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DT defends Huawei exposure as the heat rises

The German press and politicians are up in arms over Deutsche Telekom’s relationship with Huawei, but the telecoms group is attempting to ease tensions and add distance from the vendor.

After local news outlet Handelsblatt hinted the relationship between the telecoms operator and the vendor was deepening, politicians began to rage.

“If there is indeed a high degree of dependence of Telekom on Huawei in the expansion of the 5G network, this would be very problematic,” Thorsten Frei of the Christian Democratic Union said.

“Telecom sits clear, it owes us parliamentarians an explanation,” said Falko Mohrs, representing the Social Democratic Party.

Realistically, these are individuals attempting to jump on the band wagon and hype themselves more than anything else, as few should be surprised there is a relationship between DT and Huawei. The telecoms operator has not been covert, but the team has felt it necessary to put out a statement clarifying the position and adding some distance between itself and controversy.

The statement reiterates the implementation of a multi-vendor strategy, with 30% of technology purchases being from US tier one firms, 25% from European and Chinese tier one vendors, and the remainder made up of smaller Asian and local suppliers. The telco has also said purchases from Huawei has declined over the last three years, though as backwards compatibility is a challenge, Ericsson and Huawei will be leading 5G network deployment. This should not be seen as a surprise, however.

Moving forward, DT has said it is aiming to drive more competition in this segment of the business and is therefore supporting the progress of OpenRAN, but its cloud operating system is also based on Open Stack. Theoretically, its cloud service is independent of hardware suppliers, while Huawei supplies preconfigured standard x86 servers.

Although the technologists in the room are not embarrassed by the relationship with Huawei, the corporates might be. Germany has not been the most hostile towards the Chinese vendor in recent months, but the tides do seem to be shifting across Europe. Increased bureaucratic action taken against Huawei in the US is having a material impact on Huawei’s relationships today, and we suspect this is just the tip of the iceberg.

If you are a telco which is exposed to Huawei, the next few months might be uncomfortable, but if you are a tier one rival or an ambitious OpenRAN company, the European landscape is starting to look very favourable.

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15 comments

  1. Avatar Leslie 09/07/2020 @ 10:07 pm

    Everyone is spying on each other, America is the king of Spying yet still crying the loudest, and if you believe anyone is not spying
    including spying their friends than you are a fool.

  2. Avatar Alex Tay 10/07/2020 @ 3:09 am

    Allies of America and America are fearful of China. The former also claimed to technological superiority. Now, if you are really technologically superior, why are you lagging behind? Your technology cannot be that “superior” as you are still learning 4G when China is presently in 5G. China had a much larger population and are already embracing 5G. The “very advanced and superior” Americans can’t match the Chinese and are crying like a baby, claiming that the Chinese have been stealing technology from the American. How in the world can a less advance nation steal from an advanced nation and be a leader in 5G? Where is the logic? America should be lightyears ahead of China since they are technological more advance. Yet, the idiot President claimed that Huawei had, all the years, stole American technology. If the Chinese had really stole and incorporate your technologies in their 5G products, why are the Americans lagging years behind??? It clearly shows that America is shameful and is unable to swallow the bitter pill of lossing out to China when it comes to 5G technology. There is no need to shun Huawei. It clearly shows that you are a looser when you started to impose sanctions and smear Huawei as a tech company manufacturing products with a “back door”. Show us evidences and the entire world will boycott Huawei products!!! Why are you not doing that??? Remember that you may be superior in weapon and military equipment manufacturing, but, there are other areas that other nations are equally good or even better than America. As such, there is no need to feel inferior just because you are not in number one position!😁

  3. Avatar Girish 10/07/2020 @ 8:17 am

    China’s telecom devices and communication equipments has to be banned world wide.
    Huawei and ZTE are the companies.
    These equipments are meant to do comprehensive and realtime spying for Chinese government. Huawei is owned by Chinese army.  Also called people’s liberation army. Huawei and ZTE has changed meaning if owner, made it murky . When China bully countries to buy their telecom equipment. It means these equipments are meant to do spying. Selling telecom equipment is their number one national priority. To achieve their objectives, they better give their telecom equipment free. This will avoid lot of global security debate.
    Why are they hell bent on selling their telecom equipment?
    Why do they bully other  countries to buy their telecom equipment?
    Why did Chinese army invest so much for telecom equipment?
    Why do they sell the equipment so cheap, subsidised?
    The foreign office of China staff are salesmen of Huawei or ZTE, Why?
    Why do they retaliate if other government’s don’t buy their telecom equipment?
    When asked who own Huawei, the answer is murky, Why?
    Solution. 
    The rich countries if the world has to pool money to develop 5 G technology.  This technology has to to be given to whole world free of cost. This will make Huawei and ZTE equipment uncompetitive. They will have a better and economical choice.              
      Huawei says the company is owened by their employees. Are it’s employees share holders. Are they given share certificates. Which individual owns how many shares.
     Can we have about 10 names of employees who own Huawei?                  
    If these employees resign, will they continue to get profits, since they are owners?                         
     They sell their equipments at a low price, it’s a heavenly  subsidised price. Is it to kill competition?  
     Can we see share certificates of employees  who own this companies?
    Do they get dividends every year, what is the dividend amount?

