Vodafone Group Plc (NASDAQ:VOD) CEO, Nick Read, speaking at this year’s mobile world congress criticized the banning of Huawei from Europe saying that it would likely set back the roll out of 5G by two years. This was after Huawei and Vodafone had a 5G demonstration in the event that week, accentuating their partnership.
Vodafone is clearly defending its equipment supplier and by extension its position as a leading telecommunication company in Europe. Partnership with Huawei over the past years has been great for the company, the reason it is threatened by the ban imposed on its supplier. Even with the current trend of events, Vodafone is doing well in the stock market having closed the previous business day at $17.64, a 0.74% positive move from its closing price.
The CEO Acclaims Huawei
Huawei is among the big providers of telecommunications equipment worldwide alongside Nokia and Ericsson. ”If we concentrate it down to two players I think that’s an unhealthy position not just for us as an industry but also for national infrastructure in the country,” the CEO said. He further went on to state how the three are stiff competitors but is quoted as saying huawei is 12 months ahead of its competitors in the 5G technology industry.
Security Claims Surrounding The Projected Ban
During the week of the Mobile World Congress, Ericsson CEO Borje Ekholm said the projected ban based on security concerns was too speculative. He said it gave the operators too much indifference but decided he would be watching Huawei’s developments closely.
The popular security claim has sparked a lot of controversy in Europe as well as in America with the concern being on the Chinese government potentially using Huawei’s 5G equipment to spy on the countries using them.
The U.S is not using Huawei’s 5G equipment with these claims as a basis for it. Huawei denied these claims. Similarly, Vodafone also announced it would suspend the deployment of Huawei’s equipment in its European fundamental networks. It has otherwise continued to employ Huawei’s 5G radio equipment.
Vodafone CEO Preferable To Fact-Based Talks
Vodafone’s CEO said he would be more likened to working with governments and security operators to rule out speculative talks and instead have fact based opinions.