Page 31 - BNE_magazine_10_2020

bne October 2020 Companies & Markets I 31
Huawei is one of the global leaders in the development of 5G mobile telecommunications networks that are set to revolutionise services and which the EU countries are gradually rolling out.
Letting the Chinese company play an important part in the 5G build-up could pose a security risk, Poland has long said.
Warsaw and Huawei were at loggerheads in 2019 after an employee of the company and a former Polish security official were arrested on espionage charges.
Warsaw said in reaction it could bar Huawei from taking part in getting the 5G network communication standard up and running in Poland.
Poland is also wary of the Chinese company’s products and services following the US’ warning they could be a security
Russia's national program for digital economy stumbles
Vladimir Kozlov in Moscow
Russia's ambitious programme for digitalization of the economy is running behind schedule, and progress in several crucial areas has been slow.
Only one target out of 10 stipulated by the programme for the second quarter of this year was implemented.
Meanwhile, several major areas where the digitalisation scheme was expected to make a substantial impact are apparently struggling.
In particular there is little clarity when it comes to development of fifth-generation mobile networks (5G) in the country, one of the flagship projects under the auspices of the digitalisation programme.
Russian Mobile TeleSystems (MTS) received the first 5G licence in Russia for the 24.25-24.65 GHz band, Vedomosti daily reported on July 28, but previously 5G development came to a standstill when operators and the government failed to reach consensus on frequencies that should be allocated for new networks. While operators are demanding the 3.4GHz
to 3.8GHz band for 5G networks, law enforcement agencies, which currently use it, have been vehemently opposed to the idea of relinquishing that frequency band.
risk. The US Secretary of State Mike Pompeo reiterated those concerns during his tour of Czechia, Slovenia, Austria, and Poland last month.
Poland, along with other Central, Eastern and Southeast Europe countries, has been targeted by Chinese investors as Beijing rolls ahead with its multi-continental Belt and Road Initiative (BRI).
This has brought billions of euros into the region especially in areas such as energy and transport infrastructure, often where countries have struggled to get financing from other sources. For several years now, major investments have been announced with much fanfare at the annual 16+1 forum bringing together China and states from across the region.
The draft bill predictably does not name any names and its provisions could well be used to ban other technology and software providers, Politico Europe pointed out.
Russia's ambitious programme for digitalization of the economy is running behind schedule
Government officials admit that there is an impasse on 5G prospects. "A road map for stimulating investment [in 5G] cannot be agreed upon because operators want more support than what we can offer them at the moment," Oleg Ivanov, deputy communications minister, was quoted as saying by Kommersant, adding that the law enforcement agencies' stand on the issue makes the project uncertain.
Meanwhile, a source in a top Russian mobile phone operator was quoted by Kommersant as saying that there is no "acceptable dialogue" between operators and government agencies. In addition to the frequency band issue, the
source mentioned issues with operators' access to the wholesale electricity market and sites for building telco structures alongside major highway and railways "due to bureaucratic reasons."
Experts predict that an acceptable solution that would allow
a broad-based roll-out for 5G development in Russia is unlikely to be found before 2021. Subsequently, running frequency band contests and signing deals will take more time, and, as a result, operators will be able to plan investments in 5G no earlier than in 2022. This means that consumers won't get satisfactory 5G coverage earlier than in 2023.
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