Two of Canada's largest telecoms firms on Tuesday teamed with Sweden's Ericsson and Finland's Nokia Oyj to build fifth-generation (5G) telecoms networks, ditching China's Huawei Technologies for the project.
) eschewed Huawei, which analysts said would ease the Canadian government’s thorny decision on whether to allow the company into Canada’s 5G network.
Last week, a Canadian court dealt a setback to Huawei [HWT.UL] Chief Financial Officer Meng Wanzhou as she tries to avoid extradition to the United States to face bank fraud charges. The announcements put “a real monkey wrench into the spanner” for Huawei’s business ambitions in Canada, said Lawrence Surtees, lead research analyst on communications at IDC Canada.
Huawei said it supports Bell’s strategy of selecting multiple equipment suppliers, referring to the Canadian telecom firm’s relationship with Huawei to supply other network components.“There is now equipment certainty and the use of multiple suppliers is an excellent strategy to help stimulate innovation and discipline pricing,” Mark Goldberg, a telecoms industry consultant, said.
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