    • Avatar Antonio Alves 11/07/2020 @ 1:41 am

      Really! That’s bull*hit argumentation. Why are 90% of tech devices (even from us companies like Apple) made in China? Cheaper costs. What the us (trump) are trying is to take control of the info for themselves. If you want to ban Chinese stay with 100% Europe companies, prevent the us corporations from taking control of European makers.

  4. Avatar persius 10/07/2020 @ 10:26 am

    Everyone is spying on everyone except the ordinary citizens who just want to make use of the technology

    • Avatar Chrisantus 11/07/2020 @ 6:07 am

      Huawei my company of choice , the USA can hang

    • Avatar Bala Yusuf 11/07/2020 @ 12:31 pm

      Your post to me smacks of the highest level of hypocrisy…Is it not a fact that almost all of the so called technological advancements of the USA emanated from the deliberate financing by the military via defence budgets…Is there any arm of US industry that is not looked at by the military to determine its strategic importance…The US imposes all manner of restrictions and sanctions on the use of technology it regards as strategic. It even goes to the extent of trying to bribe other countries in order to acquire competing technology ( Turkey’s S-400 anti missile system)…The US has all manner of satellites orbiting the space supposedly for peaceful purposes but usually readily deployed to spy and forment trouble….Just to refresh your memory ,the USA was not quite long ago involved in a spying scandal where evidence appeared it had been eavesdropping on its so called dumb allies in Europe ( eg Germany).…

  5. Avatar Tinashe 10/07/2020 @ 12:21 pm

    Actually what China is doing with technology is great but they are only being disturbed with Those few individuals in the US the likes of Trump who dose’nt want competition to be in this world they only believe their apple products are the best whereas it’s now lagging 5 years behind

  6. Avatar Paul Geal 10/07/2020 @ 12:27 pm

    They are state runs they will all the data to there Country will they not lol yes .why do you not understand this ha ha ha you will all pay dearly but it will be to late .

  7. Avatar Lwomwa Joseph 10/07/2020 @ 4:03 pm

    Sometimes am amazed at how pple don’t just realize how dangerous a communist nation can be. For instance if it says let’s have sthg they will always have it without any beaucracies. Don’t forget the US was first to launch 5G tech which means they already had all it takes but because as a democracy they have beaucratic tendencies that have to do make sure it’s safe and usable by humans. This ain’t the same as in a communist China which stole the idea and raced ahead without any regard of safety measures for its citizens. So this should help us all to realize that China doesn’t have pple at heart it always wants thgs done it’s way. Look at Covid they closed their states but let planes fly out with infected pple without caring about the world at large. I kindly ask all those involved to put pple first and kick huewei out of Europe, Africa etc and send a message that we can’t tolorent communist in our countries

  8. Avatar Potus 10/07/2020 @ 4:58 pm

    We all know NSA , spying on their allies , that’s why now Germany is not taking Trump’s crap anymore. Cisco , a USA company with build in backdoors is still allowed worldwide 🙄.
    Trump will not survive the next election and with the new president it will all be back to normal and Huawei can do business again. Just a few more months prior and the world will be better again

  9. Avatar Williamyap 10/07/2020 @ 7:44 pm

    Open secret is Am spied on the Chancellor.
    Am also spied on own citizens.
    Am ban, threaten and discourage others. Could it be that 5G is more difficult to tap in for spying?
    With HW, they lost the edge?
    Am lost the 5G lead and patents mean, even if HW don’t get contracts, money will still flow to HW.
    Politics play into commercial decisions depriving consumers of top services.
    Commercial firms answer to their shareholders and Govts don’t subsidise losses when corporations go into the red.
    If security agencies are not able to plug the gaps in their monitoring, they shouldn’t be called security enforcers.

  10. Avatar Mahmoud ibrahim 10/07/2020 @ 11:44 pm

    All the real subject is diverted from the truth…
    The real pain for USA is in the reality of cash flow control for the newly coming number one commodity in market, the number one cash flow now comes from crude oil and illegal drug trafficking.. Both under USA cash control… Bigger cash flow will come from 5G ,
    To Chinese hands..this is the real pain of western elite, they are predicting, steady and fast erosion of their influence on the world.
    With Chinese nuclear power, there is an end for pirates of the seas and opium war.
    Chinese civilization always saw the world, or the planet is China only…no fear of Chinese pirates, or opium war created by them…
    The real pain for USA is the cash control, the real fear us the erosion if western hegemony..

  11. Avatar Eric Wong 11/07/2020 @ 3:34 am

    Why is the West always against a non-Western nation when that non-Western nation is ahead of them. In the past, it was Toshiba and now it is Huawei. Maybe it is about time, we, non-Westerners should start to shun and boycott Western products especially those from US, Australia, Canada and UK… to begin with.

    • Avatar Wonkyu Lee 19/07/2020 @ 3:46 am

      Western countries are not against any non-Western country. They only go against who are cheaters.

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