Swedish regulators yesterday banned the use of telecom equipment from China’s Huawei Technologies Co (華為) and ZTE Corp (中興) in the country’s 5G network ahead of the spectrum auction scheduled for next month.
The Swedish Post and Telecom Authority (PTS) said the setting of the license conditions followed assessments by the Swedish Armed Forces and security service.
European governments have been reviewing the role of Chinese companies in building their networks following pressure from the US, which has said they pose a security threat because, among other concerns, Chinese companies and citizens must by law aid the state in intelligence gathering.
Photo: Reuters
Sweden’s security service called China “one of the biggest threats against Sweden.”
The UK in July ordered Huawei equipment to be purged completely from its 5G network by 2027, becoming one of the first European countries to do so.
Huawei and ZTE did not immediately respond to requests for comment on the decision by Sweden, home to Ericsson AB, one of Europe’s leading telecoms equipment suppliers.
“The ban leaves network operators with less options and risks slowing the rollout of 5G in markets where competition is reduced,” CCS Insight chief of research Ben Wood said.
The ban is likely to benefit rival telecom equipment makers Ericsson and Finland’s Nokia Oyj.
The PTS said companies taking part in the auction must remove Huawei and ZTE gear from existing central functions by Jan. 1, 2025.
The regulator defined central functions as equipment used to build the radio access network, the transmission network, the core network and the service and maintenance of the network.
The PTS said the license conditions were decided to address the assessments made by the armed forces and security service.
It has approved the participation of Hi3G Access AB, Net4Mobility, Telia Sverige and Teracom Group in the planned spectrum auction of 3.5 gigahertz and 2.3 gigahertz, key bands crucial for the rollout of 5G.
Tele2 AB and Telenor are to participate together as Net4Mobility to secure spectrum for a joint nationwide 5G network.
Tele2, which uses Huawei equipment in its network and had earlier called Huawei an important vendor, said that the PTS’ decision “does not change our plans substantially.”
“We may have to phase different costs differently between years to meet security conditions on time,” a spokesman told reporters.
The 5G spectrum auction was originally planned for early this year, but the PTS last year said it would delay the auction due to a security review.
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