Next week, the auction of 5G frequencies at 3.5 GHz is due to take place in Sweden. The Swedish regulatory authority PTS is said to have explicitly excluded the Chinese suppliers ZTE and Huawei from the auction.
“Serious” legal violations ?
Huawei has now filed suit against the exclusion by the Swedish regulatory authority PTS. In October, PTS set the terms of the contract and at the same time excluded ZTE and Huawei. This means that the network operators have to waive the use of Chinese manufacturers with the terms of use for the auctioned frequencies. In addition, the existing Chinese hardware is to be replaced by 2025. Huawei has now lodged an appeal with the Administrative Court in Stockholm against the conditions of the regulatory authority. This was announced yesterday, the Chinese manufacturer is claiming “serious” violations of the law in the appeal. Huawei is quite confident “that the court will examine the case in an unbiased manner”.
Where does the exclusion come from?
Due to the trade war between the USA and China and the associated accusations of espionage, Europe also sees Chinese companies as a security risk. Participation in the 5G network is therefore highly controversial. Germany and the EU Commission are still largely staying out of it, but the situation is already more acute in the other countries. Not only Sweden has decided to exclude Chinese manufacturers from building 5G infrastructure. Italy and Great Britain also want to take this step. Huawei now recognizes the security interests of the Europeans and is also cooperating in the testing and certification of critical hardware. The German government is of course already considering how to deal with the situation. A review of the suppliers is being considered due to the new version of the IT security law. This would make access to the German market for ZTE and Huawei considerably more difficult, if not completely blocked. The EU Commission should build up pressure to do so.
Unbiased?
Huawei hopes for an “unbiased and fact-based cyber security requirement with clear and verifiable technical standards and transparent approval procedures”. At the same time, Huawei also points out that the company is “fully cooperating with the network operators and PTS to meet their security requirements for 5G infrastructure”. Huawei also has a flawless security record in Sweden. In this respect, one should consider the economic impact. According to the manufacturer, the decision of the regulatory authority PTS is based on incorrect facts and thus violates Swedish and EU law. Huawei’s spokesman continues: “We trust that the court will examine the case in an unbiased manner and that the legitimate rights and interests of Huawei can be safeguarded”. It remains exciting to see whether the rights and interests will be considered.
