Germany ups reliance on Huawei for 5G despite security fears -survey

Telefonica Deutschland Holding AG

16/12/2022 14:58

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      Huawei accounts for 59% of German installed 5G RAN gear
    

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      Some European nations not using Huawei at all for 5G
    

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      Berlin may tighten rules on critical infrastructure
suppliers
    

  
    By Sarah Marsh
       BERLIN, Dec 15 (Reuters) - Germany has become even more
dependent on Huawei for its 5G radio access network equipment
(RAN) than in its 4G network despite growing worries about
Chinese involvement in critical infrastructure, according to a
new report.
    Many European countries have banned Chinese companies from
all or part of their 5G networks on security grounds, amid
intense diplomatic pressure from the United States.
    But Huawei  HWT.UL  accounts for 59% of Germany's 5G RAN -
the base stations and related infrastructure that connect
smartphones to the network - compared to 57% in 4G networks,
according to the survey by telecommunications consultancy Strand
Consult.
    The survey, to be released next week but seen by Reuters,
provides an overview of the roles of China's Huawei and ZTE in
the roll-out of next-generation mobile networks across Europe,
singling out the region's largest economy for its continued
reliance on its top trade partner. 
    "There are indications that Germany has not taken the
security threat that China poses seriously," the study says,
drawing comparisons to the Nord Stream 2 gas pipeline, long
criticised by opponents as a security risk but which Berlin
justified by saying Russia would not weaponise energy.
    Huawei has repeatedly denied its equipment poses a security
risk and accuses Washington of a protectionist desire to help
U.S. firms that cannot compete with its technology and pricing.
     Huawei did not immediately reply to request for comment for
this story.
    Germany, home to operators like Deutsche Telekom  DTEGn.DE 
and O2  O2Dn.DE , passed an IT security law two years ago
setting high hurdles for makers of telecommunications equipment
for the "critical components" of 5G networks.
    Critics note requirements are toughest for the core network,
where sensitive data is processed, but say that is so enmeshed
with RAN infrastructure that both can pose security risks.  
    The German network agency referred Reuters to regulation
that shows differentiated treatment for core and RAN components.
The information security office did not reply to a request for
comment on whether the high share of Chinese components could
pose a security threat. 
    Jens Zimmermann, a lawmaker for the Social Democrats (SPD),
the senior coalition party in the German government, accused
telecoms operators of sticking to the minimum requirements of
the new law rather than its spirit.
    "If this attitude continues, we will need to tighten the
legal framework," the SPD spokesperson for digital policy said. 
    GERMANY COULD TIGHTEN REQUIREMENTS
    The Strand report shows that while Germany is not alone in
increasing its use of Chinese-made RAN gear in its 5G network,
many small European countries, especially the Nordics and
eastern states like Estonia, Latvia, Lithuania and Slovakia, do
not use any.
    In some of those countries, author John Strand told Reuters,
operators themselves had chosen non-Chinese vendors to keep wary
corporate customers happy.
    The report noted, however, that Huawei has a higher market
share in Berlin than in Beijing, where it faces tough
competition from domestic rival ZTE.
    A strategy paper by Germany's Greens-run economy ministry
has recommended increased scrutiny of components from
authoritarian states in critical infrastructure.
    "We need a general revision of commercial cooperation with
companies from autocratic states," said Greens lawmaker
Konstantin von Notz, chairman of the parliamentary committee
that oversees the intelligence services.
    A more pro-active approach was needed, he said, to ensure
Germany's sovereignty "in the face of states like Russia and
China".
 (Reporting by Sarah Marsh; Additional Reporting by Supantha
Mukherjee in Stockholm; Editing by Kirsten Donovan)
 ((sarah.marsh@thomsonreuters.com; +49 30 220133621; Reuters
Messaging: sarah.marsh.thomsonreuters.com@reuters.net))