Vodafone Portugal challenges decision to withdraw Huawei from the WDM network

A Vodafone Portugal contested the withdrawal of Huawwei throughout its WDM transport network because not all components that make up it have the same level of risk, said CEO (CEO), Luís Lopes today.

The manager spoke at a meeting with journalists that took place at the company headquarters in Lisbon.

On the new safety assessment for 5G networks, which was carried out within the deadline, the manager refused to comment.

But with regard to previous decisions, which have to do with the Chinese Huawei, Luís Lopes said that the Safety Assessment Commission considered that the transmission system – WDM – of the operators should not incorporate ‘high risk risk vendor’ components, in this case Huawei.

“ We challenged this decision very much,” said the CEO.

Vodafone Portugal has no access to detailed risk assessment analysis.

“ We contested in the relevant forums” and “we have not yet made any decision on claim for compensation”, continued Luís Lopes.

In summary, Vodafone does not agree with the total withdrawal measures of suppliers from its network, considering that the measure must be proportionate and adjusted to the identified risk.

“ Not all network components have the same level of risk,” he said.

In addition, “we do not think that the transport network should have been considered a cybersecurity risk matter as decided in other European countries,” said Vodafone Portugal’s CEO.

Vodafone is fulfilling all their obligations.

In 2023, the Security Assessment Commission, within the framework of the Cyberspace Security Board, released a deliberation on the “high risk” for the security of networks and services 5G of the use of suppliers’ equipment which, among other criteria, are from outside the EU, NATO or OECD and which “the legal order of the country in which it is domiciled” or linked “allows the government to exercise control, interference or pressure on its activities in third countries”.

The deliberation did not refer to names of companies or countries, but the entity concerned was the Chinese Huawei, who filed an administrative action against the deliberation on 5G equipment of the Security Assessment Committee, with the aim of safeguarding its legal rights.

However, about three years after the decision of the Security Assessment Commission, Meo filed a lawsuit against the Portuguese State to be compensated for Huawei's exclusion as a 5G supplier, claiming 82 million euros of compensation, which is an estimate of the impact of the decision.

The company does not request the annulment of the decision that banned Huawei, but only compensation for the resulting costs.

The replacement of equipment from risk providers on mobile, fixed and transport networks in the EU, such as Huawei, could cost operators between 30 and 40 billion euros, according to the GSMA report Intelligence released this summer.

A study by the consultant EY at Huawei's request and released in September 2024 stated that the exclusion of Chinese technology from 5G networks in Portugal could cost the Portuguese economy more than EUR 1 billion.