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GERMANY TO TIGHTEN SCRUTINY OF TELECOMS VENDORS

The German government has agreed in principle to tougher oversight of telecoms network vendors that, while stopping short of a ban on Huawei, will make it harder for the Chinese company to keep a foothold in Europe’s largest market, Reuters reported.

Coalition and government sources said on Wednesday that scrutiny of a vendor’s governance and technology would be extended to the Radio Access Networks (RAN) powering next-generation 5G services, in addition to the more sensitive core.


The sources confirmed a report in the Handelsblatt daily which said that, after two years of wrangling, Chancellor Angela Merkel’s coalition had agreed on a formula for how to handle so-called high-risk vendors in a proposed IT security law. The compromise still needs to be drafted into a legal text, which Merkel’s cabinet is now expected to review in November, Handelsblatt reported, without naming its sources.


European governments have been shifting their position following pressure from the United States, which says the global telecoms network leader poses a security threat because, among other concerns, Chinese companies and citizens must by law to aid the state in intelligence gathering. Huawei, based in Shenzhen, denies that it would allow its equipment to be used for spying.



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