Jul 2, 2019

Nokia boss warns against tougher security rules

The chief executive of Nokia has warned that European governments risk inflicting collateral damage on the wider telecoms industry as they try to crack down on Huawei with new regulations. A number of European countries have begun reviews of whether equipment from Chinese suppliers Huawei and ZTE should be banned from new 5G networks or used in only a limited way, following pressure from the US. Although Nokia could benefit from any loss of business at Huawei, one of its chief rivals, chief executive Rajeev Suri expressed concern that a more fragmented approach to security in the telecoms supply chain could slow 5G rollout and make it more expensive. Mr Suri said that Nokia had won 43 commercial 5G contracts overall, including last week in Saudi Arabia, but argued that it was "Too early to tell" whether it would benefit from the added scrutiny of Huawei. Mr Suri said that telecoms companies had a number of options, including swapping equipment or using specialised software, if they switched from Huawei to a rival supplier. In May, the US added Huawei to its "Entity list" of companies barred from purchasing US technology without government approval, disrupting the global telecoms supply chain.

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