Portuguese government to keep ban on Chinese 5G equipment

Portuguese government to keep ban on Chinese 5G equipment is profiled by BTW Media because published evidence links it to internet infrastructure, governance, operational dependencies, or market visibility.

• Portugal’s centre-right government will continue the previous administration’s ban on Chinese equipment in 5G networks, maintaining one of Europe’s strictest stances despite potential costs.

• The decision, rejected by China and Huawei, is under legal challenge in Lisbon.

OUR TAKE
Portugal’s new centre-right government will continue the previous administration’s ban on Chinese equipment in 5G networks, maintaining one of Europe’s strictest policies despite potential costs. This decision aligns Portugal more closely with U.S. security concerns, which view Chinese technology as a potential threat. The ban, affecting Huawei, is being legally challenged by the company in Lisbon. Portugal’s telecoms operators will need to replace existing Chinese equipment, a move estimated to cost over €1 billion. The government argues that ensuring security justifies the financial and logistical burden.
-Tacy Ding, BTW reporter

What happened

Portugal’s centre-right government will maintain the previous administration’s ban on telecoms companies using Chinese equipment in their 5G networks, a minister has stated, despite the anticipated cost of a stance that is one of the strictest in Europe.

In May 2023, under the previous Socialist government, Portugal’s CSSC cybersecurity board prohibited Chinese equipment from high-speed 5G mobile networks, as well as from 4G platforms used as the foundation for the new technology.

The CSSC, the prime minister’s consultative body, dealt a significant blow to Chinese technology giant Huawei’s (HWT.UL) efforts to enter Portugal’s 5G market and potentially extend existing contracts with its decision.

Infrastructure Minister Miguel Pinto Luz told broadcaster NOW late on Monday, “There are certain policies that must maintain continuity, and security is one of them.”

Europe and the United States have expressed concerns that Chinese involvement in critical infrastructure could jeopardise security, a stance rejected by both Beijing and Huawei. In September, Huawei filed a lawsuit in a Lisbon court challenging the CSSC’s decision.

Also read: Germany plans to exclude China from its 5G network

Also read: Nokia set to win 5G contract with Portugal’s MEO, replacing Huawei

Why it’s important

Portugal’s main telecoms operators, Altice, NOS (NOS.LS), and Vodafone (VOD.L), have already stated they would not use Huawei’s technology in their 5G core networks. However, they will still be required to remove the equipment from all of their infrastructure.

A study by consultants EY for Huawei, released on Monday, estimated that excluding Chinese technology could cost the economy over 1 billion euros (£860 million), including 339 million euros in replacement costs.

The minister downplayed this, however, stating that operators would have “a wide time window” to replace the equipment.

Pinto Luz stated that the working group supporting the CSSC’s stance emphasised the need to make the telecoms system “less permeable” to potential threats.

He acknowledged that Portugal was adopting a stricter approach than some European countries and aligning more closely with the United States. However, he noted that “the world has changed… and there is an ever-growing economic and geopolitical conflict between the two poles.”