According to Reuters, Canada said that if the federal government bans local operators from using Huawei’s 5G equipment, it may touch a $1 billion compensation bill , but Canada may not supply local telecommunications Compensation for related losses.
Under pressure from the United States, Canada banned Huawei Technologies Co., Ltd. for security reasons. Canada is studying whether to allow Huawei to participate in 5G network construction.
Some sources said that if Ottawa announces a formal ban against Huawei, the affected companies have made it clear that they hope to receive compensation for dismantling existing Huawei equipment .
A government source who asked not to be named said: “I am not sure if there is a solid legal basis to show that the government must compensate for making appropriate national security decisions.”
The source said that the government is also concerned about “the public’s perception of paying one billion dollars or more to large companies.”
Ottawa has spent nearly two years studying whether to allow Huawei to participate in the construction of 5G networks, and Canadian domestic suppliers are also very anxious.
Canadian Bell and Telus said that even if they use Huawei equipment in 4G networks, they will still cooperate with Ericsson and Nokia.
However, technical experts say it is difficult to combine 5G equipment from one company with 4G equipment from another provider. This actually means that Telus and Bell will eventually be forced to remove Huawei 4G equipment.
Naijatechnews has learned that some analysts previously said that if the Huawei equipment Bell is divested, it will cost a total of 300 million to 350 million US dollars in three to five years. At the same time, BMO estimates that the cost of Telus is approximately twice that of Bell.
In March, US President Donald Trump signed a bill providing $1 billion to help small providers replace equipment made by Huawei and the Chinese company ZTE.
The Canadian government is dealing with the highest budget deficit since World War II. A government source said: “We obviously want to spend money on things that we think will promote economic growth, not on similar’compensation’. on.”
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