Canada will not pay compensation for Huawei equipment

Canada will not pay compensation for Huawei equipment

Indicate Canada That it might not pay compensation to the major telecoms service providers if the federal government banned the equipment it manufactures Huawei Chinese fifth-generation networks, raising a potential battle over a bill that could reach one billion Canadian dollars ($ 758 million).

Canada, under pressure from the United States, is studying to ban Huawei equipment for security reasons, as it will allow the company to enter the country’s fifth generation networks.

If Ottawa announces an official ban, the affected companies have made clear that they want compensation for removing existing Huawei equipment, but the government, which is pressuring telecom service providers to cut what it considers too high bills, appears less convinced.

A government source said: I am not sure there is a strong legal case, and we do not have to pay compensation for the appropriate national security decision.

“Federal politicians also have to worry about the public perception of handing $ 1 billion or more to very large companies,” he added.

Ottawa spent nearly two years studying that it would allow Huawei to join 5G networks, and in the absence of any indication of a decision being made anytime soon, Canadian service providers began to work.

And the two companies (Bell Canada) and (Telus Corp) said that they will partner with Ericsson and Nokia, although they use Huawei in networks (4G).

Technical experts say: It is difficult to combine the (5G) equipment of one company with the equipment (4G) of another company.

This means that the decision to work with Ericsson will force (Bell Canada) and (Telus Corp) to remove the Chinese company’s (4G) equipment.

Bell Canada and Telus Corp should not act immediately, as the crucial auction for required 5G spectrum will not occur until June 2021.

In February 2019, Telus Corp said: The ban without compensation could increase the cost of deploying the 5G network and make services more expensive for consumers.

In March, US President Donald Trump signed a bill providing $ 1 billion to help small service providers replace equipment made by Huawei and ZTE.

“Obviously, we want to spend Canadian money on things that we feel will grow the economy rather than pay compensation,” the government source said.

The office of Canadian Innovation Minister Navdeep Bains, who will announce the decision on Huawei and 5G, said it would be too early to discuss future measures.

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