Italy has just prevented the telecom group, Fastweb, from signing a deal with Huawei to supply equipment for core 5G network, as per multiple sources, which believe that this move is a clear indicator of Rome adopting a stricter stance against Chinese firms.

The move to prevent this deal was decided by a cabinet meeting earlier this month, which also marked the first time Italy has had to veto a deal over 5G core networks with Huawei. Previously, US Secretary of State Mike Pompeo visited Italy back in September and had described the Chinese tech giant as a threat to the country’s national security, similar to the Trump administration’s stand on the company in the US.

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At the moment, Huawei has strongly rejected the charges and its Italian unit is ready to undergo any scrutiny to showcase the safety of its technology. However, the meeting from earlier this month has decided to use the body’s special vetting powers to block Fastweb from striking a deal with the Chinese firm for the supply sensitive parts for its 5G mobile networking solution in the country, as per sources close to the matter.

According to a Reuters report, a senior government official has stated that “The government has vetoed the operation, asking Fastweb to diversify its suppliers.” Furthermore, the Prime Minister’s office also plans on evaluating Huawei’s role in the 5G core networks in the region. While many European nations like the UK have sought to ban the Chinese brand, Italy has yet to do so yet. So stay tuned for more updates regarding this matter.

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The post Huawei prevented from signing 5G deal with Fastweb in Italy: Report appeared first on Gizmochina.

Huawei seems to be strengthening its position in Europe as the company announced its plan to invest $3.1 billion in Italy over the course of the next three years. The company’s Italian chief, Thomas Miao further revealed that the new investment will create 1,000 direct jobs in the market by 2021.

Specifically, Huawei plans to invest around $1.2 billion in operations and marketing and another 1.9 billion in direct supplies in the Italian market. An additional $52 million would be spent for R&D activities. This investment comes on the sidelines of a new decree passed by the Italian government that increases the power of the state to intervene in the matters of the private ICT (information and communications technology) sector which includes 5G. The decree reportedly comes as a result of the government’s need to strengthen national security in the country’s strategic sectors.

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According to the decree, Italian companies will be required to inform the government of any purchases in the ICT sector from non-European suppliers. If this decree is passed by the parliament, then the rollout of essential ICT infrastructure networks like 5G will be monitored.

Huawei is currently the world’s largest telecom equipment supplier and a leader in 5G technology. But this decree could give an unfair advantage to European companies like the Finnish Nokia and the Swedish Ericsson who also supply 5G equipment to carriers. So, Huawei’s Miao has urged Italy to make the rules fair for all supplier and not just target non-European companies.

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