Exclusive: Portuguese telecom operators will use Huawei for critical 5G networks, but without government ban

LISBON (Reuters) – The 3 corporations that dominate Portugal’s cell phone market have said they will not use Huawei [HWT] technology. UL] in its core 5G networks, the government does not prohibit the Chinese organization from providing critical infrastructure.

OUR (OUR. LS), Vodafone (VOD. L) and Altice (ATCA.AS), which in combination serve nearly one hundred percent of Portugal’s cell phone consumers, said they did not have to use Huawei’s kit on the fundamental systems of their 5G networks. An array covering servers, gateways and routers that direct traffic to antennas.

The question of whether or not to use Huawei for next-generation cellular networks has a key factor in Europe amid intense U.S. diplomatic tension to ban the Chinese group.

The Portuguese government has not spoken out, but Infrastructure Minister Pedro Nuno Santos told Reuters that it had “no problem” on his face “with no manufacturer.”

Nuno Santos revealed that an organization created through the Portuguese government to assess the dangers and cybersecurity disorders related to 5G had completed its cadno and had reached conclusions directed against a specific provider.

Huawei did not respond to a request for comment.

Basic cellular networks carry superior surveillance hazards because they incorporate more complicated software that handles sensitive data, such as non-public customer data.

A NOS spokeswoman said the company “will not have Huawei appliances in its central network” and will have the “best partners” for each of the network components.

At Vodafone Portugal, a spokesperson said of the parent group: “Vodafone has announced that its 5G central network will not come with Huawei in its operations, so of course Vodafone Portugal is no exception.”

Altice Portugal its position remains the same.

None of the corporations gave an explanation as to why using Huawei in their core networks. Their positions potentially leave the door open for them to use Huawei in non-essential parts of the 5G deployment.

The decisions of the 3 telecom teams regarding Huawei allow the Portuguese government, for whom China is a key business spouse and the United States also a top friend, to take a position.

Nuno Santos showed that he had “heard that Huawei would be excluded” from the fundamental 5G networks, but added: “This has nothing to do with the characteristics or impositions of the Portuguese government, which in this case is aligned with the European orientation. “

The European Commission has suggested that EU member states take urgent action to diversify their 5G suppliers, a measure aimed at reducing Huawei’s presence in Europe.

The EU strategy to eliminate dependence on countries and telecommunications operators from an unmarried provider. Huawei competes with Nokia of Finland (NOKIA.HE) and Sweden’s Ericsson.

Portugal postponed its 5G spectrum auctions for six months until October due to the coronavirus pandemic.

The government of neighboring Spain did not take a position, Telefónica (TEF. MC) stated that it would remove Huawei from the central network for technical reasons. Huawei was part of a list of operators included in the 5G pilot projects presented on Thursday, but not the only or the main one.

Reporting through Sergio Goncalves; Additional reports from Binnie Island; Editing through Jason Neely and David Holmes

All quotes were delayed for at least 15 minutes. See here for a complete list of transactions and delays.

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