Two Top Canadian Telecom Companies have Chosen European Equipment Makers for their new 5G Networks, Snubbing Huawei
In February Patently Apple posted a report titled "The U.S. Attorney General reveals that a U.S. Consortium may take a Controlling Stake in Nokia and/or Ericsson for 5G." While the U.S government is unlikely to actually take any stake in Nokia or Ericsson for 5G, the message to allies was clear: stay clear of Huawei as a security measure that's a matter of concern to countries within the international Five Eyes security intelligent alliance.
About a year ago Patently Apple posted a report titled "The Story of the Week: Ostracizing Huawei" that provides some background on the U.S. leading their war against China's Huawei in respect to 5G networks not being secure.
Although it's not the "official" position of the Canadian Government at the moment, the fact is that two major Canadian wireless companies have stated that they'll be building out their next-generation 5G wireless networks with equipment from European providers, shunning China’s Huawei Technologies Co.
Montreal-based BCE Inc. said that Ericsson AB will provide the radio access network equipment -- the critical antennas and base stations -- for its 5G network. Telus Corp. said in a separate statement that it has selected Ericsson and Nokia Oyj 'to support building' its network, without elaborating – which falls inline with the U.S. position.
The moves by Telus and BCE is a complete turn around as they both awarded Huawei its first major project in North America back in 2008 to cement the Chinese provider’s reputation as a global player that could compete on quality. Yesterday's shift to supporting European suppliers is seen as clear support for the American position.
It should be noted that Canada's Prime Minister Trudeau has stalled on whether to ban Huawei outright. Tensions between the two countries have been escalating since Canadian authorities arrested Huawei CFO Meng Wanzhou on a U.S. handover request in late 2018. After her arrest, China put two Canadian citizens in jail, halted billions of dollars in Canadian imports and put two other Canadians on death row.
China's violent and political overreaction was aimed at intimidating Canada and Canadians while Canada treated Meng with full respect in her detention staying at here daughters home in Vancouver with an ankle security bracelet. A far cry from the conditions Canadians are under in Chinese prisons. The stakes are high because it's possible that the U.S. will be able to prove that the Chinese company was involved in illegal activities.
The extradition proceedings against Meng, the eldest daughter of the Huawei's billionaire founder, have pushed Canada’s relationship with its second-biggest trading partner into its worst state in decades. Beijing has accused Canada of abetting a U.S.-led "political persecution" against a national champion. For more on this, read the full Bloomberg report.
Earlier today, Reuters released a damning report against Huawei. Reuters is reporting that "Huawei has long described the firm - Skycom Tech Co Ltd - as a separate local business partner in Iran. Now, documents obtained by Reuters show how the Chinese tech titan effectively controlled Skycom. The documents, reported here for the first time, are part of a trove of internal Huawei and Skycom Iran-related business records.
One document described how Huawei scrambled in early 2013 to try to "separate" itself from Skycom out of concern over trade sanctions on Tehran. To that end, this and other documents show, Huawei took a series of actions - including changing the managers of Skycom, shutting down Skycom’s Tehran office and forming another business in Iran to take over tens of millions of dollars worth of Skycom contracts.
A U.S. indictment alleges that Huawei and Meng participated in a fraudulent scheme to obtain prohibited U.S. goods and technology for Huawei’s Iran-based business via Skycom, and move money out of Iran by deceiving a major bank. The indictment alleges that Skycom was an 'unofficial subsidiary' of Huawei, not a local partner. For more on this eye-opening report, read the full Reuters report.