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US-Backed Consortium Beats China's for Massive 5G Contract Blanketing Ethiopia (livemint.com) 87

"A U.S.-backed consortium beat out one financed by China in a closely watched telecommunications auction in Ethiopia — handing Washington a victory in its push to challenge Beijing's economic influence around the world," reports the Wall Street Journal: The East African country said Saturday it tapped a group of telecommunications companies led by the U.K.'s Vodafone Group PLC to build a nationwide, 5G-capable wireless network.

The group had won financial backing for the multibillion-dollar project from a newly created U.S. foreign-aid agency. The agency offers low-interest loans, but the financing comes with a condition: the money won't be used to buy telecom equipment from China's Huawei Technologies Co. and ZTE Corp. Washington considers both a spying threat, an accusation the companies deny...

The telecom license auction in Ethiopia took on wider geopolitical significance amid heightened competition between the U.S. and China over key technological pursuits, from the rollout of 5G to chip manufacturing. "The U.S. and China are fighting a proxy war in Ethiopia for influence," said Zemedeneh Negatu, chairman of Fairfax Africa Fund LLC, a U.S.-based investment firm that focuses on Africa. After all but shutting out Huawei in the U.S., Washington has become more assertive about challenging Beijing's economic footprint overseas. It is using new financial tools to win influence and ensure that strategic assets in foreign countries stay in friendly hands...

Backing the Vodafone bid was the International Development Finance Corp., or DFC. The U.S. government-funded agency was created in December 2019 with a goal of offering alternatives to cheap, Chinese financing for foreign infrastructure projects... U.S. law also prohibits its loan from being used to buy Huawei or ZTE equipment, though one person familiar with the matter said it is possible the Vodafone-led bid could still buy some Chinese gear because of the project's size and cost.

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US-Backed Consortium Beats China's for Massive 5G Contract Blanketing Ethiopia

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  • Re: (Score:2, Funny)

    Comment removed based on user account deletion
    • Re: (Score:3, Insightful)

      Comment removed based on user account deletion
      • by tomhath ( 637240 )
        The market is never "free", anywhere. China's unfair trade practices make it necessary for other governments to get involved.
        • Comment removed based on user account deletion
          • by AmiMoJo ( 196126 )

            Buying contracts is a classic move in capitalism. Use capital to bid below cost, so you can get a foothold and keep competitors out.

            I guess Nigeria got a bargain, assuming they don't mind the NSA 0wning their 5G network.

            • The US won Nigeria, too? In any case, it's not really a choice when it comes to spying - you'll most likely be spied on anyway (unless you go the E2E encryption route).
            • > a newly created U.S. foreign-aid agency. The agency offers low-interest loans

              A US citizen paid handout never to be repaid loan to a soon to be overthrown African government.

              Look into how many world bank loans are actually repaid in full and on time at market interest rates.

              This is just a large handout to the leaders of that country and buying their friendship for awhile

          • by tsqr ( 808554 )

            You might want to brush up a bit on China's economic activities in Africa before getting too worked up over US government practices in the region.

      • Do you have problems with reading comprehension?

        Ethiopia is the one doing the paying in this deal.

    • Re: (Score:3, Insightful)

      by AK Marc ( 707885 )
      The US is up to good? Would you like a list of democracies the US has overthrown or invaded? Or would you start arguing how a democracy who selects someone you don't like is "not a *real* democracy".
      • Re: (Score:3, Insightful)

        Overthrown or invaded , what about supported as in the dictators around the world that the US actively supports today. Half or more of the worlds biggest aresholes are there largely thanks for the USA. Im thinking of the Saudis, the Gulf States and thats just the start.
        • Russia and Israel planned to Invade the Middle East to liberate all the oil money. So again, a choice was put before the whole world...
        • Really? How exactly are the states supporting dictators? Selling weapons? You mean to counter the weapons that Russia and China continue to sell to Iran that is then used in terrorist attacks in Europe, Israel, etc?
          The states did not support Syria, Iraq, Libya, etc. That was all done by Europe, Iran, Russia, China, etc.
          But hey, why let facts get in the way of your trolling?
          • > Really? How exactly are the states supporting dictators? Selling weapons? You mean to counter the weapons that Russia and China continue to sell to Iran that is then used in terrorist attacks in Europe, Israel, etc?
            THe worlds main funders for all terrorism today and for the past 50 years has always been the Saudis. If there was no Saudi Royal Family world terrorism would have a fraction of the funds it has today. Irans terrorist activities and funding is nothing compared to the saudis.
            • Saudis have done very little in comparison to ANY of Iran, USSR, China, etc.
              Iran is all over the world, like the others, spreading their weapons and funding terrorists.
              • > Saudis have done very little in comparison to ANY of Iran, USSR, China, etc.
                Tahts simply untrue, the Saudis spend Billions every year on keeping fundamentalism alive. They have spent far more than the USSR ever spent in any form spreading evil communism. Thats hundreds of billions.
                Africa is filled with fundamentalist terrorists running around causing havoc and violence on locals, and most of those get their arms and monies from the Saudis and Gulf States. Where do you think the Somali terrorists ge
    • Why do you say that? It's not like they're even communists.
      This is a win for the Etheopians and they have China to thank for it, even if they didn't choose China in the end.
      Now, of course, they have to put up with American spying, which is well proven and quite sophisticated. Good luck there.

  • by jjaa ( 2041170 )
    Wait... where will Vodaphone get all the equipment again? I missed that part, it might be obvious, but somehow I'm sceptical it made in-house...
    • by k0t0n ( 7251482 )
      There are several telecom equipment manufacturers based in Europe and Asia, though all of them have assembly lines and joint ventures in China
      • Except Samsung
      • Re: (Score:1, Flamebait)

        IF machines do most of the work, why do they need to move their assemblies to China ? Surely the people barely do more than just putsomething in a box and maybe plug in a few cables. It cant cost that much to pay say a Korean to do that ...
      • Exactly what i was thinking - the brands may not be chinese, they may own the IP, etc... but in the end China will get a cut one way or the other. Because cost optimisation and free market :)
    • where will Vodaphone get all the equipment?

      Samsung, Ericsson, Nokia, Qualcomm, etc.

      I missed that part... but somehow I'm sceptical

      When you know you're ignorant, remember you're ignorant.

      Being ignorant doesn't mean you know what is happening by guessing.

      again?

      So you're saying you were an ignorant douche about this in the past, but you still didn't learn the answer?

  • More likely it's 4g falsely called 5g.
  • Export subsidies and free export finance insurance are not new. And it is likely that the US taxpayer will be on the hook, should the loan go into default, or never paid back.Unlike wheat or Corn, a lot of this end gear will be made in China, from antenna's, weatherproof , UV safe plastic cases, power supplies, and electrical cables etc. And maybe Chinese made face recognition security systems, and the hard drives(nearly all made in China). You can guess where the handsets will be made. One does not know ho

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