On Hold: Deutsche Telekom 5G Deals
Deutsche Telekom already placed all deals to purchase 5G network equipment to be put on hold, while waiting for a resolution debate in Germany. The purpose is to whether bar the Chinese vendor Huawei because of security reasons.
Deutsche Telekom launched their 5G technology in a couple of German cities while being based on the main project with Huawei. Its expansion plans to pan out to 20 German cities by 2020.
Meanwhile in the USA, there is a $26 billion deal for Deutsche Telekom’s T-Mobile unit in order to mix with Sprint hangs with the balance. More than 1 dozen of states in the USA are suing so the new merger cannot enter and a judge in New York will hold a hearing for the case on December 9.
The lawmakers from Chancellor Angela Merkel’s Christian Democratic Union already rebelled against the proposed regulations that will ban any provider outright. However, they will instead check the technology governance of every vendor.
Washington had imposed to ban Huawei in May and had contacted allies to do the same. They are alleging that the global network market was insecure with their gear and it was in debt to Beijing. There were concerns that Donald Trump highlighted on Wednesday during a NATO summit held in England.
The United States has sided and put forward arguments that the equipment of Huawei contains access that exposes networks to all cyber spies, but Huawei denies this.
Even if Huawei already denied US allegations, if there are any signs that Deutsche Telekom is starting a new business with Huawei puts the undermining US deals at risk.
Deutsche Telekom and The Technology Industry
Based on an industry source, Claudia Nemat who is a Deutsche Telekom has recently met with Eric Xu, the Huawei Deputy Chairman, to talk about the business between their companies.
Deutsche Telekom refused to comment about the meeting, nor said anything about how much 5G investment budget counts in the future. It is actually quite popular that Deutsche Telekom depends on a couple of vendors for security reasons.
Merkel estimated that Huawei accounts for about 70% of the existing mobile network in Germany, which is a share and expect to go down in the future. European competitors Ericsson and Nokia will benefit from this.
The lawmakers who belong to the Christian Democratic Union of Merkel already objected, but it pushes through a resolution in a recent conference in order to add parliament scrutiny.
The junior coalition allies of Merkel have made supported calls for a more difficult regime. These 5G networks that are superfast are projected to roll out in Berlin. This is according to the Huawei pilot project.
Deutsche Telekom hopes to get political clarity regarding Germany’s 5G buildout right away to avoid abandonment.
This is the latest news about technology that you should know about, especially if you want to know what the future of mobile networks will be. 5G will be a lot faster and more powerful that is for sure.