese firms deny the allegations against them and claimed that the accusations were made to eliminate them from the global market since they pose a great threat to their competitors.
