Canada joined the U.S. and other Western allies in banning 5G network equipment from Chinese companies.

There are contents.

  • How we got here
  • What this means

The security threat posed by the two companies due to their close relationship with the Chinese government was the reason for the decision. The ownership status of the two companies is a bit murkier, but they have a very close relationship with Beijing.

Huawei logo seen on a banner at MWC.
Kārlis Dambrāns/ Flickr

Let me be clear. Canada's minister of innovation, science, and industry said that they will always protect the safety and security of Canadians. Champagne was Canada's minister of Foreign Affairs before taking on that post.

The complete ban won't come into effect until June 28, 2024, which means that all existing equipment from the two companies will have to be removed from the networks. The government wants service providers to stop buying new 4G and 5G equipment from the two companies as of September 1, 2022. Most Canadian wireless carriers have avoided equipment from the two Chinese companies while building out their 5G networks.

The ban on all 4G equipment from the two Chinese telecom companies is not set to take effect until the end of 2027. Existing 4G equipment must be removed from Canadian telecom networks. The Canadian government won't reimburse carriers that installed equipment from the banned Chinese telecom providers.

The new policy doesn't prohibit the sale of phones to consumers. Canadian carriers stopped carrying the phones from the Chinese company years ago.

How we got here

The FBI Director warned the U.S. and its allies against buying Chinese telecom equipment in February of last year.

Australia became the first country to ban the equipment from its 5G roll out. Trudeau emphasized that Canada would rely on its own internal security agencies to advise the government on the security of its telecommunications networks.

The U.S. senators asked Canada to ban the company from its 5G roll out. The rules for U.S. government agencies and departments remained in place even after Donald Trump relaxed some of the restrictions.

Goodale said that Canada was seeking more information from the U.S. about the potential security threat. Goodale said it was unlikely a decision would be made before the election.

In 2020, the U.K. joined its other two Five Eyes allies, and all equipment was phased out by 2027. The opposition parties in the Canadian Parliament passed a nonbinding motion in November of 2020 asking the government to ban Huawei by the end of the year, but Canada continued to drag its heels.

The Public Safety Minister said at the press conference that there was an extensive and thorough security examination of 5G and wireless telecommunications technologies.

Multiple sources within the government have said that the delays were partially motivated by diplomatic concerns. Canada was in an uncomfortable position of having two Canadians in a Chinese prison. The two Micheals were taken into custody on espionage charges after the arrest of a Chinese executive at the airport in Canada.

The two Michaels were put on a plane back to Canada on the same day that a Canadian court dropped her case. The decision announced this week finally brings the ban to a conclusion, as Prime Minister Trudeau said three days later.

What this means

The Canadian telecommunications landscape will likely not be affected by the ban. When they were still planning their 5G networks, most carriers avoided Chinese 5G equipment like the plague.

Bell and Telus, two of Canada's biggest wireless network operators, are partnering with two other companies in 2020 to build out their 5G networks. Rogers, Canada's third major carrier, has a long-standing partnership with the Swedish company.

Toronto skyline with buildings and C.N. tower against a sunset.
Marcin Skalij / Unsplash

Bell and Telus won't have to remove their 4G equipment until the end of 2027, which is when 4G/LTE networks will be phased out.

The O-RAN Alliance is a group of wireless providers and vendors who have been working together to eliminate proprietary systems and ensure that gear from multiple manufacturers can work together. The O-RAN alliance does not have a member like Huawei.

Carriers no longer need to rely on equipment from a single vendor as they deploy 5G networks based on O-RAN, which will reduce the negative impact should a company go out of business or equipment become unavailable due to sanctions.

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