LISBON, Might 26 (Reuters) – Portugal’s cybersecurity council CSSC has issued a decision that might formally bar telecom operators from utilizing Chinese language tools of their high-speed 5G cell networks as properly 4G platforms on which the brand new expertise relies.

The CSSC is the prime minister’s consultative physique and its doc, dated Might 23, is one other blow to efforts by Chinese language expertise large Huawei (HWT.UL) to enter the 5G market in Portugal and probably prolong present contracts.

Beneath a regulation authorized final August, the federal government can decide “the exclusion, restrictions on use, or the cessation of use of kit or companies” of telecom firms, setting situations and deadlines for operators to conform.

The federal government had no rapid remark.

The nation’s fundamental operators, Altice, NOS (NOS.LS) and Vodafone (VOD.L) have already mentioned they won’t use Huawei’s tools in 5G core networks, amid European and U.S. considerations that Chinese language involvement in crucial infrastructure may compromise safety. Beijing and Huawei reject such strategies.

Portugal’s present 5G networks aren’t standalone and nonetheless largely based mostly on 4G expertise and tools.

With out mentioning China or any Chinese language suppliers by title, the CSSC warned of a “excessive danger” to safety from suppliers or suppliers that “are headquartered in a rustic the place the federal government workout routines management, interference or strain on its actions in third international locations”.

Its opinion relies on an undisclosed report that evaluated the protection of kit in public digital communications networks involving 5G expertise.

It additionally cited safety dangers when the nation the place a provider relies has no agreements on knowledge safety, cybersecurity or safety of mental property with Portugal or the European Union, or when it isn’t an EU, NATO or OECD member.

Huawei mentioned in an announcement it had “no prior information of, and hasn’t been consulted about this matter” and it was nonetheless gathering data “on the character of the evaluation” and hoped to proceed serving Portuguese purchasers.

Europe has emerged as a battleground within the expertise rivalry between Beijing and Washington and Huawei’s European rivals, Ericsson (ERICb.ST) and Nokia (NOKIA.HE), may change into a provider duopoly if the Chinese language firm have been shut out.

Reporting by Sergio Goncalves
Enhancing by Andrei Khalip and Mark Potter

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