Ericsson says that there is no grace of Huawei 5G safety concerns

STOCKHOLM (Reuters) – Telecom equipment supplier Ericsson has yet to see an increase in contract wins on the back of security concerns about the chinese Huawei, the Swedish chief executive said on Wednesday

FILE PHOTO: The Ericsson logo is seen at the Ericsson headquarters in Stockholm, Sweden, June 14, 2018. Photo taken on June 14, 2018. REUTERS/Olof Swahnberg/File Photo

The mobile network gear maker, has a market leader Huawei and finland’s Nokia as his main rivals and some analysts think it could take advantage of the Western suspicions of Huawei, after Washington alleged her gear can be used by Beijing for spying.

Huawei has strongly rejected the allegations and launched a lawsuit against the U.S. government.

“What we see is that the customers are concerned,” Ericsson Chief Executive Borje Ekholm told Reuters ahead of the company the general meeting of shareholders at a location close to the north-Stockholm headquarters.

“And that, of course, leads to more discussions with customers for us, but we can’t see that the contracts are assigned. That hasn’t happened yet.”

EU countries will be obliged to share information on 5G cybersecurity risks and the production of measures to address these by the end of the year, the European Commission said on Tuesday, shunning US calls for a ban of Huawei on the block.

“It is good that the EU is trying to harmonize the regulations…they are trying to create a kind of umbrella, which I think is very good for Europe,” Ekholm said, adding that Ericsson does not take a position on the national security.

Ericsson won a 5G customer of Huawei in his own backyard last week signed a comprehensive deal with the Danish TDC to implement the 5G-platform and the modernisation of the carrier’s radio access and core networks.

Huawei was the signing of a six-year networks deal with TDC back in 2013, establishing the Danish company as a ‘reference’ of the customer for the presentation of her performance.

TDC CEO Allison Kirkby was quoted as saying that the operator “is not blind” on the widespread concern about Huawei and information security, although they also pointed out that the price is an important factor.

Ericsson said it had won the contract, because it is a technological leader in 5G.

“This is an important customer, we will work with their whole network… and we see that as a strategically important cooperation,” Ekholm said, but added the deal had been on the table for “a few years”.

Reporting by Johannes Hellstrom and Helena Soderpalm; additional reporting by Douglas Busvine

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