From China to the USA: The dispute over the German mobile network

The Germans want a 5G mobile network that is as affordable, dense, and fast as possible. Only then does the issue of data security come up. However, only 13 percent are satisfied with the performance of their mobile networks, according to a representative survey. 84 percent of consumers consider a good mobile network infrastructure more useful than road and energy networks. Network providers such as Deutsche Telekom, Telefonica & Co. are now publicly presenting themselves to their customers. The politicians in Brussels and Berlin consider data security more important, and even more so: they want to please US President Donald Trump. Despite an rapprochement with Chinese President Xi Jinping, Trump still wants to prevent Chinese providers like Huawei and ZTE from being in Europe, precisely because they are more innovative and cheaper than the two European operators, the Finnish company Nokia and the Swedish group Ericsson, which in turn cooperate closely with the United States. The US itself has little to offer in this area. Merz demands what is long possible To get into Washington, Federal Chancellor Friedrich Merz (CDU) even tries to deceive the citizens when he calls for supposed equality for EU companies in China: "European telecommunication companies have practically no access to their networks." Merz announces exclusion of Huawei from network expansion – despite lack of evidence for espionage Leipzig drone: Merz calls Russia attribution "court-proof"; government says "not criminal" In fact, Ericsson and Nokia still have a three percent market share in 5G equipment; they are even allowed to operate in the security-relevant core network. In addition, they research and produce in China. They also have a China risk. However, from the perspective of the European network operators, the proximity of Nokia and Ericsson to the US is even more problematic. Nokia and its US investor, the chip manufacturer Nvidia, are jointly developing the first commercial AI-RAN platform (Radio Access Network). Nokia even bought the US optical network specialist Infinera, and Ericsson the cloud communication provider Vonage. Huawei logo on a business in Shanghai. The planned exclusion of Chinese technology from the German 5G network causes a dispute between politicians and network operators. © Imago The US data centers, hyperscalers, and government networks are open to the companies. The price: increasing political dependence on Trump and others. In the arms sector, the two EU companies are also closely intertwined with the US through their subsidiaries Nokia Federal Solutions and Ericsson Federal Technologies Group. Both were approved as contractors for the Shield-IDIQ framework agreement of the US Missile Defense Agency. This amounts to 151 billion US dollars. Both supply tactical 5G technology for the US armed forces. And that is precisely why European telecommunication companies do not want to be totally dependent on China or the US. They want to spread their risk by cooperating with both. This also strengthens their negotiating position when purchasing equipment. The 17 EU network operators have now made this clear for the first time in an open letter to Brussels. Tim Höttges, the CEO of Deutsche Telekom, also sees it this way, although the US business is his biggest driver of profit. Billions for dismantling Removing Chinese technology from the European network would also cost "up to 40 billion euros." "This sector is deprived of the capital needed for fiber optics, 5G, and 6G," say the CEOs. The network would not become safer, better, and cheaper through dismantling, but rather less secure, worse, and more expensive. Apparently Agreement on Chinese Components in 5G Networks Europe in the US fight against Huawei is in focus The German federal government is not very interested. Interior Minister Alexander Dobrindt (CSU) asked again after the letter from the telecommunications managers: For the first time, the entire antenna access network is now defined as critical infrastructure, meaning the masts and transmission facilities through which millions of Germans telephone and surf every day. Dobrindt can now "prohibit the use of critical components of a manufacturer in the operator of critical facilities." This sounds nice and tough, but it is short-sighted, risky, and expensive. Your opinion is important to us. Send your feedback on this article to us: briefe@berliner-zeitung.de