The industry segments Huawei is targeting in Latin America

Chinese telecoms equipment supplier Huawei vows to catch up with its Nordic rivals when it comes to private networks and B2B projects, taking aim at five strategic verticals in Latin America: mining, manufacturing, agribusiness, logistics and infotainment.

Nearly two years ago Huawei signed a MOU with Sul Americana de Metais (SAM), the Brazilian subsidiary of Chinese group Honbridge Holdings, for the development of 5G-powered autonomous operations at a yet-to-be-built US$2.1bn iron ore complex (Block 8), in Minas Gerais state.

The environmental licensing process for Block 8 has taken longer than originally expected.

“The project basically did not move forward, and this is because the complex itself has not yet gotten off the ground,” integrated solutions director Carlos Roseiro told BNamericas during an event at Huawei’s headquarters in São Paulo.

As Gizelle Andrade Tocchetto, SAM’s director of institutional relations and environmental issues, told BNamericas in this interview, the main reason for the delay is a more stringent approach by the authorities regarding environmental matters.

Meanwhile, Huawei’s Finnish rival Nokia has unveiled mining projects in Peru, at the Las Bambas mine, and in Brazil, at Vale’s Carajás mine. Both networks are being deployed over Telefónica's wireless network.

In Chile, Nokia and América Móvil's Claro are deploying a private wireless network for Minera Gold Fields' Salares Norte mine, while South African multinational AngloGold Ashanti is working on a standalone 5G private cellular network at its Quebradona mine in Colombia with Nokia and Millicom.

Mining is also one of the verticals that another Huawei competitor, Sweden’s Ericsson, is targeting in Latin America, along with agribusiness, logistics, railways and manufacturing

Roseiro said that many of the talks end up involving mining companies and telcos, with Huawei coming in later. And he added that a range of initiatives are conducted in an experimental phase.

This is the case of a technology solution being developed by Huawei and Brazil’s tech institute Senai Cimatec, which is said to be able to identify through 5G-connected cameras whether people are entering hazardous areas inside the mining pit and also detecting gas leaks.

In the manufacturing segment, Huawei opened a local Electronic Manufacturing Service factory in Jundiaí, São Paulo state, which the company says is the first plant in the country that uses 5G in applications for the production process.

The company installed 14 5G antennas to connect an area of 30,000m², where electronic equipment such as base radios and processor and controller boards are produced.

The site was equipped with AI, cloud and IoT technologies, which made production more efficient and increased productivity, according to the company.

Furthermore, at Huawei's warehouse in Sorocaba (São Paulo) robot carts pick up and move goods autonomously through connection to a private network.

Huawei also teamed up with TIM to deploy a private 5G network at carmaker Stellantis’ plant in Pernambuco state. The project is for a video analytics application powered by AI that supports quality control in the attaching of car emblems. 

The network is deemed to be the first of its kind in Latin America’s auto sector.

TIM and Huawei also inked a deal to develop a smart city project in Curitiba, the capital of Paraná state.

In agribusiness, Huawei has developed pilots for a 5G network with Claro Brasil in Rio Verde, Goiás state, to support drones capturing high-resolution images for precision farming.

In the infotainment segment, the company is involved in initiatives to broadcast games and live events through 5G networks, which would allow for real-time immersion by viewers, in addition to better resolution.

SUPPLYING TELCOS

As for contracts to supply 5G equipment to mobile operators in Brazil, Roseiro told BNamericas that Huawei is in talks with most of the winners of licenses in November’s spectrum auction, both incumbents and new entrants.

However, many of these companies are waiting for the release of the acquired frequencies before signing contracts with suppliers.

To date, Huawei has been confirmed as 5G supplier of TIM, together with Ericsson. Both were already 4G equipment providers of the telco.

Claro Brasil and Telefônica Brasil have not yet disclosed details regarding their 5G network suppliers, but operators tend to stick with the ones that provide their 4G equipment.

The fiercest competition is expected to be for the contracts with new players, first-time wireless spectrum holders, such as Winity, Brisanet, Unifique and Copel Telecom.

According to Huawei, it is present in more than half of all 3G, 4G and 4.5G networks in Brazil, as well as powering more than 100,000km of optical fibers across the country.