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According to Reuters reported on December 27, Telefónica has purchased 5G network equipment from Swedish manufacturer Ericsson to replace some of its Huawei equipment deployed in Spain. This means that Huawei has not only not yet received 5G orders, but also the equipment in the 4G network must be replaced, losing its existing market share.
Telefónica is very large and influential in the European market, by demonstration effect. As early as 2006, telefónica had a turnover of 52.901 billion euros, but the operator's market continued to shrink, because of the epidemic, the operating income fell to 43.076 billion euros in 2020, but in Spain, Telefónica is the fourth largest company in the country.
Telefónica once highly recognized Huawei's 5G technology. In May 2019, Telefónica President Alvarez-Parlet said in an interview with the media that Huawei's 5G equipment and standards are about 12 to 18 months ahead of Ericsson and Nokia, and that for Europe, blocking Huawei means losing the possibility of accelerating 5G deployment.
Under pressure from the United States, Telefónica's attitude has changed dramatically: at the end of 2019, Telefónica announced that it would use Huawei equipment in its Spanish 5G core network, but at the same time said that it would confirm a second supplier (Nokia or Ericsson). Previously, Huawei was the exclusive supplier of Telefónica's 3G and 4G core network technologies. Until this time, Telefónica should still mean that Huawei equipment must be used, but it cannot all use Huawei equipment.
Telefónica's reasoning at the time was that the company's adjustment of the use of equipment was "purely a technical decision" and that "if all the core components come from the same supplier, then there is a high probability that a partial problem will lead to the collapse of the entire network." ”
Telefónica CTO Blanco said that Telefónica did not see evidence to support the Trump administration's claim that "Huawei equipment is not secure", "We have found no evidence of a 'backdoor' (Huawei equipment) ... We monitor it every day. ”
Unfortunately, in the end, Telefónica went further and further in the wrong direction, until it actually had to replace Huawei's 4G equipment.
(Editor-in-Charge: Han Li)
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