Portugal moves closer to banning Chinese suppliers from 5G

Nos SGPS SA

26/05/2023 16:43

By Sergio Goncalves
       LISBON, May 26 (Reuters) - Portugal's cybersecurity
council CSSC has issued a resolution that could formally bar
telecom operators from using Chinese equipment in their
high-speed 5G mobile networks as well 4G platforms on which the
new technology is based.
    The CSSC is the prime minister's consultative body and its 
document, dated May 23, is another blow to efforts by Chinese
technology giant Huawei  HWT.UL  to enter the 5G market in
Portugal and possibly extend existing contracts.
    Under a law approved last August, the government can
determine "the exclusion, restrictions on use, or the cessation
of use of equipment or services" of telecom companies, setting
conditions and deadlines for operators to comply.
    The government had no immediate comment.
    The country's main operators, Altice, NOS  NOS.LS  and
Vodafone  VOD.L  have already said they will not use Huawei's
equipment in 5G core networks, amid European and U.S. concerns
that Chinese involvement in critical infrastructure could
compromise security. Beijing and Huawei reject such suggestions.
    Portugal's existing 5G networks are not standalone and still
largely based on 4G technology and equipment.
    Without mentioning China or any Chinese suppliers by name,
the CSSC warned of a "high risk" to security from suppliers or
providers that "are headquartered in a country where the
government exercises control, interference or pressure on its
activities in third countries".
    Its opinion is based on an undisclosed report that evaluated
the safety of equipment in public electronic communications
networks involving 5G technology.
    It also cited security risks when the country where a 
supplier is based has no agreements on data protection,
cybersecurity or protection of intellectual property with
Portugal or the European Union, or when it is not an EU, NATO or
OECD member.    
    Huawei said in a statement it had "no prior knowledge of,
and hasn't been consulted about this matter" and it was still
gathering information "on the nature of the assessment" and
hoped to continue serving Portuguese clients.
    Europe has emerged as a battleground in the technology
rivalry between Beijing and Washington and Huawei's European
competitors, Ericsson  ERICb.ST  and Nokia  NOKIA.HE , could
become a supplier duopoly if the Chinese company were shut out.

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