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Telefónica Deutschland picks Huawei and Nokia for its 5G RAN

As part of a broader announcement concerning its 5G plans, Telefónica Deutschland revealed Huawei and Nokia are the chosen kit vendors for its 5G radio access network.

Referring to them as ‘proven strategic partners’ TD indicated that it has an established working relationship with the two vendors and doesn’t see any need to change that. That said, TD also noted that they will have to pass a safety certification as required by German law, the details of which are still being thrashed out.

So TD seems to be saying it has no problem with Huawei, at least in the RAN anyway, but ultimately it can’t fully commit to it until the government makes up its mind whether or not it constitutes a security threat. What will happen if the government does throw a spanner in the works is unclear, but since TD has a multi-vendor policy that might be good news for Ericsson. The decision on the core network will apparently be made next year.

The broader strategic statement made by TD is to significantly accelerate its growth for the next couple of years by spending 17-18% of its revenue on expanding its 4G network and getting its 5G one off to a flying start. As Light Reading notes, this will require a dividend cut, which will upset some investors, but you can’t have it both ways and the money has to come from somewhere.

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