Telefónica to Replace Its Huawei 5G Gear in Spain, Germany Amid National Security Concerns

The company stated that it would continue using Huawei equipment in Brazil and other Latin American markets.

Security guards walk past a screen displaying the logo of Spanish Telecom company Telefónica at its headquarters in Madrid, Spain, on May 12, 2021. Sergio Perez/Reuters

Spanish telecom company Telefónica will replace all of its 5G equipment in Spain and Germany, manufactured by Chinese technology company Huawei, in line with local regulatory requirements.

However, it does intend to retain its Huawei 5G equipment in Brazil, Telefónica confirmed on July 30.

The move aligns with local government directives ordering telecom companies to phase out Huawei-made devices in their core 5G networks because of national security concerns.

“In both Germany and Spain, we are reducing our exposure to Huawei following the rules we have in these countries,” Telefónica Chief Operating Officer Emilio Gayo said.

Gayo noted that in the UK, where Huawei equipment is also banned, they “have a very, very low exposure to Huawei.”

Telefónica confirmed that it would continue using Huawei equipment in Brazil and other Latin American markets, which have not restricted the use of Huawei gear.

The telecom giant’s CEO, Marc Murtra, said his company has ensured that all equipment from every provider complies with the same strict standards, guaranteeing security for the company and its customers. 

Multiple European nations have proposed restrictions, or all-out bans, on the use of equipment made by Huawei, as well as the partially state-owned Chinese technology company ZTE, because of concerns over their close ties to the Chinese Communist Party (CCP).

The bans come after the European Union in 2020 adopted the 5G Cybersecurity Toolbox, a set of strategic and technical measures aimed at ensuring the cybersecurity of 5G networks for its member states.

An EU report on implementing the toolbox notes that the advanced technology of 5G networks creates new security challenges, such as increased potential for cyberattacks.

The report states that concerns had arisen regarding third-party vendors, particularly from non-EU countries “participating in the development and deployment of 5G networks, raising issues of supply-chain attacks and espionage.”

Although the report did not identify which third-party vendors raised concerns, then-EU industry chief Thierry Breton said there were concerns regarding intrusive third-country laws on national intelligence and data security. 

China has increasingly come under scrutiny for its 2017 National Intelligence Law and its 2014 Counter-Espionage Law, which require Chinese companies to support the CCP’s intelligence-gathering activities, meaning that they’re unable to withhold data from Chinese authorities if they request it.

In July 2024, then-German Interior Minister Nancy Faeser announced that the country would ban critical components made by Chinese tech companies in two stages over the next five years. The first stage would see operators removing the technology from the country’s core network of 5G data centers by 2026.

In the second stage, the use of Chinese-made parts such as antennas, transmission lines, and towers would be eliminated by 2029, Faeser said.

“We are protecting the essential infrastructure of Germany’s economy and the communication networks for citizens, businesses, and the government,” Faeser said in a July 11 statement.

Dozens of other nations, including France, Denmark, Estonia, Italy, Latvia, Portugal, and Sweden, have also implemented restrictions or bans on the use of such equipment from Chinese companies.

Huawei claims that the CCP does not interfere in its business or the security of its products and says it would reject outright any attempt to “force our hand—from any country or organisation.”

“We have been very clear on this point: If we are ever put in a position that jeopardizes our independence, the security of our products, or customer networks, we would sooner shut down the company than violate our principles,” the company stated on its official website.

“We are happy to sign any ‘no-spy’ and ‘no-backdoor’ agreements if that would provide further comfort to our customers and governments around the world.”

ZTE says on its official website that it treats compliance and security seriously and has always abided by international standards and best practices. The company adds that it opened up its cybersecurity labs to “enable regulators and stakeholders to verify the security of ZTE products.”

The Epoch Times has contacted Huawei and ZTE for further comment.

Reuters contributed to this report