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Exclusive: Huawei and Deutsche Telekom are held in advanced talks about a 5G network is a deal – sources

BERLIN (Reuters) – Deutsche Telekom is in advanced talks to keep China’s Huawei as the main supplier of radio equipment for mobile networks is to put the negotiations on hold for political reasons, according to three sources familiar with the matter.

FILE PHOTO: a Small toy figures in the painting are to be seen in the front face of a Smartphone and a 5G-network-the logo in this illustration, a photo, 30 March 2019 at the latest. REUTERS/dado Ruvic/Illustration

The United States has urged its allies to freeze in the Chinese supplier of cyber security concerns. Washington has been telling allies that the company’s equipment could be used by China as a spy tools, a charge denied by Huawei, and China.

Deutsche Telekom (DTEGn.DE), one of Europe’s largest telecom operator, announced last week that it does not come on 5G network-equipment contracts, as is expected, the resolution of a political debate in Berlin over the question of whether to limit Huawei’s access to the German market.

Before the announcement, Deutsche Telekom had a conversation with a Huawei [HWT.UL] in Paris, and the insistence of the terms and conditions of a possible deal, although no contract has been signed, said the sources, who declined to be named due to the sensitive nature of the subject matter.

In a response to Reuters ‘ questions about talks with Huawei, a Deutsche Telekom spokesman confirmed that there was no deal or agreement has been reached on the creation of the Chinese company, the largest supplier of 5G network technology.

Before the talks were put on hold, the sources said that the two sides had discussed the main terms and conditions which are for the eyes, and that the Smartphone would be 70% of the radio transmissions for Deutsche Telekom’s future ultra-fast 5G networks, for a purchase price of 533 million euros ($587 million).

A mechanism was also developed, need to Huawei’s share of the 5 g of the equipment provision as a result of the move by the Berlin government to limit Chinese involvement, which is the amount that the company would have to be paid for, would have to fall proportionately, the sources said.

The Paris discussions that took place last month, when Deutsche Telekom held talks with Huawei, as well as other providers of 5G network equipment, according to the sources.

Then, on Dec. (3) the executive committee of the German as well as Chinese companies, to a meeting at the Airport in Frankfurt, germany, according to the sources. Claudia Nemat, a Deutsche Telekom board member and the top technology executive, and of Huawei, the Vice-President, Eric Xu participated in the meeting have been added.

The Deutsche Telekom spokesman confirmed that the meetings took place in Frankfurt, and Paris, and he mentioned the negotiation of all transactions were to be suspended, while the Berlin government, which owns 32 per cent of the mobile operator, the official policy of Huawei.

He added the purpose of Dec. 3 the meeting was informed Huawei that the call is on hold.

Huawei declined to comment on its talks with Deutsche Telekom.

THE CARRIER COMPLEXITY

The presentations and the subsequent suspension is a highlight of the complexity of the disruption faced by air carriers all over the world, as they try to get you to go with the 5G network, which will provide you have a much higher wireless internet speeds.

Huawei is the world’s biggest supplier of mobile network gear, and is used by Deutsche Telekom, and many other of the world’s largest mobile operators to make up the bulk of their pre-existing 3G and 4G network.

The talks between Deutsche Telekom and Huawei, are only covered to 5 g of the radio gear, according to the source, not the material, the more sensitive the network “core,” that is, the main focus is on the safety and security of telecommunications operators, and government agencies.

The Radio equipment consists of antennae mounted on masts and base stations for mobile coverage, while the core infrastructure to manage calls and data traffic over the network.

FILE PHOTO: The logo of Huawei is pictured at the front of the German headquarters of the Chinese telecoms giant, in Dusseldorf, Germany, on February 18, 2019 at the latest. REUTERS/Wolfgang rattay

Deutsche Telekom, Huawei ” s largest European customer, has not announced a decision on the supplier of the core.

On Tuesday, German Chancellor Angela Merkel’s government that a decision be postponed regarding the rules for 5G networks until next year.

Merkel has singled out Huawei, however, some decision-makers in your own government have called for the Chinese company to be subject to stricter rules than others, ranging from the reduction of the market share of 50%, up to a total ban.

Reporting by Douglas Busvine; Additional reporting by Ken Li in New York; Editing by Jonathan Weber and Pravin Char

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