Huawei is a market leader in the global telecommunications infrastructure market, with a revenue share of nearly 30%. It is also the second largest seller in the smartphone market worldwide, with an ambitious goal to beat Samsung by the end of this year. Therefore, when the Chinese company began to face a backlash from the US government and its allies over national security, many analysts believed that Samsung would benefit from it. Fortunately for Samsung, that's exactly where the Indian telecom market appears to be heading.
According to a report published in The Economic Times, India's two largest telecom companies, Vodafone Idea and Bharti Airtel, have begun exploratory talks with Samsung for upcoming 4G and 5G networks amid uncertainty about Huawei's future in the Indian subcontinent. Each of these carriers sourcing their equipment from multiple vendors, but they are looking to reduce their dependence on Ericsson and Nokia as there could be potential supply issues if Huawei is banned in the country.
Samsung already has a strong relationship with Jio
Although Huawei is the supplier to both Vodafone Idea and Airtel, the former has relied more on the Chinese company in recent times. Samsung currently provides telecom equipment to Reliance Jio, the country's third largest and fastest-growing telecom operator. The Korean company is already preparing to capitalize on its strong relationship with Jio when 5G begins rolling out in the country. If uncertainty about Huawei's future persists in the market, other operators may also lean towards Samsung.
5G in India is still a few years away because the government has not sold the spectrum yet. The communications department is said to be divided over whether Huawei should be allowed to be a part of its 5G trials. Given the scale of the fragile and complex Indo-Chinese relations, it is doubtful that the Indian government will be as cruel as the United States over Huawei, but the uncertainty appears to be enough to push many carriers towards Samsung.
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