Huawei fights for market access in the Nordic countries

Huawei Technologies is demonstrating legal force in the face of increased risk of being excluded from major domestic 5G network equipment contracts in the Nordic states.

The Chinese company suffered yet another setback in mid-December when a Swedish court overturned its injunction to curb 5G spectrum auction plans by the Post and Telecommunications Authority (Postoch Telestyrelsen / PTS).

One of Huawei’s main concerns was the conditions the PTS inserted into the 5G auction licensing process that would effectively bar the company from supplying equipment to 5G network builders and operators in Sweden.

The court ruling authorized the PTS to go ahead with the auction of the 5G sphere and offer licensing in the 3.5 GHz and 2.3 GHz frequency bands on January 19, 2021.

“The allocation of frequencies in the 3.5 GHz and 2.3 GHz bands is crucial for the development of 5G in Sweden. It impacts the digitization of society. PTS will hold the auction despite the fact that the conditions must be judged legally, ”PTS said in a statement.

“Protecting the security of Sweden is a vital public interest. The PTS has determined that the conditions specified by the security services and the armed forces should apply to the permits granted.

In November, the Stockholm Administrative Court granted an injunction to Huawei to suspend the auction process for PTS 5G spectrum. Huawei’s lawsuit was sparked by the PTS ‘decision to exclude it from participating in the auction, over what the telecommunications authority called “national security reasons.” The PTS banned a second Chinese company, ZTE, from participating in the auction for the same reasons.

Huawei’s legal offer to stop the auction proved short-lived. The PTS has requested an immediate retrial of the Stockholm Administrative Court’s decision before the Administrative Court of Appeal.

The result gave the PTS the right to proceed with the 5G spectrum auction pending a full judicial review of Huawei’s initial complaints that are expected to be heard in the first quarter of 2021.

PTS’s decision to exclude Huawei from the 5G spectrum auction is based on miscalculations and confusion, said Kenneth Fredriksen, the company’s executive vice president for Central and Eastern Europe and Region Nordic.

“We consider that the court’s judgment confirms our right to participate in the action. We believe PTS is making a mistake by not allowing Huawei to participate in the licensing process, ”said Fredriksen.

“We hope that PTS does not begin the auction process until a full hearing has been called and a conclusion reached regarding the main legal arguments we presented to the administrative tribunal.”

We believe the PTS is making a mistake by not allowing Huawei to participate in the licensing process

Huawei has offered to establish a formal “constructive dialogue” with the PTS and the Swedish authorities, said Fredriksen, which would provide strong guarantees to allay fears of any safety and security concerns related to the use of its technologies. and 5G equipment.

To further win the favor of the Swedish authorities, Huawei has even offered to build a test facility in partnership with Ericsson to validate the integrity of its 5G technologies and equipment. The company also offered a security-focused Swedish government a “no backdoor” deal covering equipment supplied to 5G networks.

PTS’s decision to exclude Huawei from 5G spectrum auctions follows extensive consultation with Säpo, the Swedish national security service, and Must (Militära Underrättelse-och Säkerhets Tjänsten), the country’s military intelligence and security service which operates under the direction of the Swedish army. Command of the Forces.

Säpo and Must have both advised the PTS to impose a 5G supplier bar on Huawei, alleging the company is cooperating closely with state and military organizations in China that pose a serious threat to Sweden’s national security – claims vigorously denied by Huawei.

The Swedish government has approved the PTS decision to block Huawei and ZTE from the 5G spectrum auction, said Anders Ygeman, Swedish Minister for Digitization.

“PTS did the right assessment on Huawei. It is good that the telecommunications authority can move forward with the 5G frequency auction. The 5G development project is important for Sweden and the frequency allocations are crucial for the expansion of the network, ”said Ygeman.