Published: Mon, January 28, 2019
Money | By Ethel Goodwin

Why Vodafone Refused To Cooperate With Huawei

Why Vodafone Refused To Cooperate With Huawei

Vodafone Group Plc (VOD.O) suspended purchases of equipment from Huawei Technologies Co Ltd. for the core of its wireless networks in another setback to the Chinese supplier's growth ambitions.

He cited an "unhealthy level of noise" around Huawei as the reason for the move.

The U.K. government has not demanded any ban on using Huawei equipment, but its spies have warned that the company's products pose a security risk, and the British telecoms firm BT has also removed Huawei's equipment from its core mobile network. "Building on these strengths, as the leader of the 5G era, we will bring an inspired, intelligent experience to global consumers in every aspect of their lives".

The move follows continued pressure from the United States to prevent the use of Huawei equipment in broadband and telecoms networks.

Immediately following the arrests, Karol Okonski, Poland's cyber security minister, said an "abrupt" policy change toward Huawei was not warranted by the arrests, while Poland's internal affairs minister said Poland wanted "relations with China that are good, intensive and attractive for both sides". "We're not replacing at this stage because we engage with the security agencies, politicians and Huawei to clear Huawei's issues", Nick Read said.

In August 2018, Australia said Huawei and Chinese rival ZTE would be excluded from its 5G networks, and in November 2018 New Zealand followed suit. Since Kirin 980 is a 5G-ready chip, Huawei will be swapping its Cat.

Mr Read also warned of higher costs and delays to the rollout of 5G if an European Union ban on the firm's equipment comes into force.

"I want to see when the opponent can catch up with Huawei's data..." Huawei has been expected to play a key role in the development of next-generation mobile networks in Europe, the company's biggest market outside China, but some countries are starting to rethink its involvement.

But in Europe, Portugal's main operator MEO signed a deal with Huawei in December during a visit by Chinese President, praising the Chinese company's "know how, competence, talent and capacity to develop technology and invest in our country".

Huawei said it was disappointed. The CEO of one of Ericsson's largest shareholders, Investor AB, Johan Forssell, said he's been following the rising number of bans imposed on Huawei.

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