Canada has effectively blocked China’s Huawei Technologies Co. Ltd. from next generation 5G wireless networks.
To date, Canada is the only member of the "Five Eyes" intelligence sharing network that has not formally blocked Huawei from 5G networks. However, industry observers say Canada has effectively done just that, delaying a decision long enough to force telecom companies to exclude the Chinese gear maker from their newest networks.
The strategy allows Canada to stay on the right side of both China and the United States as they fight over Huawei. Canada and its Five Eyes allies — the United Kingdom, New Zealand and Australia — are under pressure from fellow member the United States to squeeze out Huawei on security grounds.
5G networks offer data speeds up to 100 times faster than 4G networks and are expected to power everything from telemedicine and remote surgery to self-driving cars. Canada has been mulling whether to disbar the Huawei’s next-generation equipment for the better part of two years, brushing off increasing signs of industry impatience.
In June, Bell Canada (TSX:BCE) and Telus Corp. (TSX:T) two of Canada’s biggest wireless providers, teamed with Sweden’s Ericsson and Finland’s Nokia to build fifth-generation (5G) telecoms networks, ditching Huawei for the project despite using Huawei 4G gear.
Rogers Communications (TSX:RCI.B), Canada’s other large wireless operator, announced in 2018 it was using Ericsson 5G equipment. Earlier this month, the Trump administration said it would further tighten U.S. restrictions on Huawei, aimed at cracking down on its access to commercially available chips.
In 2018, both Australia and New Zealand blocked service providers from using Huawei 5G equipment. The British government said last month it would ban Huawei from 5G networks by ordering companies to remove the equipment by 2027.
