Vodafone puts Huawei rollout in core networks on hold

CHINA-CANADA-US-HUAWEI

Europe's mobile industry would face higher costs and delays to faster networks if authorities imposed a blanket ban on Huawei equipment, particularly the radio technology deployed on mobile towers, Vodafone's Read said. This runs contrary to the approach taken by the U.S., Australia and New Zealand, who have banned even those uses for Huawei equipment.

Chinese telecommunications hardware giant Huawei said it could become the world's largest seller of smartphones in 2019, without the help of the USA market and despite growing security concerns.

Vodafone has "paused" the deployment of Huawei equipment in its core networks in Europe until Western governments resolve security concerns about the Chinese telecoms giant.

Mr Yu said the allegations against the company have had little influence on its business because Huawei's products and reputation speak for themselves.

"Our customers have trust and confidence in us", Richard Yu, Huawei's consumer division chief, said at a new-product news conference in Beijing.

Canadian envoy to China John McCallum also stated that the Huawei CFO had "quite good arguments on her side", namely the "political involvement by comments from Donald Trump in her case". Huawei is also a major supplier of equipment for less-sensitive radio-access network components on mobile masts. "We were the first to make breakthroughs in key technologies for large-scale 5G commercial use". Those efforts are now under threat in Europe, where the U.K., France, Germany, Norway and other countries have been reviewing their policies.

Carriers are reluctant to pivot away from Huawei unless they are forced to.

Vodafone will put on hold the rollout of Huawei equipment into its European core networks, including in the United Kingdom, until governments and security services clarify whether that equipment will be able to be used or whether there will be restrictions on using that technology.

Executives from Nokia and Ericsson have been careful not to be seen to benefit from Huawei's pain.

Vodafone shares were trading down 5 percent at 3:50 p.m.in London, their lowest in more than a decade, after the company narrowly missed estimates for third-quarter revenue.

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