EU: Member States must urgently diversify 5g suppliers

 EU: Member States must urgently diversify 5g suppliers

In November 2019, the EU agreed to take a tough stance against 5g suppliers to reduce the network security risks of the next generation mobile network, which is seen as the key to promoting economic growth and competitiveness. The strategy includes reducing the dependence of countries and telecom operators on one supplier. As the worlds largest telecom equipment manufacturer, Huawei competes with Finlands Nokia and Swedens Ericsson.

Although the EU has said that there is still a lot of progress to be made. Reporting on the progress made by 27 member states, one EU executive said: there is an urgent need for countries to make progress to reduce their dependence on high-risk suppliers, as well as at the EU level.

Due to technical or operational difficulties, some challenges have been identified in designing and implementing appropriate multi vendor strategies for individual mobile network operators (MNOS) or at the national level, the executive said. Lack of interoperability or country size are some of the problems.

Sources pointed out earlier this week that in addition to the UK, France is also taking a disguised ban on Huawei. EU officials said phasing out high-risk suppliers and spending extra costs would not undermine 5gs promotion across the EU, and Ericsson and Nokia would be able to cope with demand.

If you look at the global situation, Nokia and Ericsson have a large share of the world market in terms of 5g deployment contracts signed worldwide, EU officials said. Together, the two companies will certainly account for 50% to 60% or even 65% of the total. I think that the two European suppliers can not only provide the products needed in Europe, but also provide the products needed in more regions of the world.

The EU also urged 13 EU countries to immediately adopt the FDI review mechanism, a tool that allows EU governments to intervene in the case of FDI in strategic assets, especially in the case of state-controlled or state-owned financing enterprises. (small)

Source of this article: Zhang Zutao, responsible editor of Netease science and Technology Report_ NT5054