Why Sweden on 5G relies on Samsung and Scandinavian companies
Sweden bans Huawei and Zte from 5G telecommunication networks. The move follows warnings from security services about the threat posed by China. All the details
The latest stop to Zte and Huawei's Chinese technologies for 5G networks comes from Sweden. On Tuesday, Sweden banned the use of China's Huawei and ZTE's tlc equipment in its 5G network for security reasons ahead of a spectrum auction scheduled for next month.
This was decided by the Swedish Post and Telecommunications Authority (PTS) which has banned some operators who are applying for access to the new networks, from using materials and technologies made in China.
The authority said the decision follows the advice of the country's armed forces and security services, which have described China as "one of the greatest threats to Sweden".
THE AUCTION PLANNED IN NOVEMBER
The first auction to win the frequencies is scheduled for 10 November.
The four operators are Hi3G Access, Net4Mobility, Telia Sweden and Teracom, a partnership between the Swedish telecommunications company Tele 2 and the Norwegian Telenor.
The PTS reported that the four companies were identified under the law that went into effect on January 1.
THE CONSEQUENCES OF THE SWEDISH MEASURE
According to the provision taken by the PTS, if already existing infrastructures will be used to provide services for 5G networks, Huawei and Zte products will have to be eliminated and replaced by January 1, 2025 at the latest. Furthermore, "if central functions depend on personnel or functions located in foreign countries ”, these must be disposed of by 1 January 2025 and replaced with personnel residing in Sweden.
DELAYS FOR THE 5G LAUNCH?
But the Swedish move risks slowing the development of the next generation network according to analysts.
"The ban leaves network operators fewer options and risks slowing the rollout of 5G in markets where competition is low," CCS Insight head of research Ben Wood told Reuters .
As the Financial Times recalled, Tele2, Sweden's second largest telecom operator, used Huawei and other vendors in its first 5G network launched in May.
THE REPLICA OF BEIJING
The reaction of the Beijing government was immediate. "We urge the Swedish government to respect the principles of the market of open development and fair competition, to review its decisions". It reads in a statement on the website of the Chinese embassy in Sweden.
ADVANTAGE FOR EUROPEAN ERICSSON AND NOKIA?
It should not be forgotten that Ericsson, one of the leading suppliers of telecommunications equipment in Europe and Huawei's biggest rival, is based in Sweden.
Ericsson and Finland's Nokia are likely to take advantage of the ban locally. Although the South Korean giant Samsung has already won some 5G deals in Sweden.
US PRESSURES AGAINST HUAWEI
The ban in Sweden represents the latest move in a geopolitical fight against Huawei, the target of the Trump administration. The United States is in fact pushing its allies to exclude Chinese telecommunications equipment from the new 5G mobile networks.
Washington argues that Huawei's equipment could be used by Beijing to spy on national governments. Huawei has so far denied that it is a national security risk.
As early as July, the UK ordered the complete elimination of Huawei equipment from the British 5G network by 2027, becoming one of the first European countries to do so. According to the Financial Times , the Swedish decision anticipates new restrictions in Germany. Germany is one of Huawei's largest markets.
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/economia/svezia-5g/ on Tue, 20 Oct 2020 15:12:10 +0000.