The dispute over the use of Chinese manufacturers’ technology in German mobile networks appears to be resolved. The federal government and mobile network operators have basically agreed not to use Huawei or ZTE technology for critical components of wireless networks until 2029.
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A spokesperson for the Federal Ministry of the Interior (BMI) confirmed related reports in Süddeutsche Zeitung and NDR, saying “A decision has been taken on how to proceed.” Apparently nothing has been signed yet, which is why the BMI and the network operators do not want to reveal any details just yet.
Exchange Network Management
According to information from industry circles, the agreement stipulates that components from Chinese manufacturers will not be used in core networks from 2026. Network operators have long since begun to decommission, and Huawei no longer plays a key role in core networks. ZTE is barely represented in the German market anyway.
Recently there has been a debate over when and how the radio networks should be phased out. The federal government initially insisted on removing Huawei technology completely – and to do so immediately by 2026. Network operators warned that this would result in a loss of network quality and increased costs. There were also potential claims for damages.
For wireless networks, the agreement now clearly stipulates that Huawei technology will not be used for critical components by 2029. This is specifically about network management systems (NMS), which ensure the operation of antennas and base stations. The antennas themselves are not critical and can theoretically also be operated with an NMS from another manufacturer.
To do this, Huawei must open up proprietary antenna technology interfaces to third-party providers. It is still not entirely clear whether Huawei will take this step. The company also has other options. Huawei has no information about any agreement yet, a spokesman said on Wednesday evening. The supplier is awaiting comment until an official statement from the federal government.
Coalition for Open Interfaces
The government is clearly envisioning an alliance for open interfaces. While there is already a trend to open mobile networks and experiment with open standards such as Open RAN, the classic business model of suppliers such as Huawei, Ericsson or Nokia is to sell closed systems made up of proprietary hardware and software.
Because of the 2029 deadline, network operators now have some leeway. If Huawei refuses to open its interfaces, network operators can replace the antennas until 2029. The first 5G antennas have been in operation for about five years, which would be in line with a typical life cycle.
And even if Huawei joins this alliance for open interfaces, it will probably take some time for third-party software to be adapted to the antennas so that it can be used in live operation. The experience of Open RAN shows that this coordination is nothing but child’s play. After all, in this scenario it is conceivable that Huawei could continue to sell antennas to German network operators.
Fear of sabotage and espionage
On the part of the federal government, the Foreign Office, the Ministry of Economic Affairs, the BMI and the Chancellery have been trying to exclude Huawei from German mobile networks for years. This is motivated by concerns that China could gain access to German cell phone networks through providers such as Huawei. There are also fears of espionage.
Network operators deny that the security threats the politicians fear exist and are a real threat. Chinese companies Huawei and ZTE also reject the allegations. The evidence for the allegations made by the politicians is not yet known.
BMI says, “The federal government is working based on the National Security Strategy and China Strategy to reduce potential security risks and dependencies.” Huawei and ZTE are also under pressure in the United States, the European Union, Canada and other countries.
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