Telecom Italia is planning to cancel a contract to involve Huawei in Italy’s 5G construction.
Telecom Italia is planning to cancel its contract with Huawei, Reuters said, citing three sources familiar with the matter. The contract allows Huawei to provide equipment and partly participate in the construction of Italy’s 5G network.
A source said Telecom Italia has sent a letter to Huawei informing it of its intention to cancel the contract with Huawei. The content of the letter was first reported by the original Italian newspaper Il Sole24 Ore (24 Hours of the Sun).
Two sources said Telecom Italia initially planned to sign with Huawei and Ericsson, then added Nokia, and now the entire contract will be split equally between the two companies, Ericsson and Nokia.
The Italian government has not banned Huawei outright, but current legislation requires the government to set strict conditions on 5G contracts with non-EU suppliers, the report said.
Telecom Italia has ruled out Huawei’s participation in the construction of the core of its 5G network and did not invite Huawei to bid last year, the sources said.
Telecom Italia is one of Huawei’s biggest customers in Europe, Reuters said. The loss of this contract will leave Huawei devastated.