Russian president Vladimir Putin and his counterpart Xi Jinping met in Kremlin on June 05, 2019. In a joint statement where many other agreements were signed, both countries announced cooperation in the telecom industry, Huawei secures a deal with Russian telecom MTS to develop network over next year.
“The development of 5G technologies and the pilot launch of fifth-generation networks in 2019-2020”, MTS said in a statement.
Huawei’s survival came to risk after US sanction. The company is highly dependent on US Chips for its phone, many companies including Google have refused Huawei to their services or support. Google’s Android system equips most of the smartphone across the globe. The company eliminated the sudden threat by launching its OS. And ever since, Huawei is looking for new markets and stronger supply chain.
MTS has a stronghold in post-USSR states like Kazakhstan, Kyrgyzstan, Uzbekistan, Turkmenistan, and Tajikistan. The company was already facing a penalty of $850 million in Uzbekistan. MTS was accused of bribing Gulnara Karimov (Daughter of Uzbek president Islam Karimov) for getting the contract of national telecom project. With a ripped reputation, MTS is operating in 5-STANS without any potential competition.
Huawei lost its European market due to its potential involvement in Britain’s 5G network. Prime Minister Theresa May has declined any comments on the issue.
“We confirmed that Russia’s and China’s stances on key global issues are similar or coincide, as diplomats say,” Putin was quoted by Russian news agency Tass. He further added “We stated that they had reached a very high – and without any exaggeration – an unprecedentedly high level,”
Xi Jinping visited Russia on the 70th anniversary of both country’s diplomatic ties. The visit of Xi Jingping also included a formal reception, a performance in Bolshoi Theatre and a visit to St Petersburg for an international economic forum.