Huawei's Popularity Obstacle to US Campaign
15 Februar 2019 - 4:04PM
Dow Jones News
By WSJ City
Washington's campaign to get European allies to give up Chinese
telecoms gear has hit an obstacle: the kit's popularity among
mobile and internet providers.
KEY POINTS
--- European countries have been listening to the US
closely.
--- They will make the ultimate decision on whether to allow
Huawei Technologies and ZTE.
--- But feedback from Europe's biggest providers complicates
matters.
--- Executives warn they would bear the cost of a potential
equipment ban.This has particularly been the case in the UK.
What Companies Say
A total ban "would have significant financial cost, would have
significant customer disruption and would delay 5G rollout in
several countries," said Nick Read, CEO of Vodafone Group, on a
Jan. 25 conference call.
Britain's four major wireless carriers--Vodafone, BT Group, 02
and Three--have both privately and publicly cautioned against a
ban, according to people familiar with the matter.
Why This Matters
US leaders say the Chinese government could order Huawei and ZTE
employees to use knowledge of how their equipment works to spy or
disrupt communications. Both companies say that would never
happen.After essentially banning Chinese telecom manufacturers in
the US, Washington turned its attention overseas late last year.
It's focusing on Europe because firms there are close to launching
the speedy wireless technology 5G
A fuller story is available on WSJ.com
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(END) Dow Jones Newswires
February 15, 2019 09:49 ET (14:49 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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