Mobile operators have agreed to phase out the firms from their 5G networks, with almost 20 other countries already having imposed restrictions on equipment vendors
Huawei and ZTE technology must be removed from mobile networks, although some hardware may remain in the RAN
On 11 July 2024, Germany’s Federal Ministry of the Interior and Community (BMI) announced measures designed to ensure the security and technological sovereignty of the country’s 5G networks. Specifically, the BMI has reached agreements with mobile network operators Deutsche Telekom, Telefónica and Vodafone on the further use of critical components in their 5G networks, and will sign legal contracts with each of them to that effect. The contracts include two main obligations for operators:
Stop using all critical components made by Huawei and ZTE in their 5G core networks by the end of 2026; and
Replace the critical functions of Huawei and ZTE’s proprietary network management systems in the access and transport networks of the 5G network with technical solutions of other manufacturers by the end of 2029.
The second requirement means that operators avoid having to ‘rip and replace’ all hardware from the Chinese vendors from the radio access networks (as has been mandated in the UK, for example), but they face a challenge in that a substitute software product is not currently available on the market. Deutsche Telekom has stated that it is already developing a replacement. The BMI and operators have also agreed to establish a forum to jointly work out how the contractual goals can be implemented and promoted. The forum will consist of the Government, operators (of 5G networks), industry partners and manufacturers, and will ensure a structured dialogue on open interfaces, 6G standards, network protection and information and cybersecurity.
The BMI considered whether a manufacturer may be controlled by the Government or affect public order or national security
The signing of contracts with the three mobile operators marks the end of an investigation carried out by the BMI under the Act on the Establishment of the Federal Office for Information Security (the BSI Act). It examined whether and to what extent public order and security in Germany may be affected by using critical components from Chinese manufacturers in public 5G networks. In particular, the BMI considered whether:
The manufacturer is directly or indirectly controlled by the Government, including other state bodies and the armed forces, of a third country;
The manufacturer has been or is involved in activities that adversely affect public order or security in Germany or any other EU Member State, and the North Atlantic Treaty Organization (NATO) or it institutions; and
The use of certain critical components is in line with the security policy goals of Germany, the EU and the North Atlantic Treaty.
Four EU Member States have imposed bans on the Chinese vendors specifically, while other countries have adopted broader restrictions
Nancy Faeser (Federal Minister of the Interior) stated that the “clear and strict agreement” that has been reached with operators protects the “central nervous system” of Germany’s businesses and industry. Faeser added it is vital that the country seeks to reduce security risks from sabotage and espionage, and becomes more self-sufficient and resilient by avoiding dependence on a single source – as it has done in the past. According to our Cybersecurity Tracker, Germany is one of 19 countries globally to impose restrictions on vendors looking to supply equipment for the rollout of 5G networks, in addition to the EC, which has adopted a toolbox for Member States to mitigate security risks during deployments. Within the EU, Germany follows Denmark, Latvia and Sweden in explicitly banning Huawei and/or ZTE from the market. The decision to phase out the Chinese vendors has been a long time coming in Germany, with operators reluctant to do so given a relatively significant reliance on the firms, especially Huawei. Vodafone has described the agreement with the BMI as “technically challenging but feasible”, while Deutsche Telekom has stated that it represents a “good balance” between the security interests of the country and the necessary expansion of digital infrastructure. As expected, Huawei has criticised the decision, saying there is no evidence that its technology carries a security risk. Though it may remain part of Germany’s mobile networks for the years to come, Huawei will need to enable a degree of interoperability between its equipment and that of its competitors – something it has not embraced to date.
