The Canadian operator refused to replace huawei equipment and demanded $700 million in compensation

Operator Finance Kang Zhao/Wen

According to Global News, a number of Canadian carriers said the company had spent more than $700 million on Huawei equipment, demanding compensation for the company's losses if it was eventually replaced. This means that Canadian carriers are reluctant to replace Huawei's equipment.

Earlier, on September 28, Canada said it would make a decision within a few weeks whether to ban the Chinese company's equipment from entering the Canadian telecommunications market. But it was a difficult decision, not weeks, but months passed, and there was no Canadian "decision".

Huawei has been in Canada for many years. In 2008, Canadian carrier Telus and Bell's parent company BCE gave Huawei its first major project in North America, a key contract that helped huawei build its reputation and make it a major supplier to Canada's top three telecommunications companies for the next 10 years.

In February 2020, French, chief financial officer of Canadian operator Telus, also said: "We will jointly launch 5G with Huawei before the end of this year." ”

But just 4 months later, the storm changed. Telus instead issued a statement saying it would choose Ericsson and Nokia as its device suppliers.

Bell, Canada's second-largest operator in the wireless communications business, announced that it will work with Ericsson to build a core 5G network.

Rogers, another major Canadian communications operator, issued a statement saying its 5G network will use Ericsson's equipment and technology.

As a result, Huawei has only contracted with some of the smaller local carriers and continues to provide some technology outside of 5G to the network of Bell, the second largest wireless communications operator.

Alykhan Velshi, vice president of Huawei's Canadian operations, has said: "Although Canadian operators have announced different 5G partners for future network construction, the current reality is that Huawei equipment is still used in existing networks in most major cities in Canada and in many remote areas of Canada. ”

At present, for Canadian operators and Huawei, it is a tangled period, because they all recognize each other, but they are also worried about not allowing Huawei to participate in Canada's 5G.

Huawei has built a large R&D center in Canada and hired a large number of Canadian employees, which is Huawei's chip in Canada. If it is driven out of Canada, then Huawei's research and development center in Canada is not necessarily necessary, and a large number of Canadian employees will be laid off.

(Editor-in-Charge: Han Li)