LISBON, Might 26 (Reuters) – Portugal’s cybersecurity council CSSC has issued a decision that would formally bar telecom operators from utilizing Chinese language tools of their high-speed 5G cellular networks as effectively 4G platforms on which the brand new expertise is predicated.

The CSSC is the prime minister’s consultative physique and its doc, dated Might 23, is one other blow to efforts by Chinese language expertise large Huawei (HWT.UL) to enter the 5G market in Portugal and presumably prolong current contracts.

Beneath a legislation accepted final August, the federal government can decide “the exclusion, restrictions on use, or the cessation of use of kit or providers” of telecom firms, setting circumstances and deadlines for operators to conform.

The federal government had no rapid remark.

The nation’s primary operators, Altice, NOS (NOS.LS) and Vodafone (VOD.L) have already mentioned they won’t use Huawei’s tools in 5G core networks, amid European and U.S. considerations that Chinese language involvement in essential infrastructure might compromise safety. Beijing and Huawei reject such solutions.

Portugal’s current 5G networks should not standalone and nonetheless largely based mostly on 4G expertise and tools.

With out mentioning China or any Chinese language suppliers by title, the CSSC warned of a “excessive threat” to safety from suppliers or suppliers that “are headquartered in a rustic the place the federal government workouts management, interference or stress on its actions in third international locations”.

Its opinion is predicated on an undisclosed report that evaluated the security of kit in public digital communications networks involving 5G expertise.

It additionally cited safety dangers when the nation the place a provider is predicated has no agreements on information safety, cybersecurity or safety of mental property with Portugal or the European Union, or when it’s not an EU, NATO or OECD member.

Huawei mentioned in a press release it had “no prior data of, and hasn’t been consulted about this matter” and it was nonetheless gathering data “on the character of the evaluation” and hoped to proceed serving Portuguese shoppers.

Europe has emerged as a battleground within the expertise rivalry between Beijing and Washington and Huawei’s European rivals, Ericsson (ERICb.ST) and Nokia (NOKIA.HE), might change into a provider duopoly if the Chinese language firm had been shut out.

Reporting by Sergio Goncalves
Modifying by Andrei Khalip and Mark Potter

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