March 26, 2019 / 3:05 PM / 4 months ago

EU demands scrutiny of 5G risks but no bloc-wide Huawei ban

STRASBOURG (Reuters) - EU nations will be required to share data on 5G cybersecurity risks and produce measures to tackle them by the end of the year, the European Commission said on Tuesday, shunning U.S. calls to ban China’s Huawei Technologies across the bloc.

FILE PHOTO: A surveillance camera is seen in front of the Huawei logo outside its factory campus in Dongguan, Guangdong province, China, March 25, 2019. REUTERS/Tyrone Siu/File Photo

The aim is to use tools available under existing security rules plus cross-border cooperation, the bloc’s executive body said, leaving it to individual EU countries to decide whether they want to ban any company on national security grounds.

Austria, Belgium, Czech Republic, France, Germany, Greece, Hungary, Ireland, the Netherlands, Lithuania and Portugal are all preparing to auction 5G licenses this year while six other countries will do so next year.

The European Union move came despite U.S. pressure to boycott Huawei, citing fears of China using the company’s equipment for espionage. Huawei has strongly rejected the allegations and launched a lawsuit against the U.S. government.

The EU provided additional detail on the plans first reported by Reuters on March 22, with European digital chief Andrus Ansip saying that the measures announced on Tuesday aimed to address concerns about foreign governments using companies for espionage.

Last week French President Emmanuel Macron said that Europe was wakening up to potential Chinese dominance in the region.

Ansip said that 5G technology would transform the economy and society, but that this cannot happen without full security built in.

“It is therefore essential that 5G infrastructures in the EU are resilient and fully secure from technical or legal backdoors,” Ansip said in a statement.

RISK ASSESSMENT

EU countries have until the end of June to assess cybersecurity risks related to 5G, leading to a bloc-wide assessment by Oct. 1. Using this, EU countries would then have to agree measures to mitigate risks by the end of the year.

Such measures could include certification requirements and tests of products or suppliers regarded as potential security risks. The bloc will decide by Oct. 1, 2020, whether to take further action.

The EU has already passed a new law to give permanent status to the EU Cybersecurity Agency and to guide on cybersecurity certification.

Huawei described the EU’s approach as objective and proportionate. Its comments were echoed by telecoms lobby group GSMA, which includes 300 operators worldwide, while the European Telecommunications Network Operators Association emphasized the importance of a fact-based and harmonized policy.

Deutsche Telekom, meanwhile, said it is open to exchanging data with other operators to improve network security as the industry moves towards super-fast 5G technology.

Large telecoms operators, which view 5G as the next big moneyspinner, oppose a Huawei ban, saying that such a move could set back 5G deployment by years.

World No.1 telecoms equipment maker Huawei, which competes with Sweden’s Ericsson and Finnish company Nokia, faces intense scrutiny in the West over its relationship with the Chinese government and U.S.-led allegations that its equipment could be used for spying.

Australia and New Zealand have stopped operators using Huawei equipment in their 5G networks.

But in a separate boost for Huawei on Tuesday, it was announced that Bahrain, headquarters of the U.S. Navy’s Fifth Fleet, plans to roll out a commercial 5G mobile network by June, partly using Huawei technology.

Reporting by Foo Yun Chee; Editing by Philip Blenkinsop and David Goodman

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