& cplSiteName &

Huawei Denied German Bid

Ray Le Maistre
5/10/2012
50%
50%

10:45 AM -- The list of countries where Huawei Technologies Co. Ltd. has been denied the chance to compete for business has grown again, with Germany the latest market to give the vendor further cause for concern.

Having already experienced the political cold shoulder in Australia, India and the U.S., Huawei has now been excluded from bidding for business at a major German research network where it was an incumbent supplier. (See Huawei Ban Row Escalates, US Blocks Huawei LTE Bid , Global Vendors Face Tough New Rules in India and More Security Woes for Huawei.)

Deutsches Forschungsnetz (DFN), Germany's national research and education network that stretches about 10,000 kilometers to connect about 60 sites, is to upgrade its network from 10 Gbit/s to 100 Gbit/s using technology only from European suppliers, according to Wirtschafts Woche and several other German media outlets.

Alcatel-Lucent (NYSE: ALU), Nokia Networks and T-Systems International GmbH have been shortlisted for the upgrade.

Chinese vendors are not being considered, it seems, because of security concerns, even though the current DFN network has been using Huawei equipment since 2005.

Lewis Xu, the CEO of Huawei Germany, expressed incredulity at the decision in a statement issued to the German press, saying that to exclude Huawei from the process is incomprehensible.

What must be more worrying for Huawei is that concern about cyber security is increasing and that many companies and national agencies point the finger at China as a prime source of political and industrial espionage attacks. (See Nortel Got Super-Hacked and this Bloomberg report, for example.)

It's hard to imagine that Huawei and other Chinese vendors, no matter how many existing national deployments and words of support they have, are going to find anything other than increasing resistance and further restrictions when it comes to their involvement in the construction of important national networks in the near term.

— Ray Le Maistre, International Managing Editor, Light Reading

(33)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
Page 1 / 4   >   >>
digits
50%
50%
digits,
User Rank: Light Beer
12/5/2012 | 5:33:30 PM
re: Huawei Denied German Bid


Looks like Huawei's biggest challenge now is not in the R&D labs but in the marketing and communications departments...

geekhole
50%
50%
geekhole,
User Rank: Light Beer
12/5/2012 | 5:33:30 PM
re: Huawei Denied German Bid


Security concerns aside, until Huawei goes public and pays dividends, benefiting global shareholders, mutual funds, 401ks. retirement accounts, etc. they willl continue to get the cold sholder. They need to spread the wealth or the wealth will stay with those that do!

Flook
50%
50%
Flook,
User Rank: Light Beer
12/5/2012 | 5:33:27 PM
re: Huawei Denied German Bid


Weird that the Germans have deployed Huawei's equipment and are now shutting the door on Huawei. Regarding security, don't domestic networks often connect to national and international networks? In which case traffic from an NSN network for a particular customer could very well be going across a network built with Huawei gear--and there goes security out the door...


 


It's a global, interconnected world, so risks will be involved.

Ktan8888
50%
50%
Ktan8888,
User Rank: Light Beer
12/5/2012 | 5:33:25 PM
re: Huawei Denied German Bid


Obviously this is the protectionism in play..


 


 

Soupafly
50%
50%
Soupafly,
User Rank: Light Sabre
12/5/2012 | 5:33:24 PM
re: Huawei Denied German Bid


Branding it protectionism is just lazy.


The article provides no depth beyond obvious soundbites & trivial analysis.


To comment, you usually need to have a reasonable understanding. Based on the syndicated german content you have provided links to in the article, how anyone can arrive at any kind of understanding is beyond me!?


The fact that this network already used Huawei gear is what makes this unusual. The layer at which this exclusion has been imposed is also intriguing. The network deployment referenced would appear to be Layer 1 optical equipment in bias & focus.


What new "security concerns" have been identified?


Was it:


a) They found a "bird on the wire"?


b) Have seen a specific APT attack vector exploited or launched & traced the source?


c) Discovered a point of "Intellectual Property" compromise, directly connected to the network? (The most likely.)


d) Examined the layer 2 & 3 functionality/features on these platforms & decided that these represent a new risk that was not present in the original equipment? (An important trend in Packet Optical & pure optical is the convergence of traditional multi-layer functionality.)


e) None of the above & a new completely "concern"?


In the security community at the moment, the level of expertise & prowess been consistently demonstrated  by chinese hackers is worrying and has raised alarm bells. The speed & capability escalation has caught many by suprise. In 2005, the level of assessed risk & maturity was considered acceptable.


In 2012, that risk assessment barometer reading & the comfort zone around it, may have shifted. 


Couple that trend and its rapid acceleration with a strength in depth around science & mathematics (at the academic level) and you can see how original decision taken in 2005 may come under additional scrutiny and be re-evaluated.


