Telecom Italia is trying to cancel a contract with Huawei for supplying tools to construct a part of the telecom agency’s 5G community in Italy, three sources shut to the matter stated on Thursday.
Losing 5G work from Telecom Italia, considered one of Huawei’s greatest shoppers in Europe, can be a blow to the Chinese know-how large, which has already misplaced some enterprise to rivals Nokia and Ericsson.
The United States has been pressuring international locations to ban Huawei tools, citing safety dangers. Huawei has vehemently denied posing a safety threat. Only Britain and Sweden have to date banned the corporate’s tools in Europe.
Telecom Italia has despatched a letter informing Huawei of its intention to name off the contract, one of many sources stated. Italian newspaper Il Sole 24 Ore first reported the letter.
Telecom Italia and Huawei declined to remark.
The Italian firm had initially deliberate to give the contract to Huawei and Ericsson, however later introduced in Nokia to share the contract among the many three firms, sources informed Reuters final December.
Now, the whole contract might be cut up between Ericsson and Nokia, two of the sources stated.
Italy has not imposed an outright ban on Huawei, however underneath present laws it may possibly impose strict situations on 5G offers involving non EU distributors.
Telecom Italia’s transfer follows a evaluation of its provide coverage, together with a value and profit evaluation, one of many sources stated.
The firm had already dominated out Huawei from the core of its 5G community, the place delicate information are processed, by not inviting the Chinese firm to a young final 12 months.
© Thomson Reuters 2021
