The Chinese vendor has appealed the ban it faces in the US. Meanwhile, the UK Government suggests a ban is still on the table and Deutsche Telekom suspends 5G procurement in Germany.
Background: The use of network equipment produced by Chinese companies (especially Huawei) in 5G networks has been the subject of lively discussions since early 2018, with some governments opting to ban vendors from the respective countries’ infrastructure. In particular, the US are taking a tough stance against Huawei, and are trying to persuade their international partners that the vendor should be excluded from their 5G networks.
Huawei appeals a recent FCC decision: This week, Huawei announced that it will appeal a recent decision of the US regulator FCC, which declared Huawei and ZTE as ‘national security threats’ and proposed forcing US operators to replace equipment they had already purchased from the two vendors. The FCC also ordered that operators cannot use money from the USD8.5bn fund to improve coverage in underserved areas for the purchase of equipment coming from the two firms. Huawei is now appealing the decision, arguing that it is based on ‘innuendo’ and mistaken assumptions. Overturning the ban in the US will be central to Huawei’s attempt to convince ally countries.
More trouble could come from Europe: The picture in Europe is mixed, with the European Commission and many national governments adopting a risk-based approach without singling out any vendor. However, some setbacks have come from the UK and Germany. In the UK this week, the Government reiterated that the US-led Five Eyes intelligence alliance is of key importance, suggesting that Huawei could be excluded from 5G buildout to accommodate any US Government’s requests. In Germany, Deutsche Telekom is pausing its procurement for 5G equipment as it waits for a decision of the German government on the issue. While the regulator BNetzA is not excluding any vendor as long as they meet the security requirements, members of the Federal Parliament are putting pressure on the Government to explicitly exclude Huawei from the country’s 5G networks.
