The Stockholm Administrative Court has temporarily declared Huawei’s exclusion from the auction of 5G frequencies in Sweden invalid. The decision of the regulatory authority to exclude Chinese suppliers Huawei and ZTE from the auction can be appealed, the court announced in Stockholm on Monday evening. The rules concerning Huawei are not to be applied until further notice because the outcome of the proceedings is uncertain "be considered uncertain" . As a result, the regulatory authority PTS has cancelled at short notice the start of the auction planned for Tuesday.
Auction cancelled at short notice
In October, PTS announced the conditions for awarding a 5G license and explicitly excluded Chinese providers Huawei and ZTE from the 5G rollout. Network operators who would like to receive a usage permit for the auctioned frequencies must therefore refrain from using the Chinese suppliers. In addition, existing Chinese hardware that takes over central functions is to be replaced by 2025. The administrative court has now temporarily annulled these regulations following a complaint by Huawei.
The auction of the 3.5 and 2.3 GHz frequencies was supposed to start on Tuesday. It remains to be seen when the auction can start. It will depend largely on how long the legal battle over award conditions lasts. The administrative court stayed the rules for purposes of preemptive relief, but has not yet ied a decision on the merits of the case. "PTS will continue to analyze the decision of the administrative court and will examine the possibilities of launching the auction as soon as possible," the regulator said Tuesday", the regulatory authority said on Tuesday.
Huawei and ZTE are controversial
"We welcomed the Swedish administrative court’s decision to suspend Huawei’s market exclusion from 5G rollout in Sweden until further notice", said a spokesperson for the company. "We believe that the decision to deny network operators the ability to deploy Huawei technology is based neither on due process nor on an understandable reason." The decision of the regulatory authority lacks neutrality, independence and objectivity. "We do not see any comprehensible reasons for market access restrictions."
Huawei and ZTE are controversial, in part because the U.S. government is pushing hard for a waiver. Washington accuses the rusaders of maintaining too close contacts with the Chinese military and the Chinese Communist Party. Other countries also perceive this as a security risk. Huawei always rejects the accusations. A possible exclusion of Huawei is also the subject of controversial discussion in Germany. The company has supplied many providers in Europe with infrastructure for the existing 4G network (LTE) and has also played a role in their 5G plans. However, European network operators are increasingly turning to alternative providers such as Ericsson and Nokia, at least for their core networks.