April 26, 2019 / 7:53 AM / 6 months ago

KPN: Excluding Huawei from 5G network will not incur extra costs

FILE PHOTO: CFO Jan Kees de Jager from KPN poses after the presentation of the company's financial results for the fourth quarter and full year 2018 in Rotterdam, Netherlands, January 30, 2019. REUTERS/Piroschka van de Wouw

AMSTERDAM (Reuters) - Dutch telecom company KPN will strip out equipment made by China’s Huawei from its existing core mobile telecommunications network at the same time as it upgrades to 5G technology, the company’s Chief Financial Officer said on Friday. Jan Kees de Jager said on a conference call that normally dropping a key vendor would lead to greater procurement costs, but that was not true in this case.

KPN earlier said it would select a Western supplier to build its core 5G mobile network.

KPN plans to use Huawei to supply non-core radio equipment. De Jager argued that Nokia, Ericsson and other suppliers would be as affordable as Huawei for the 5G infrastructure.

Reporting by Toby Sterling; Editing by Kirsten Donovan

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