Spain may appeal against excluding Huawei from 5G state subsidies

2023.10.10

Spain may appeal against excluding Huawei from 5G state subsidies


Huawei has appealed against the Spanish government’s 5G state subsidy regulations, which may cause Huawei to lose its qualifications for subsidies.

According to news on October 10, on Monday local time, Huawei appealed against the 5G national subsidy regulations issued by the Spanish government because the regulations may cause Huawei to lose its qualifications for subsidies.

Spain has pledged more than 500 million euros ($527 million) in state subsidies to deploy 5G networks in rural areas of the country, but it said it would exclude certain suppliers deemed "high risk." Huawei has filed an administrative appeal through its Spanish subsidiary, claiming that excluding certain suppliers violates the law.

Huawei said in an emailed statement on Monday: "The relevant provision interferes with operators' freedom to select the best suppliers based on objective criteria that reflect commercial, technical and security requirements. Instead, it attempts to exclude certain suppliers based on arbitrary political criteria." supplier."

Regulations issued by Spain show that equipment, components and related software in key elements of the 5G network "will not be purchased from suppliers designated as high-risk in Spain." They also noted that operators already deploying 5G technology may be forced to replace equipment if suppliers are labeled high-risk.

Spain's Economy Ministry, which sets the regulations, has not yet drawn up a list of banned suppliers, and a spokesman for the agency declined to comment.

The European Commission is increasing pressure on member states to gradually replace equipment from Huawei and ZTE in their most advanced mobile networks. In June this year, the European Commission banned the use of the two vendors' products in internal systems.

As of December 2022, 38% of Spain's 5G networks come from Chinese suppliers. This compares to 59% in Germany, 17% in France and 51% in Italy.

Just a month ago, Huawei had appealed a 5G decision in Portugal because the Portuguese Cybersecurity Commission banned operators from using its equipment during the construction of 5G mobile networks. (little)