Huawei decision coming “in weeks”, Champagne says; Opposition says no to telecom payouts

OTTAWA – Innovation, Science and Industry Minister François-Philippe Champagne says the government will announce a decision on the use of Huawei Technologies Ltd. equipment in Canada’s 5G rollout soon, although he would not be specific about a date. “Well, the Prime Minister has been pretty clear with Canadians on that, that it was a matter of weeks,” he said Tuesday before entering the House of Commons for Question Period. “When it comes to a decision which is going to be so consequential for future generations, Canadians would understand we want to make sure we take the right decision. The telecom infrastructure for 5G in particular will be with us for decades to come. So national security comes first.” Earlier this month at a conference, China’s ambassador to Canada, Cong Peiwu, warned the Canadian government not to bar Huawei from the 5G grid. “That will be sending out a very wrong signal to the Chinese companies,” Peiwu said Dec. 7. “I would like to suggest someone is trying to politicize the issue…to try to abuse and overstretch the concept of national security, and that is not conducive for people doing business here in Canada.” A few days earlier, on Dec. 4, Shadow Minister for Innovation, Science and Industry, Ed Fast, and Conservative Public Safety critic Raquel Dancho wrote a letter to Champagne and Public Safety Minister Marco Mendicino urging them to turn Canada’s major incumbent telecoms down which are lobbying for reimbursement of any Huawei equipment that would have to be uninstalled if the prime minister rules against the Chinese manufacturer. “Canadian consumers already pay some of the highest monthly fees for cellphone service in the world,” the letter stated. “Moreover, Canadian taxpayers –who are already experiencing record-high inflation, and struggling to afford basic necessities like groceries, gas and home heating– should not be forced to subsidize the private business decisions of some of Canada’s most profitable companies.” The Conservative party has come out against using Huawei for any of the 5G rollout. NDP industry critic Brian Masse echoed Fast and Dancho’s sentiments. “Most of their equipment is used for 4G,” he told the Wire Report Tuesday. “There’s no need to bail them out.” The incumbents have in fact continued to deploy Huawei gear for 5G. Even if the companies don’t get government funds for junking the equipment there could be other ways to get money. Reuters reported in late November that 13 European telecoms–led by Deutsche Telekom and Vodafone–are asking American tech giants to help fund European network rollout because the Americans profit so much from it. “A large and increasing part of the network traffic is generated and monetized by big tech platforms, but it requires continuous, intensive network investment and planning by the telecommunications sector,” a statement by the 13 CEOs said. “This model–which enables EU citizens to enjoy the fruits of the digital transformation–can only be sustainable if such big tech platforms also contribute fairly to network costs.” No American firms were named but Reuters claims tech companies like Netflix and Facebook are the targets. Asked to comment on the Huawei bailout and the European request, Rogers Communications Inc. and Quebecor Inc. declined to respond. BCE Inc, Telus Corp., and Saskatchewan Telecommunications Holding Corp. did not reply to Wire Report emails. –Reporting by Paul Park at ppark@thewirereport.ca and editing by Jenna Cocullo at jcocullo@thewirereport.ca

Huawei decision coming “in weeks”, Champagne says; Opposition says no to telecom payouts

News | December 14, 2021

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Huawei decision coming “in weeks”, Champagne says; Opposition says no to telecom payouts

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