The continued nonsensical statements from the party that "we are victims & know nothing of these attacks" is incredulous & laughed at by many within the community.


And before anyone crys prove it! Consider, the fact that the chinese networks are THE most overtly policed & monitored networks on earth, with inline & offline DPI, routine traffic mirroring, no privacy frameworks and complete compliance and oversight assumed by default. Then move that datapoint across all key intra-regional & national nodes and global IP Transit ingress/egress points & inter-connect and look at the ongoing, detailed traffic analytics.


Now I know the above statements are true because of actual conversations in this community. This is not spun, rumour-mill.


So with all of the above... what would you do if you were charged with making the call today? I am not taking a moral or ethical stand on this, just a pragmatic one and if I were in their shoes, I might make the same call. Note; Use of the word "might" not would. I dont have all the facts, just an insight into what they might be seeing.


 

macster
50%
50%
macster,
User Rank: Light Bulb
12/5/2012 | 5:33:24 PM
re: Huawei Denied German Bid


Ray,


As the article itself says, they've been using Huawei since 2005, but now a change of tone?


Marcomms? Come on! This is so obviously European bigotry and hypocrisy in play - no more, no less.

digits
50%
50%
digits,
User Rank: Light Beer
12/5/2012 | 5:33:23 PM
re: Huawei Denied German Bid


SO what I am saying is that it's not a technology challenge -- Huawei's marketing and communications team have to figure out how best to overcome the (choose your favorite term) political/protectionist/bigoted/xenophobic challenges the company now faces.


And not marcomms directed solely (or even primarily) at the direct customers but at the broader political and industrial landscape.

digits
50%
50%
digits,
User Rank: Light Beer
12/5/2012 | 5:33:22 PM
re: Huawei Denied German Bid


T-Systems is not an equipment vendor, but is an integrator, so it would be taking third party equipment into this if it is successful. (I would put mt bet on T-Systems or NSN winning this deal...)


I suspect that there is an lement of outsourced network management in this, where the winner(s) would not only provide the equipment but be involved in the rollout and maybe even ongoing management of the network. That's something that ALU, NSN and T-Systems could do, though, of course, Huawei could do that too. 

cross
50%
50%
cross,
User Rank: Light Beer
12/5/2012 | 5:33:22 PM
re: Huawei Denied German Bid


Ray, is it correct that T-Systems International is bidding for DFN's new network?  T-Systems is a subsidiary of Deutsche Telekom and not a vendor.  Traditionally, T-Systems often offers Cisco-based solutions.  It is a question whether Cisco qualifies more as a European vendor than Huawei does.  Both vendors have offices, R&D centers etc. in Europe but are headquartered outside Europe.


Carsten

macster
50%
50%
macster,
User Rank: Light Bulb
12/5/2012 | 5:33:21 PM
re: Huawei Denied German Bid


Soupafly,


Having worked for Huawei, European vendors and operators, the consulting arm of DT, I do know what I am talking about (and definitely do not need a long comment to justify).


Like Phil says, this is not a technology issue. Not even marcomms!


What would you say if China bans Cisco, ALU, E\\\, citing 'security concerns'? You'll think of it as a joke, right? Yup, Huawei is a terrible and corrupted company. ALU, Siemens and others are righteous. Asian nations are corrupted. No corruption in EU/UK/US, merely Cash for Honours, Cash for PM Access, etc. Right?


Have the decency to call it what it really is. I know, I know..... the truth hurts!!!

Page 1 / 4   >   >>
More Blogs from EuroBlog
Having taken a breather from its acquisition spree in the US, Zayo could kick-start some infrastructure consolidation action in Europe
Some good news for its Finnish parent – Nokia Siemens Networks is on a margin roll
Telefónica to boost its broadband lines in LatAm with DSL management the from ASSIA
According to the value of Nokia's takeover deal, Nokia Siemens Networks is worth less than $5B
As APAC and North America forge ahead, Europe seems stuck in yesteryear
From The Founder
The time has come for a telecom app store to save the industry.
Flash Poll
Live Streaming Video
Charting the CSP's Future
Six different communications service providers join to debate their visions of the future CSP, following a landmark presentation from AT&T on its massive virtualization efforts and a look back on where the telecom industry has been and where it's going from two industry veterans.
LRTV Documentaries
Service Provider Panel: Partnering in the Digital Era

5|22|17   |     |   (0) comments


Coopetition has always been part of telecom, but the ecosphere now includes data centers, vendors, apps developers, cloud service providers and Internet content providers. This BCE 2017 panel explores the new attitudes among network operators as to the value and variety of ...
LRTV Interviews
Site Demo: AT&T's IoT Flow Platform

