Huawei's Popularity Obstacle to US Campaign

By WSJ City

Washington's campaign to get European allies to give up Chinese telecoms gear has hit an obstacle: the kit's popularity among mobile and internet providers.

KEY POINTS

   -- European countries have been listening to the US closely. 
 
   -- They will make the ultimate decision on whether to allow Huawei 
      Technologies and ZTE. 
 
   -- But feedback from Europe's biggest providers complicates matters. 
 
   -- Executives warn they would bear the cost of a potential equipment ban. 
 
   -- This has particularly been the case in the UK.

WHAT COMPANIES SAY

A total ban "would have significant financial cost, would have significant customer disruption and would delay 5G rollout in several countries," said Nick Read, CEO of Vodafone Group, on a Jan. 25 conference call.Britain's four major wireless carriers--Vodafone, BT Group, 02 and Three--have both privately and publicly cautioned against a ban, according to people familiar with the matter.

WHY THIS MATTERS

US leaders say the Chinese government could order Huawei and ZTE employees to use knowledge of how their equipment works to spy or disrupt communications. Both companies say that would never happen.After essentially banning Chinese telecom manufacturers in the US, Washington turned its attention overseas late last year. It's focusing on Europe because firms there are close to launching the speedy wireless technology 5G.

(END) Dow Jones Newswires

February 15, 2019 03:19 ET (08:19 GMT)

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