No hard feelings: TIM’s decision to exclude Huawei from 5G core not politically driven

Earlier this month, Telecom Italia (TIM) took the decision to exclude Huawei from the upcoming tender process to build its 5G cores in Italy and Brazil. Instead, TIM invited rivals, including Cisco, Ericsson, Nokia, Mavenir, and Affirmed Networks, to bid.

 

Particularly in terms of Italy itself, this decision was not all that surprising; Huawei does not currently supply core equipment for TIM’s domestic networks, though it does support other areas of its network. However, for TIM’s Brazilian arm, where Huawei supplies 4G equipment for the network’s core and has previously conducted 5G trials, the decision will surely have a greater impact.

 

In both Brazil and Italy, the debate over how to handle relations with Huawei continues to flare. Italy last year passed legislation giving the government additional powers over 5G supply deals involving non-EU members, such as Huawei, but has since resisted calls to ban the supplier completely.

 

Meanwhile, in Brazil, Huawei’s future is much less clear. Controversial Brazilian president Jair Bolsonaro, a noted fan of US president Donald Trump, has recently stated that the upcoming 5G spectrum auction would take into account “sovereignty, data security, and foreign policy” – likely a sign of politics increasing importance in the future of the country’s telecoms infrastructure. With the US reportedly offering Brazilian operators incentives to forgo Huawei kit, the Chinese vendor’s longevity within the country is becoming inextricably tied to the ongoing political battle.

 

TIM, however, is at pains to stress that the decision to exclude Huawei from the upcoming tender was made based on technical considerations rather than political ones, likely referencing the impact of US sanctions on Huawei’s semiconductor supply chain. 

 

“We respect the decision [by TIM], which is of a commercial not a political nature, that concerns one of the many parts of the network,” said Luigi De Vecchis, president of Huawei Italy.

 

With the UK banning Huawei from the country’s 5G networks and many European countries considering doing the same, the loss of TIM’s business is just one of many indicators that Huawei’s grip on the continent may be slipping.