Huawei is positioning itself to play a significant role in shaping Malaysia's second 5G network, in partnership with Maxis Communications. This development comes as Prime Minister Anwar Ibrahim aims to elevate Malaysia to a high-income economy by 2030. However, Huawei's involvement has raised concerns due to ongoing allegations of espionage, which have prompted warnings from the US and EU regarding potential security risks associated with the Chinese tech giant [3cc0a1c7].
Currently, Malaysia's existing 5G network, which was built by Ericsson, covers approximately 80% of populated areas. A decision on the tender for the new 5G network is expected soon, and Huawei's long-standing presence in Malaysia since 2001, along with its involvement in various Southeast Asian 5G projects, positions it favorably for this opportunity [3cc0a1c7].
In response to espionage concerns, Malaysia enacted its Cybersecurity Act in August, aimed at addressing potential threats. The outcome of the upcoming US presidential election could also influence Malaysia's technology partnerships, as geopolitical dynamics continue to evolve [3cc0a1c7].
Meanwhile, Romania has rejected Huawei's appeal against the ban on its equipment in Romanian 5G networks. The decision, published in the Romanian government gazette, effectively marks the end of Huawei's involvement in the Romanian mobile network market. Under a law introduced in 2021, operators have five years to remove Huawei from the core and an additional two years to clean out the RAN. Both Huawei and the Chinese state expressed disappointment with the decision, stating that it will harm their business operations in the country. The Chinese Embassy also deplored Romania's rejection of Huawei's 5G equipment authorization [e8d3e38d].
Germany has also announced that it will ban Chinese telecom giants Huawei and ZTE from its 5G network due to national security concerns. German officials stated that their telecom networks must be protected from cyberattacks, which they consider an 'existential threat.' The move is part of Germany's efforts to reduce economic reliance on Beijing and follows warnings from the European Union. Huawei responded by saying that there is 'no specific evidence' of cybersecurity risks associated with their technology. The ban will be phased in over the coming years [db403b33].
In other news, Nokia is set to win a contract to supply 5G radio equipment to Portuguese telecoms operator MEO, replacing Huawei as the sole supplier of 2G, 3G, and 4G equipment. The contract has been agreed upon but not yet signed, with an announcement expected next month. MEO, owned by France's Altice, has been supplied by Huawei in the past. The deal marks Nokia's return to Portugal's RAN market after losing market share to Huawei. The global RAN market is expected to decline 5-8% in 2024 [5059c244].