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STOCKHOLM: Swedish regulators on Tuesday (October 20) banned the use of telecommunications equipment from Huawei and China’s ZTE on their 5G network ahead of the spectrum auction scheduled for next month.
The Swedish Post and Telecommunications Authority (PTS) said the establishment of the license conditions followed assessments by the Swedish Armed Forces and security service.
European governments have been reviewing the role of Chinese companies in building their networks following pressure from the United States, which says they pose a security threat because, among other concerns, Chinese companies and citizens must by law help to the state in intelligence gathering.
The Swedish security service called China “one of the biggest threats against Sweden.”
In July, the UK ordered Huawei equipment to be completely purged from Britain’s 5G network by 2027, becoming one of the first European countries to do so.
Huawei and ZTE did not immediately respond to requests for comment on the decision from Sweden, home to Ericsson, one of Europe’s leading telecommunications equipment providers.
“The ban leaves network operators with fewer options and runs the risk of slowing down the deployment of 5G in markets where competition is reduced,” said Ben Wood, head of research at CCS Insight.
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The ban is likely to benefit rival telecom equipment makers Ericsson and Finland’s Nokia.
PTS said that companies participating in the auction must remove Huawei and ZTE equipment from existing core functions before January 1, 2025.
The regulator defined core functions as the equipment used to build the radio access network, the transmission network, the core network, and the service and maintenance of the network.
PTS said the license conditions were decided to address assessments conducted by the military and the security service.
It has approved the participation of Hi3G Access, Net4Mobility, Telia Sverige and Teracom in the auction of planned spectrum of 3.5 GHz and 2.3 GHz, key bands crucial for the deployment of 5G.
Tele2 and Telenor will participate together as Net4Mobility to secure spectrum for a joint national 5G network.
Tele2, which uses Huawei equipment in its network, which had previously called Huawei a major supplier, said PTS’s decision “does not substantially change our plans.”
“We may have to scale different costs differently between years to meet safety conditions on time,” a spokesperson told Reuters.
The 5G spectrum auction was originally planned for early 2020, but last year PTS said it would delay the auction due to a security review. PTS announced in April of this year that the auction would begin in November.
