Huawei hits back over EU's position on 5G

Pressure has been mounting on European mobile network operators (MNOs) in recent weeks to shun Huawei and ZTE when seeking equipment and technology suppliers for their 5G networks.

EU Internal Market Commissioner Thierry Breton recently complained that EU member states have been too slow to implement the 5G security toolbox that the European Commission introduced in 2020 in an effort to mitigate security risks in networks, and the Commission is now urging more operators to adopt measures that will effectively exclude the two China-based vendors from all elements of 5G networks in the EU.

As you'd expect, Huawei for one is refusing to take EU efforts to banish it from 5G networks lying down. In comments emailed to Light Reading, the vendor said it "strongly opposes and disagrees with the comments made by representatives from the European Commission. This is clearly not based on a verified, transparent, objective and technical assessment of 5G networks."

Not all MNOs are likely to be happy about the idea of being forced to look elsewhere for their 5G suppliers. In Germany, for instance, while companies there have taken steps to remove Chinese products from the sensitive "core," each of Germany's big three MNOs – Deutsche Telekom, Telefónica and Vodafone – continues to source radio access network (RAN) products from Huawei. The cost of replacing it now would run into billions of euros, according to a Barclays research note obtained by Light Reading.

Mixed messages in Germany

Deutsche Telekom has also told German media that concerns recently raised by the government about Huawei's RAN management software are misplaced.

According to technology website Golem, government officials had expressed fears the software could be used to manipulate networks or even switch them off. However, DT spokesman Stephan Broszio dismissed these fears, telling Golem that network management systems are completely separate from the Internet and DT's office communication networks.

"Only a few specially screened employees get access to this network. Remote access for manufacturing companies is not possible," Broszio said.

To be sure, the discussion about the participation by China-based vendors in 5G networks is still far from over in Germany. In March, the interior ministry announced it was checking all components with security implications from Huawei and ZTE and is expected to reach a decision about potential dismantling obligations by the autumn.

Golem has noted that the government remains split over the issue, in part because of concerns about the potential cost of replacing Huawei components. There are also fears that formally banning Huawei could elicit a trade response from China, hurting German carmakers and manufacturers of machine tools.

Huawei said it understands the European Commission's concern to protect cybersecurity within the EU but said restrictions or exclusions "based on discriminatory judgments will pose serious economic and social risks. It would hamper innovation and distort the EU market. An Oxford Economics report states that excluding Huawei could increase 5G investment costs by up to tens of billions of euros, and it will have to be paid by European consumers."

The vendor is also bristling over its labeling as a high-risk vendor (HRV), noting that this goes against the principles of free trade.

"It is of paramount importance to emphasize that the discriminatory 'HRV' assessment shall not be applied to any vendor without justified procedure and adequate hearing. As an economic operator in the EU, Huawei holds procedural and substantial rights and should be protected under the EU and Member States' laws as well as their international commitments," it said.

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— Anne Morris, Contributing Editor, special to Light Reading