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Pin to quick picksVodafone Share News (VOD)

Share Price Information for Vodafone (VOD)

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Share Price: 68.36
Bid: 68.36
Ask: 68.38
Change: -0.08 (-0.12%)
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Open: 68.00
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UPDATE 1-EU nations can restrict vendors under new 5G guidelines, Huawei at risk

Wed, 22nd Jan 2020 15:09

(Updates with details from EU document)

By Foo Yun Chee

BRUSSELS, Jan 22 (Reuters) - EU countries can restrict or
exclude high-risk 5G providers from core parts of their telecoms
networks, new EU guidelines show, dealing a potential blow to
China's Huawei Technologies.

The non-binding recommendations, set out in an EU document
seen by Reuters, are part of a set of measures aimed at
addressing cybersecurity risks at national and EU-wide level, in
particular concerns related to China's Huawei, though they do
not identify any particular country or company.

The document, which lays out guidelines agreed by EU member
states, warned of the risks of interference by a third country
in the 5G supply chain, as well the risk of depending on a
single supplier, to justify a tough line.

EU countries should assess the risk profile of suppliers on
a national or EU level and apply restrictions on high risk
suppliers including necessary exclusions to effectively mitigate
risks for key assets, the document says.

EU governments will also be advised to diversify their
suppliers and not depend on one company and to use technical and
non-technical factors to assess them.

While the guidelines did not mention any individual company
or country, they have been drawn up as European countries face
pressure from the United States to ban Huawei equipment on
concerns that its gear could be used by China for spying.

Huawei, which competes with Finland's Nokia and
Sweden's Ericsson, has denied it could be used for
spying.

The guidelines also advise EU countries to set up a legal or
regulatory framework to control the use of outsourced suppliers
and their access to critically sensitive parts of the telecoms
infrastructure.

EU governments should also audit telecoms operators, require
them to provide detailed data on their sourcing of 5G equipment
and describe how they implement baseline technical network
security measures, the document says.

EU digital economy chief Margrethe Vestager is expected to
announce on Jan. 29 the next steps going forward. The bloc sees
5G networks as key to economic growth.

EU members such as Germany are split on whether to allow
Huawei access to their 5G networks, with Chancellor Angela
Merkel preferring to apply the same rules to all equipment
vendors in the face of growing resistance from lawmakers in her
own party.

Huawei has garnered support among Europe's telecoms
industry, including from Deutsche Telekom, Vodafone
and Telefonica which are all Huawei
clients.

(Reporting by Foo Yun Chee; editing by Philip Blenkinsop/
Louise Heavens/Susan Fenton)

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