Huawei is already the central equipment supplier for three German telecom operators, Deutsche Telekom, Vodafone and Telefónica.
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The draft law, the “Second Law on Improving the Security of Information Technology Systems,” would require equipment manufacturers such as Huawei to issue warranties that their technology does not leave any back doors for cyber attackers.
In addition to technical checks, the draft law will also include political bans, so that relevant ministries can halt the use of certain network technologies for political reasons. The Germans plan to take this step because of the extensive state intervention that the Chinese government can take against Chinese companies.
The draft of the German IT Security Act 2.0 is 92 pages long. The most concerning part is how the decision to use Huawei technology in Germany’s 5G mobile network was made. Some of the wording suggests that the position of security experts from the German Foreign Ministry, German Intelligence Ministry and the Ministry of the Interior prevails at key points.
German network operators now face a problem. Unwilling to wait repeatedly for a political decision in Berlin, they have already expanded their 5G networks with Huawei. Most of them have already extended their existing 4G networks to 5G, and the Huawei component of 4G is already a high percentage of their networks, accounting for about 65% at Deutsche Telekom, 55% at Vodafone, and 50% at Telefonica. Dismantling Huawei would be a complex and expensive operation for them.
A spokesperson for Deutsche Telekom said that the extensive draft is being evaluated in detail. Would not comment on this in advance.
Vodafone also said that the draft is very extensive. The company will first study the draft and take advantage of the permitted consultation period. But implementation will certainly be a challenge.
A Telefónica spokesman said that if a supplier is to be excluded, the federal government should allow enough time for dismantling.
Berlin politicians have criticized the network operator for having started 5G construction without waiting for the government’s decision on Huawei.
Business Daily has learned from the business community that cell phone companies will continue to rely on Huawei first because the cost of switching systems is too high. No other company is as dependent on Huawei as the German network operators. These companies are therefore also all at greater risk. Because if the government exercises its veto power, network operators will have to pay considerable costs in order to dismantle Huawei products.
The German chancellery and economy ministry have refused to exclude a supplier for political reasons. But the SPD and some members of the CDU are opposed, and they are unable to make their case.
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