Breaking News
Investing Pro 0
Cyber Monday Extended SALE: Up to 60% OFF InvestingPro+ CLAIM OFFER

Sweden bans Huawei, ZTE from upcoming 5G networks

Stock Markets Oct 20, 2020 10:05AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: The Huawei logo is seen at the IFA consumer technology fair, in Berlin
 
TEL
-0.90%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
ERICb
+1.67%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
TEL2b
-0.34%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
TELIA
-0.59%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
NOKIA
+1.00%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
NOK
+1.00%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

By Supantha Mukherjee and Helena Soderpalm

STOCKHOLM (Reuters) - Sweden on Tuesday banned on security grounds the use of telecom equipment from China's Huawei [HWT.UL] and ZTE (SZ:000063) in its 5G network ahead of a spectrum auction scheduled for next month, joining other European nations that have restricted the role of Chinese suppliers.

Telecoms regulator PTS said https://www.pts.se/en/news/press-releases/2020/four-companies-approved-for-participation-in-the-3.5-ghz-and-2.3-ghz-auctions the decision followed advice from the country's armed forces and security service, which described China as "one of the biggest threats against Sweden".

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. Huawei has repeatedly denied being a national security risk.

The United Kingdom in July ordered Huawei equipment to be purged completely from Britain's 5G network by 2027, becoming one of the first European countries to do so.

China said that no "concrete evidence" that equipment from its companies pose threats to national security in Sweden had been provided.

"We urge the Government of Sweden to comply with market principles of open development and fair competition, revisit its decisions," the Chinese embassy in Sweden said in a statement on its website.

Huawei and ZTE did not immediately respond to requests for comment.

"The ban leaves network operators with less options and risks slowing the rollout of 5G in markets where competition is reduced," said Ben Wood, chief of research at CCS Insight.

In a potential sign it might retaliate, its telecoms regulator also issued a notice on Tuesday calling for stricter supervision of foreign telecoms companies in the country.

Sweden is home to Ericsson (ST:ERICb), 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 https://www.reuters.com/article/us-china-huawei-europe-idUSKCN24L1NW.

"It could be that some of the European vendors will sell less in China going forward if the Chinese are selling less in Europe going forward," CEO Kjell Johnsen of Swedish-based telecom operator Tele2 said in a post-earnings conference call.

LIKELY BENEFICIARIES

Ericsson and Finland's Nokia (HE:NOKIA) are likely to benefit from the ban locally. The Swedish company said it would not comment on national security issues while Nokia declined to comment.

PTS gave companies taking part in the auction until Jan. 1, 2025 to remove Huawei and ZTE equipment from their existing infrastructure and core functions.

It has approved the participation of Sweden's Hi3G Access, Net4Mobility - a consortium of Tele2 (ST:TEL2b) and Telenor (OL:TEL) - Telia Sverige (ST:TELIA) and Teracom in the planned spectrum auction of 3.5 GHz and 2.3 GHz, bands crucial for the 5G rollout.

Tele2, which uses Huawei equipment in its network and had earlier called Huawei an important vendor, said the ban "does not change our plans substantially".

"Many operators have already proven that when they rip and replace Chinese equipment, it doesn't have a negative impact on their capital spending," said industry consultant John Strand.

Sweden bans Huawei, ZTE from upcoming 5G networks
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (9)
Stephen chen
Ningboren Oct 20, 2020 7:18PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
So that CIA can now continue to spy on their allies. Great
Honor Uzivatel
Honor Uzivatel Oct 20, 2020 12:01PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Sweden is a totalitarian regime with undemokratic votes and orwelian media
Kaveh Sun
Kaveh Sun Oct 20, 2020 10:33AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
All companies operate in China as join ventures( in some form ) which allows Chinese gov control and stealing technology. Even Apple icloud in China is under Chinese control.
Emre SH
Emre SH Oct 20, 2020 10:19AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Bad decision for nokia and ericsonn who has huge business in china
Kaveh Sun
Kaveh Sun Oct 20, 2020 10:15AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Install Chinese made base stations is dangerous. Hotspots for consumers are ok since if they steal, it is only on average people.
Major Woody
Major Woody Oct 20, 2020 7:25AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Bravo Sweden
Usman Ibrahim
Usman Ibrahim Oct 20, 2020 7:13AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
china should just ignore them and focus on their own country
Fan Li
Fan Li Oct 20, 2020 6:27AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Truth is, Europe and US do not need 5g yet, the 4g coverage is still quite poor compared to China. They can afford to wait Ericsson and Nokia to catch up with the technology and reduce cost. for now just use Huawei as a political tool. We all know it is not about if user data are being collected or not, it is about being collected by whom.
Simon Liu
Simon Liu Oct 20, 2020 4:49AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
China is still open to Ericsson and Nokia, without concern.
Joao Abo-gaux
Joao Abo-gaux Oct 20, 2020 4:49AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Ericsson and Nokia come from democratic and transparent states
Joao Abo-gaux
Joao Abo-gaux Oct 20, 2020 4:49AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
And yes China is open to Ericsson and Nokia because it is from themThat they get their technology
jack hong
jack hong Oct 20, 2020 4:49AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
This article is about 5G, and you say China is open to these two companies, so I'm very curious to know if Ericsson or Nokia are allowed to build 5G networks in China?
Bowen Li
Bowen Li Oct 20, 2020 4:49AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
jack hong yes, Ericsson & Nokia have about 10% market share in China.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email