Huawei ban would have significant impact on German mobile network -ministry

Telefonica Deutschland Holding AG

17/03/2023 13:30

BERLIN, March 17 (Reuters) - A ban on certain components
by Chinese companies Huawei  HWT.UL  and ZTE  000063.SZ  could
have a significant impact on Germany's mobile network if they
have to be replaced on a larger scale, according to a German
economy ministry letter seen by Reuters.
    The German government is currently carrying out a review of
telecom tech suppliers which it says is not directed at specific
manufacturers. 
    If extensive changes are required as a result of a ban or
regulation, "there is likely to be significant impact on the
operation of mobile networks and the fulfilment of coverage
requirements," said the letter to the Bundestag lower house of
parliament's economic committee. 
    The precise impact on mobile operators and other economic
players is not possible to assess, the ministry added, as it
depends on individual decisions as well as transition periods.
    The government's review could lead to operators being asked
to remove and replace components already built into 5G networks.
Under current legislation, they would not receive compensation.
    Critics of Huawei and ZTE say that their close links to
Beijing's security services mean that embedding them in mobile
networks could give Chinese spies and even saboteurs access to
essential infrastructure.
    Huawei, ZTE and China's government reject such claims,
saying they are motivated by a protectionist desire to support
non-Chinese rivals.
    

 (Reporting by Andreas Rinke; writing by Miranda Murray; editing
by Jason Neely)
 ((mailto:andreas.rinke@thomsonreuters.com; +49 30
220.133.506;))