5|19|17   |   04:25   |   (0) comments


At AT&T's R&D center in Tel Aviv, Israel, project leader Eyal Segev talks about the operator's Flow platform and how it helps to prototype IoT applications.
LRTV Documentaries
Agent of Change: A Q&A With AT&T's John Donovan

5|18|17   |     |   (0) comments


Carol Wilson talks with the man leading AT&T's transformation efforts about the challenge of change.
LRTV Documentaries
BCE Service Provider Panel: The New Business Realities

5|18|17   |     |   (0) comments


For virtualization to happen, the telecom industry first has to grapple with key functional aspects of SDN and NFV that need to be universal, such as onboarding of virtualized network functions and federation of software-defined networks.
LRTV Interviews
BCE Service Provider Keynote: CenturyLink

5|16|17   |   22:32   |   (0) comments


Aamir Hussain leads the Product Development and Technology organization at CenturyLink, which includes the company's information technology function. He is an experienced senior technology executive with more than 25 years of proven success in the implementation of global technology operations, operationalization of complex technology, infrastructures and business ...
LRTV Interviews
CenturyLink CTO on Transformation

5|16|17   |   7:43   |   (0) comments


The 50-year-old telco has already gone through several transformations, including every time it made an acquisition, but its purchase of Level 3 coupled with changes in technology and customer expectations necessitates its biggest transformation yet.
LRTV Documentaries
Light Reading Hall of Fame 2017

5|15|17   |   5:05   |   (1) comment


Find out who made it into Light Reading's Hall of Fame this year.
LRTV Interviews
Site Visit: AT&T's Tel Aviv R&D Center

5|15|17   |   09:58   |   (1) comment


Nir Shalom, general manager and VP of application development at AT&T Israel, talks about the key service developments undertaken at the AT&T R&D facility in Tel Aviv and how the team there has adopted new ways of working.
Telecom Innovators Video Showcase
Act on Your Intelligence With Amdocs aia!

5|15|17   |     |   (0) comments


Amdocs CMO Gary Miles explains how communications service providers can seize the AI opportunity with Amdocs real-time digital intelligence platform.
LRTV Interviews
Logtel CEO: Making Sense of IoT

5|15|17   |   09:48   |   (0) comments


Jacques Bensimon, founder and CEO of Tel Aviv-based training and consultancy Logtel, talks about the need to make IoT more than just a buzzword.
LRTV Huawei Video Resource Center
The Challenges of Mobile Banking Implementation

5|12|17   |     |   (0) comments


Kamal Quadir of bKash Limited explains the challenges and needs of implementing mobile banking in the Bangladesh market.
LRTV Interviews
Tel Aviv: A Hub of Innovation

5|10|17   |   07:58   |   (0) comments


Light Reading's Ray Le Maistre and Dan Allen discuss the technology innovation, food and amazing sights they witnessed during a recent trip to Israel.
Infographics
With the mobile ecosystem becoming increasingly vulnerable to security threats, AdaptiveMobile has laid out some of the key considerations for the wireless community.
Hot Topics
BSS Is BS, Says KPN Tech Boss
Iain Morris, News Editor, 5/16/2017
AT&T's Donovan: Women Adapt Faster Than Men
Sarah Thomas, Director, Women in Comms, 5/18/2017
Verizon on M&A: Who Needs a Cableco?
Mari Silbey, Senior Editor, Cable/Video, 5/17/2017
Standardization Needs Room for Innovation
Mitch Wagner, Editor, Enterprise Cloud, 5/17/2017
Fright Wigs & Cocktails: BCE 2017 in Pics
Mitch Wagner, Editor, Enterprise Cloud, 5/19/2017
Like Us on Facebook
Twitter Feed
BETWEEN THE CEOs - Executive Interviews
One of the nice bits of my job (other than the teeny tiny salary, obviously) is that I get to pick and choose who I interview for this slot on the Light Reading home ...
TEOCO Founder and CEO Atul Jain talks to Light Reading Founder and CEO Steve Saunders about the challenges around cost control and service monetization in the mobile and IoT sectors.
Animals with Phones
Live Digital Audio

Playing it safe can only get you so far. Sometimes the biggest bets have the biggest payouts, and that is true in your career as well. For this radio show, Caroline Chan, general manager of the 5G Infrastructure Division of the Network Platform Group at Intel, will share her own personal story of how she successfully took big bets to build a successful career, as well as offer advice on how you can do the same. We’ll cover everything from how to overcome fear and manage risk, how to be prepared for where technology is going in the future and how to structure your career in a way to ensure you keep progressing. Chan, a seasoned telecom veteran and effective risk taker herself, will also leave plenty of time to answer all your questions live on the air.