Huawei's reliability crisis: Reports of equipment failures push industry to Western alternatives

Global Watch | 2025-09-30

Technology leaders are turning to Western alternatives to China's Huawei, a provider of information and communications technology infrastructure, as the global telecommunications landscape evolves and a growing chorus of digitalization firms express frustration with the company's equipment.

Despite Huawei's aggressive pricing strategy and market presence, reports of equipment failures including instances of hardware "spontaneously catching fire" are raising serious questions about the Chinese tech giant's long-term viability in critical infrastructure projects.

Industry leaders in telecommunications are increasingly vocal about their experiences with Huawei equipment. Reports from tech leaders highlight a pattern of unreliability that extends beyond minor technical glitches to potentially dangerous equipment failures. The preference for American brands like Cisco is not merely about geopolitical considerations, it's about operational integrity and long-term cost effectiveness.

While Huawei's business model of offering inferior equipment at low prices may appeal to procurement departments focused on initial costs, digitalization leaders argue that the total cost of ownership favors more reliable equipment. The hidden costs of downtime, maintenance, and potential safety hazards associated with unreliable equipment often outweigh the initial savings from choosing cheaper alternatives.

Strategic autonomy takes center stage

The reliability concerns are intersecting with broader geopolitical considerations, as evidenced by Spain's recent decision to cancel a 10 million euro ($11.7 million) contract with Huawei at the 11th hour. The Spanish government cited "strategic autonomy" as the reason for nixing the deal, which would have expanded Huawei's fiber optic equipment across a 16,000km network covering the entire country.

This intervention came despite the contract being initially approved, highlighting the growing tension between cost considerations and strategic security concerns. Madrid had faced pressure to reduce its reliance on Huawei equipment, particularly in 5G networks, due to security concerns that the company has consistently denied.

Despite mounting challenges, Huawei, which also makes smartphones, continues to project confidence in its technological capabilities. Senior executive Tao Jingwen recently claimed that China has "virtually overcome crippling US tech restrictions" and that Huawei has "built an ecosystem entirely independent of the United States."

However, these technological achievements appear to be overshadowed by persistent reliability issues in core telecommunications infrastructure. While Huawei may excel in certain high-end computing applications, the fundamental question remains whether the company can deliver consistent, reliable performance that critical infrastructure demands.

In markets where Huawei currently serves as a key supplier to major telecom providers like Mascom, BTC and Orange, there is ample room for companies to expand their presence. The challenge lies in overcoming procurement processes that often favor the lowest initial bid, regardless of long-term reliability considerations.

The Huawei reliability crisis highlights a broader issue in technology procurement: the false economy of choosing the lowest-cost option without considering total cost of ownership.

When equipment fails, catches fire or requires frequent maintenance, the initial savings quickly evaporate. Organizations that prioritize long-term reliability and operational efficiency are increasingly recognizing that investing in proven delivers better value over time.