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Negotiations: Telekom wants 70 percent of Huawei’s 5G equipment

The talks on 5G between Huawei and Deutsche Telekom on 5G were already very advanced and a price of 533 million euros had already been set. Then the Telekom put everything on hold because of the work of the US lobbyists.

December 20, 2019, 12:04 p.m.

Meetingroom am Frankfurter Flughafen
Meeting room at Frankfurt Airport (Image: Frankfurt Airport)

Deutsche Telekom has been in advanced talks to retain Huawei as the primary radio provider for the new 5G mobile networks when the negotiations were frozen for political reasons. The Reuters news agency reports from three sources familiar with the matter. Huawei should deliver 70 percent of the radio equipment at a cost of $ 533 million ($ 587 million).

The talks took place in Paris last month when, according to sources, Telekom was in talks with Huawei and other 5G equipment providers. Afterwards, Telekom board member Claudia Nemat met on December 3 at Frankfurt Airport with Huawei’s deputy chairman, Eric Xu. A Telekom spokesman told Reuters the purpose of the meeting was to inform Huawei that the talks would be interrupted.

Huawei Germany did not comment on the report.

Telekom no longer concludes new contracts with providers of 5G network equipment, says a statement from Telekom. Because of the ongoing political debate in Germany, it was necessary to wait until it became clear whether Huawei would still be excluded. “We are currently informing the providers about this.” But one hopes to get political clarity as soon as possible about the 5G expansion in Germany, “so as not to fall behind” . For security reasons, Telekom always relies on several manufacturers.

Interior Minister Horst Seehofer (CSU) said on December 19 in Berlin that Huawei’s participation in the German 5G network must be decided quickly in the new year.

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