Goodale hasn’t heard talk about telco compensation in event of Huawei ban

OTTAWA — Public Safety Minister Ralph Goodale says compensation to Canadian telcos in the event of a Huawei Technologies Co. Ltd. equipment ban from Canada’s 5G networks hasn’t come up in government discussions about network security — or at least in none of the conversations he’s been part of so far. Goodale told The Wire Report Monday, just before appearing before a parliamentary committee hearing, that the government’s cybersecurity review is focused squarely on national security issues, after being asked about whether compensation or other such measures have come up in discussions about 5G security and the prospect of a Huawei ban. “I have heard no discussion of that matter,” he said of financial compensation. “My focus is very much on the security issues.” The government is in the midst of a cybersecurity review which is examining the risks of allowing Huawei equipment into Canada’s 5G telecom networks, amid U.S. pressure to ban the Chinese-based telecom equipment manufacturer from those networks over cyber spying fears. Earlier this month, Telus Corp.’s quarterly filings suggested the company and the telecom sector could suffer a pricing dynamic change, or even rollout delays, in the event of a Huawei ban unless the government did something to insulate telecom companies. “A decision prohibiting the deployment of Huawei technology without compensation or other accommodations being made by the Government of Canada could have a material, non-recurring, incremental increase in the cost of TELUS’ 5G network deployment and, potentially, the timing of such deployment,” read the company’s management discussion and analysis -- a document that outlines potential risks and challenges the company may face in the future. “In the case of a ban, there is a risk that the Canadian telecom market would undergo a structural change, as a reduction to an only two global supplier environment could permanently affect the cost structure of 5G equipment for all operators.” Goodale only said Monday that Ottawa is proceeding on the review in a “very meticulous way.” “Our examination is not related to one particular company or one particular country. We’re concerned about security and successful science from one end of the supply chain to the other and we will make a decision that reflects Canada’s best interest.” The Opposition Conservatives have been pressing the government for a Huawei 5G ban but politicians of all stripes are watching the issue closely. During Monday’s committee hearing, Liberal MP Pam Damoff asked Goodale if there was an update on when the security review will conclude. “The issue is under very careful review,” Goodale replied. “I don’t think today I can predict a precise timeline.” Goodale said in late January the review will be thorough and that a decision would not be made in the near-term, but is “some ways off into the future yet.” BCE Inc. and Telus have done early work with Huawei on 5G and use it in their current networks, but the heads of both companies said this month they have not yet selected their 5G vendors. Both moved to reassure investors their respective companies wouldn’t be affected by a ban. The Globe and Mail has reported -- citing anonymous industry sources -- that Telus and BCE could face some $1 billion in costs if Ottawa bars Huawei from 5G networks, but some financial analysts have suggested any real impact on those companies would likely be negligible.

Goodale hasn’t heard talk about telco compensation in event of Huawei ban

Brief | February 25, 2019

Unlock all the Canadian telecom, broadcasting and digital media news you need.

FREE TRIAL

SUBSCRIBE

Inside The Wire Report

Information

Hill Times Publishing

Get in Touch With Us

Goodale hasn’t heard talk about telco compensation in event of Huawei ban

Brief | February 25, 2019

Unlock all the Canadian telecom, broadcasting and digital media news you need.

FREE TRIAL

SUBSCRIBE

Related Stories

Ericsson invests $634 million in R&D in Canada

Ericsson proud of research and development facilities in Canada

Rogers spends $8 million upping capacity at Toronto stadium; TTC work remains underway

SaskTel rolls out 5G service to more than 50 rural and remote areas

Reuse & Permissions

Inside The Wire Report

Information

Hill Times Publishing

Get in Touch With Us