A1 Group chooses Nokia as 5G supplier of the equipment in Austria

The Nokia logo is seen at the Mobile World Congress in Barcelona, Spain, February 28, 2018. REUTERS/Sergio Perez

VIENNA (Reuters) – Austria’s flagship telecoms group A1 said on Monday it had selected Nokia as a partner for the construction of the next generation 5G mobile networks in the country, the continuation of a long-term cooperation with the Finnish supplier of the equipment.

A1 Group, which is controlled by the mexican America Movil and the Austrian state, said Nokia would with 5G wireless technology and cloud-based core network technology.

5G will deliver super-fast connectivity and facilitating new applications of self-driving cars to medical robots.

The selection of the suppliers for the new networks has become a politically sensitive issue, after the United States lobbied Europe to join China’s Huawei says its devices can be used by Beijing for espionage. Huawei has strongly rejected the allegations and this month sued the U.S. government on the issue.

The European Commission will urge the EU countries to more data to address cybersecurity risks in related to 5G networks, but will not call for a Huawei ban, sources have told Reuters.

Nokia and the Swedish Ericsson, the leading European contenders to offer 5G equipment.

“Together with Nokia, we will exploit the full potential of 5G,” said A1 Austria Chief Executive Marcus Grausam.

“We count on a reliable and long term partner with whom we have already successfully implemented numerous major projects.”

A1 Group agreed to pay 64.3 million euros ($72.8 million) for spectrum in the 3.5 Ghz band in Austria, the first 5G auction earlier this month. He has said that it will finance that from the operational cash flow.

Reporting by Kirsti Knolle; Editing by Mark Potter

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