The Italian telecommunications giant Telecom Italia is planning to slash the equipment contract with the Chinese vendor Huawei. The contract was supposed to allow Huawei to supply the equipment to build part of the telco’s 5G network in Italy. The telecom giant shared an official letter informing Huawei about the contract dismissal. The information of the letter was first reported by renowned Italian newspaper II Sole 24 Ore. Both Telecom Italia and Huawei have not released any official statement regarding the matter. The sources aware of the matter also speculate that the entire contract will be distributed between Nokia and Ericsson.
The United States Wants Countries to Ban Huawei Telecom Equipment
Chinese telecom gear makers have been on the radar for security concerns. In Europe, Britain and Sweden have already banned Huawei’s telecom gear for developing 5G networks. The United States has been voluble about the development, and the nation is pressuring countries to ban Huawei telecom equipment, citing security risks. Huawei, on the other side, has denied all the security risk allegations. Currently, Italy has not imposed a strict ban on Huawei. However, looking at the current legislation, the nation is expected to form strict conditions and policies on 5G deals involving non-EU vendors.
Nokia and Ericsson Might Fully Develop Telecom Italia’s Network
Earlier, Telecom Italia was investing in Ericsson and Huawei equally to develop the 5G network in the country. However, as cited in a report by Reuters, Nokia was included in the equipment contract. Now it is speculated that Nokia and Ericsson will share the entire contract equally. Even though the ban is not imposed by the Italian government, Huawei might have to fly away from the market because of the stringent policies and pressure of the United States. As reported by one of the sources, the move by the telecom giant has been made after reviewing supply policies along with cost and benefit analysis. Tracing back to last year, Huawei was not invited to fill the tender for the development of Telecom Italia’s 5G network. Huawei is absent in the core 5G network development of the telco, where sensitive data is processed.
