LISBON, May possibly 26 (Reuters) – Portugal’s cybersecurity council CSSC has issued a resolution that could formally bar telecom operators from applying Chinese gear in their higher-speed 5G mobile networks as effectively 4G platforms on which the new technologies is primarily based.

The CSSC is the prime minister’s consultative physique and its document, dated May possibly 23, is a further blow to efforts by Chinese technologies giant Huawei (HWT.UL) to enter the 5G marketplace in Portugal and possibly extend current contracts.

Below a law authorized final August, the government can decide “the exclusion, restrictions on use, or the cessation of use of gear or solutions” of telecom organizations, setting circumstances and deadlines for operators to comply.

The government had no quick comment.

The country’s key operators, Altice, NOS (NOS.LS) and Vodafone (VOD.L) have currently mentioned they will not use Huawei’s gear in 5G core networks, amid European and U.S. issues that Chinese involvement in crucial infrastructure could compromise safety. Beijing and Huawei reject such recommendations.

Portugal’s current 5G networks are not standalone and nevertheless largely primarily based on 4G technologies and gear.

Devoid of mentioning China or any Chinese suppliers by name, the CSSC warned of a “higher danger” to safety from suppliers or providers that “are headquartered in a nation exactly where the government workout routines handle, interference or stress on its activities in third nations”.

Its opinion is primarily based on an undisclosed report that evaluated the security of gear in public electronic communications networks involving 5G technologies.

It also cited safety dangers when the nation exactly where a supplier is primarily based has no agreements on information protection, cybersecurity or protection of intellectual house with Portugal or the European Union, or when it is not an EU, NATO or OECD member.

Huawei mentioned in a statement it had “no prior expertise of, and hasn’t been consulted about this matter” and it was nevertheless gathering data “on the nature of the assessment” and hoped to continue serving Portuguese clientele.

Europe has emerged as a battleground in the technologies rivalry among Beijing and Washington and Huawei’s European competitors, Ericsson (ERICb.ST) and Nokia (NOKIA.HE), could grow to be a supplier duopoly if the Chinese firm have been shut out.

Reporting by Sergio Goncalves
Editing by Andrei Khalip and Mark Potter

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