New Portuguese government to keep ban on Chinese 5G equipment

Nos SGPS SA

10/09/2024 11:26

By Sergio Goncalves
       LISBON, Sept 10 (Reuters) - Portugal's centre-right
government will keep the previous administration's ban on
telecoms firms using Chinese equipment in their 5G networks, a
minister said, despite the projected cost of a position that is
among the toughest in Europe. 
    In May 2023, under the previous Socialist government,
Portugal's CSSC cybersecurity board banned Chinese equipment
from high-speed 5G mobile networks as well as from 4G platforms
used as the basis for the new technology.
    The CSSC is the prime minister's consultative body and its
move was a blow to efforts by Chinese technology giant Huawei
 HWT.UL  to enter Portugal's 5G market and possibly extend
existing contracts. 
    The new government took over in April.
    "There are certain policies that must have continuity and
security is one of them," Infrastructure Minister Miguel Pinto
Luz told broadcaster NOW late on Monday. 
    Europe and the United States are concerned that Chinese
involvement in critical infrastructure could compromise
security, a view rejected by Beijing and Huawei. In September,
Huawei filed a lawsuit with a Lisbon court against the CSSC's
move.
    Pinto Luz said the working group that backed the CSSC's
position highlighted the need to make the telecoms system "less
permeable" to potential threats.
    He acknowledged Portugal was taking a stricter line than
some European countries and more in line with the United States,
but said the "world has changed ... and there is an ever-growing
economic and geopolitical war between the two poles".
    Portugal's main telecoms operators, Altice, NOS  NOS.LS ,
and Vodafone  VOD.L , have already said they would not use
Huawei's technology in 5G core networks, but they would still
have to dispose of the equipment in all of their infrastructure.
    A study by consultants EY for Huawei, released on Monday,
estimated the exclusion of the Chinese technology could cost the
economy more than 1 billion euros ($1.1 billion), including 339
million euros in replacement costs.
    The minister played this down, however, saying operators
would have "a wide time window" to replace equipment.
    ($1 = 0.9062 euros)

 (Reporting by Sergio Goncalves;
Editing by Mark Potter)
 ((sergio.goncalves@thomsonreuters.com; +351213509204; Reuters
Messaging: sergio.goncalves.reuters.com@reuters.net))