Huawei should be allowed 5G role in Italy, says minister

5G testing spot provided by China Telecom is seen in Chengdu downtown. Italy’s Telecom Italia is in the process of choosing suppliers and Huawei is among possible contenders. (Shutterstock)
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Updated 23 December 2019

Huawei should be allowed 5G role in Italy, says minister

  • Stefano Patuanelli’s remarks follow parliamentary committee’s move to block the company

ROME: Chinese telecoms firm Huawei should be allowed a role in Italy’s future 5G network, the Italian industry minister said on Sunday after an influential parliamentary committee called on Rome to block the company.

The US has lobbied Italy and other European allies to avoid using Huawei equipment in their next generation networks and to closely scrutinize rival ZTE, saying the companies could pose a security risk.

“We have passed legislation that guarantees national security. With the right defenses, the possibility of (Huawei’s) access is not up for debate,” Minister Stefano Patuanelli, part of the ruling 5-Star Movement, told La Stampa daily.

Last week, Italy’s parliamentary security committee Copasir said the government should consider preventing Huawei and ZTE from taking part in the development of 5G networks.

Italy’s biggest phone group Telecom Italia (TIM) is in the process of choosing suppliers to upgrade its network infrastructure and Huawei is among possible contenders.

Cabinet undersecretary Riccardo Fraccaro, also a 5-Star member, said on Friday that the government would not be able to ignore the opinion of Copasir. But Patuanelli said on Sunday that “Huawei offers the best solutions at the best prices.”

“One cannot fly the flag of the market with one hand and that of protectionism with the other,” he added. 

Huawei rejects the allegations that it poses a security threat. 

Last week, Telenor said it will use equipment from Huawei in building Norway’s 5G network.

State-controlled Telenor picked Sweden’s Ericsson to help roll out its fifth-generation (5G) telecoms network.

Huawei will continue to play a role in modernizing its infrastructure, Hanne Knudsen, Telenor vice president for communications, told Reuters.

“Ericsson has been introduced as a new vendor for 5G RAN, but we will also work with Huawei both to maintain the 4G network and also upgrade to 5G coverage in selected areas of Norway,” Knudsen said in response to written questions.

“Huawei has delivered hardware for RAN, but not for the core network. When they will build 5G in selected areas for the modernization, this is also for RAN, not core,” she said.

Telenor’s Finnish subsidiary DNA also uses Huawei as one of several vendors for 5G RAN, Knudsen said.

RAN, or radio access network, refers to the radios and antenna that connect smartphones to the mobile network, and accounts for the bulk of the cost of a new network. It is not the core.

Telenor is using Finnish company Nokia and Ericsson for building its core network.

Telenor Norway boss Petter-Boerre Furberg told Reuters that Huawei network components would be phased out over the next four to five years.


Daimler lifts 2020 profit outlook as Mercedes-Benz margins rebound

In this Thursday, April 30, 2020 file photo, an employee attaches a Mercedes emblem as he works on a Mercedes-Benz S-class car at the Mercedes plant in Sindelfingen, Germany. (AP)
Updated 24 October 2020

Daimler lifts 2020 profit outlook as Mercedes-Benz margins rebound

  • Daimler said its outlook is based on the premise that conditions will continue to normalize and that no further setbacks occur as a result of the pandemic

FRANKFURT: German automaker Daimler raised its 2020 profit outlook on Friday as a 24 percent jump in demand for luxury cars in China in the third quarter, a new record, helped turn around margins at its Mercedes-Benz cars division.

Benefiting from improved pricing and a fall in fixed costs, adjusted return on sales at its Mercedes-Benz Cars & Vans division rose to 9.4 percent, up from 7 percent a year earlier and rebounding from minus 1.5 percent in the second quarter.
The car and truck maker said it now expected full-year earnings before interest and taxes (EBIT) to reach prior-year levels, compared with its previous expectation of a drop in earnings.
Daimler said it sold 45,000 hybrid and electric cars in the third quarter and expects sales to rise in the fourth quarter.

HIGHLIGHTS

• Expects full-year EBIT to reach 2019 levels

• Deliveries of luxury cars may fall in 2020

• China boosts Mercedes-Benz margins

These cars delivered a positive contribution to margin and would allow the carmaker to meet European Union emissions goals.
“We appreciate the fact the Mercedes can deliver very high margins whilst selling an increasing number of electrified vehicles (EVs). This should calm down some of the fears concerning alleged material profitability erosion from EVs,” Arndt Ellinghorst, analyst at Bernstein Research, said on Friday.
The company’s adjusted EBIT rose to €3.48 billion ($4.11 billion) in the quarter, up from €3.14 billion a year earlier.
However, quarterly deliveries of Mercedes Benz Cars and Vans were down 4 percent as the COVID-19 pandemic continued to weigh on demand, prompting Daimler to reiterate that it expects group unit sales and revenue in 2020 to be significantly lower than the previous year.
Daimler said its outlook is based on the premise that conditions will continue to normalize and that no further setbacks occur as a result of the pandemic.