German officials have revealed that while the country will not ban Huawei outright, it will increase scrutiny on the company’s activities. This is a move that US officials have commended.
According to the report, the government will heavily scrutinise Radio Access Networks (RAN) powering next-gen 5G services. It will also closely monitor other sensitive network equipment. Germany’s Chancellor, Angela Merkel had allegedly signed a workable solution on how the authorities would handle ‘high-risk’ vendors.
Huawei is one of such vendors and US undersecretary of state for economic affairs, Keith Krach had said of the move, “We are seeing things moving in the right direction in Germany … There is really no future with Huawei.”
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However, Huawei which denies posing any security threat to nations said via a German spokesman, “We cannot identify any comprehensible reasons for restricting our market access.” These restrictions will eventually result in Huawei having little or no share in Germany’s 5G development.
As one senior security official said, the final outcome for Huawei will be the same as an outright ban. European countries are moving against Huawei as Germany and the UK are already doing. This will greatly affect the company’s stake in the next-generation 5G market.
For now, according to a Dell’Oro, a consultancy, Huawei has a global market share of 28% in network hardware. It leads such giants as Nokia (15%) and Ericsson (14%). China is likely not taking this strangulation lying down as it appears to have set its sights on Google with an antitrust probe.
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