Friday, December 3, 2021

China wants Compensation over Huawei

China wants Compensation over Huawei

  Dec 3 2021



In the latest on the Huawei saga in Canada, Global News is reporting Canadian telecom companies spent more than $700 million installing equipment while a decision on the legality of the company remains unknown.

The federal government has not ruled if it will ban the Chinese telecom giant because of national security concerns. The company told Global News roughly $300 million worth of equipment that would connect phones to networks was sold in 2018. Nearly $300 million worth was sold in 2019 and $100 million in 2020.

The National Post reported on November 26 that Bell and Telus asked the federal government to pay for the equipment the carriers installed, and a ruling against Huawei means the equipment will have to be replaced. Global News now says “multiple telecommunication companies” have asked for compensation and a decision will soon be made.

Both Bell and Telus have previously installed Huawei equipment to serve their existing older-generation networks, and it would have to be removed if the ban is retroactive

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Both Bell and Telus have approached the federal government over the possibility of being compensated by taxpayers, should they have to remove Huawei equipment from their networks, sources have told National Post. The two telecom companies could find themselves forced to replace the equipment if the Liberals end up banning the Chinese telecom equipment-maker from Canada’s 5G networks.

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