However, the US, UK, and other European countries have restricted the use cases of equipment made by the Chinese tech giant. Also, Huawei’s inclusion in the U.S. Entity List created a lot of difficulties for the company and restrictions that prohibit the purchase of U.S.-made technologies such as chipsets, and other important components.
Recently, a source report reveals that during the public hearing on the 5G network, Brazilian Communication Minister, Fabio Faria disclosed that Huawei will not be considered as a private communication network supplier to the government’s own set-up.
Some representatives asked the communication minister regarding the ban of the Chinese supplier for the particular project. Faria replied the Chinese tech giant does not fulfill the requirements of Brazilian telecommunications agency Anatel, which was recently set out.
Additionally, she said Jair Bolsonaro’s government will not prevent any country or organization from doing business in Brazil. But it can define the criteria for its own network, such as requiring that its suppliers follow corporate governance rules compatible with what is in place in companies that are publicly listed in Brazil.
Brazil’s 5G auction is going to happen in June 2021. As per Anatel, the initial cost to telcos to use the 3,5 GHz frequency bands is estimated to reach 35 billion reais (US$ 6.2 billion). Companies will also need to invest an additional 80 billion reais (US$ 14 billion) on 5G through the next two decades.
On this matter, Huawei representatives repeated that Huawei follows several standards of corporate governances, is audited yearly by KPMG. Also, it is confident that it meets the technical criteria in aspects such as security. However, the company is still trying to ascertain whether it meets the non-technical rules relating to the private network.
“Huawei has been in Brazil for over 23 years, always working with integrity, ethics, and transparency. We are committed to our customers, partners, and the digital transformation of the country”, Huawei added when asked for comment on the latest developments.