Vodafone Sees EUR200 Million Hit From Plan to Limit Huawei Exposure in EU
05 Febrero 2020 - 06:54AM
Noticias Dow Jones
--Vodafone Group expects a EUR200 million hit amid plans to
remove Huawei equipment from the core of its EU networks
--CEO Nick Read said the company is closely engaged with
European governments regarding Huawei
--Huawei will continue to be an important supplier in
nonsensitive parts of Vodafone's networks
By Adria Calatayud
Vodafone Group PLC (VOD.LN) said Wednesday that it anticipates a
hit of around 200 million euros ($221.0 million) as it plans to
remove equipment made by Huawei Technologies Co. from the core of
its networks in the European Union.
Nick Read, chief executive of the U.K. telecommunications group,
said Vodafone has decided to replace Huawei in areas deemed
sensitive across the EU within five years, following a similar move
in its U.K. network last year.
The plan follows an EU recommendation to member states last week
to restrict high-risk equipment from sensitive parts of 5G networks
and a decision by the U.K. government to allow Huawei to build
parts of its next-generation cellular network, despite calls from
the Trump administration to ban the Chinese telecom-equipment
vendor.
"We are closely engaged with European governments on the Huawei
question," Mr. Read said.
The Chinese company will continue to be an important supplier to
both Vodafone and the overall telecom industry in the nonsensitive
radio-access network, Mr. Read said in a call with analysts after
Vodafone released its results for the third quarter of fiscal
2020.
Vodafone will have limited exposure to the U.K. decision to
limit the role of Huawei in the country's 5G networks as it is
already in compliance with the measure, Mr. Read added.
Rival BT Group PLC (BT.A.LN) last week warned that it expected
to book 500 million pounds ($650.6 million) in extra costs over
five years on the back of the U.K. government's decision.
Furthermore, Mr. Read said Vodafone's new European tower-asset
company will be incorporated in Germany and based in Dusseldorf.
The business is on track to start operating in May, as Vodafone
prepares a potential initial public offering in early 2021 and
explore the monetization of several individual markets in parallel,
Mr. Read said.
Vodafone said it has appointed Thomas Reisten, who is currently
chief financial officer of its Africa, Middle East and Asia Pacific
operations, as CFO of its European tower company. In November, the
company named Vivek Badrinath as CEO of the tower business.
Vodafone also said its in discussions with Deutsche Telekom AG
(DTE.XE) on an active sharing agreement for parts of their networks
in Germany.
Write to Adria Calatayud at adria.calatayud@dowjones.com
(END) Dow Jones Newswires
February 05, 2020 07:39 ET (12:39 GMT)
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