Jan 25, 2019

Vodafone pauses installation of Huawei kit in core networks

Vodafone has decided to "Pause" the installation of new Huawei equipment in its core networks across the world due to the political uncertainty surrounding the Chinese supplier. Nick Read, chief executive of Vodafone, said the company would continue to buy radio equipment from Huawei as it builds out its 4G networks and prepares for 5G but that it would suspend the acquisition of new equipment at the 'core'. The core is considered the critical part of the network and many telecoms companies have moved to keep Chinese suppliers, namely Huawei, out of the core to assuage security concerns. Mr Read said Vodafone has decided to pause the installation of new Huawei kit in the core as a result of the "Noise" around the company and pending more talks with the government. Vodafone only uses a "Small amount" of Huawei kit in the core in "Minor markets" and in Spain according to Mr Read. Vodafone spends €7.5bn on capital expenditure a year and Mr Read said that Huawei plays an important role in the diversity and resilience of telecoms networks given there are only three significant suppliers left in the world.

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