Sweden bans Huawei & ZTE – Burning Issues – Free PDF Download

• Huawei is the world’s second-largest smartphone supplier after Samsung, with 18% of the market – ahead of Apple and others.

• President Donald Trump has extended his executive order banning US companies from working with or buying telecommunications equipment from companies deemed a national security risk until May 2021.

• Sweden has banned telecoms equipment from Huawei and ZTE in its 5G network, joining other European nations that have restricted the role of Chinese suppliers on security grounds.
• Likely Beneficiaries Ericsson and Finland’s Nokia are likely to benefit from the ban locally.

CONDITIONS BASED ON ASSESSMENTS BY THE SWEDISH MILITARY AND SECURITY SERVICE

• The Swedish telecom regulator said Tuesday that four wireless carriers bidding for frequencies in an upcoming spectrum auction for the new 5G networks must not use equipment from Huawei or ZTE.
•  Wireless carriers that plan to use existing telecommunications infrastructure for 5G networks must also rip out any existing gear from Huawei or ZTE Wireless.
• All equipment must be purged by Jan 1, 2025.

ALLEGATIONS OF SPYING ON HUAWEI

• European governments have been tightening controls on Chinese companies building 5G networks following diplomatic pressure from Washington, which alleges Huawei equipment could be used by Beijing for spying.

KLAS FRIBERG

• Klas Friberg, the head of Swedens domestic security service, known as SAPO,described China as “one of the biggest threats against Sweden”.
•  The Chinese state is conducting cyber espionage to promote its own economic development and develop its military capabilities. This is done through extensive intelligence gathering and theft of technology, research and development. This is what we must consider when building the 5G network of the future.”

HUAWEI’S REPLY

• China said no “concrete evidence” had been provided to show equipment from its companies posed a threat to Sweden’s national security. “The exclusion of Huawei is simply based on groundless presumption and is unfair and unacceptable.”

CHINA COULD RETALIATE

• Sweden is home to Ericsson, one of Europe’s leading telecoms equipment suppliers and Huawei’s biggest rival.
• It has won contracts from all three major operators in China to supply radio equipment for 5G networks and could be at risk if the Chinese government decides to retaliate.

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