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Banning Huawei from building new 5G wireless network won’t really hurt Canada’s big telecom firms

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If the federal government moves to ban Huawei from working to build Canada’s new 5G network, it is unlikely to have a major financial impact on two of the country’s top communications companies who have partnered with the China-based firm, analysts say.

Huawei’s equipment is already used in telecommunications infrastructure run by Canada’s major cellphone carriers, namely BCE and Telus. Those two companies are currently in 5G pretrial stages with Huawei, a company some western intelligence officials consider a security risk due to its links with China’s government. 

As the next-generation wireless technology, 5G promises to deliver much faster internet download speeds — possibly up to 200 times faster than today’s LTE networks.

Desmond Lau, a telecommunications analyst with investment research firm Veritas, said BCE and Telus have not put a lot of capital into 5G trials, so the financial hit from a ban on Huawei’s participation wouldn’t be large.    

“It doesn’t sound like all that much has been spent on 5G,” Lau said, adding that neither company has disclosed what they have spent so far. 

“They also have Nokia as another 5G partner, so they could probably just switch all toward Nokia if they really needed to.”

BCE and Telus did not respond to inquiries from CBC News about their relationship with Huawei on building Canada’s 5G network. 

The Sydney Morning Herald, an Australian newspaper, has reported that Ottawa could announce a formal ban on Huawei building the 5G network within weeks. Public Safety Minister Ralph Goodale has called those reports “speculation.”

‘Not arrived at a conclusion’

“The issues are being very carefully considered by Canadians. We have not arrived at a conclusion,” Goodale told CBC Radio’s The House.

According to a Scotiabank telecommunications report, both BCE and Telus use radio access networks (RANs), equipment located at the top and bottom of cell sites, produced by Huawei. 

“To our knowledge, Huawei does not supply the network core, which is software based and considered to be the most sensitive part of the network from a privacy and security perspective,” the report states.

For years, Huawei has been a source of concern for Western security officials, particularly the U.S., which has tried to convince other countries not to buy equipment from the company.

Public Safety and Emergency Preparedness Minister Ralph Goodale calls reports that Ottawa will ban Huawei from Canada’s 5G network ‘speculation.’ (Adrian Wyld/Canadian Press)

Huawei denies allegations that it conducts espionage on behalf of China and has said it’s a market-driven business simply looking to compete internationally.

“Huawei has been working with Canadian operators on a number of pre-commercial trials in the lead up to 5G,” said Scott Bradley, a spokesman for Huawei Canada. “These efforts will ensure Canada is well positioned to be one of the early leaders in 5G globally, and will benefit Canadians in applications as diverse as greatly improving rural service, to spurring new innovations requiring increased speeds and capacity.”

This next generation technology will also open up what analysts refer to as the “internet of things,” which would allow everyday devices and machines be connected to a wireless network.

‘Ground-breaking trials’

 “These ground-breaking trials are laying the foundation for 5G, which will enable the likes of driverless cars; smart cities; new innovations in healthcare; as well as yet-to-be-imagined applications, devices and services powered by astonishingly fast and reliable wireless connections,” Telus said in a news release.

But with 5G, one of the concerns is that the network would be more vulnerable to attack. If Huawei has some kind of relationship with the Chinese government, the fear is that the company could install a “backdoor” in the 5G network, possibly allowing access to the network, and creating the potential for widespread disruption.

New Zealand and Australia have banned Huawei from working on their 5G networks. And British phone carrier BT said it would not use their equipment for its planned 5G mobile network. The U.K. company is removing Huawei equipment from the core of its existing 3G and 4G mobile phone networks.

If a similar move to rip out and replace existing Huawei infrastructure were to happen in Canada, it “would obviously be very costly,” according to the Scotiabank report.

Replacing Huawei products in Canada’s existing 3G and 4G mobile networks could cost more than $1.2 billion, Scotiabank’s report said. 

“If logic prevails, even if a ban was to occur, we think it would be on 5G only,” said the report. “We believe this will be more manageable” as there is “limited 5G equipment at the cell sites today.”

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Independent Consultant Beginner – 6 Should Have Pieces Of It Technology And Software

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Prima Wireless Earbuds Reviewhttps://primawirelessearbuds.net/.

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What Make Sure You Really Know Right Anyone Decide To Travel

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When traveling with children advised plan your route in advance. Do a little research and see as relevant and fun places to stop such as parks, museums or other attractions. Once you take breaks every non-chemical hours so everyone maybe even including the children probably get out and stretch their legs.

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Majority of Canadian workers willing to take less pay for a workplace pension plan: survey

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A majority (70 per cent) of Canadians say they’re willing to forgo a higher salary in exchange for a workplace pension plan, according to a new survey for the Healthcare of Ontario Pension Plan by Abacus Data.

The survey, which polled more than 2,000 Canadian adults in April, signals an opportunity for employers to build back the post-coronavirus pandemic working landscape better by expanding access to good retirement plans — whether they’re defined benefit, defined contribution or group registered retirement savings plans, says Steven McCormick, senior vice-president of plan operations at the HOOPP.

According to the survey, a secure retirement remains of greater concern for Canadians than concerns about their health, debt load and job security. McCormick says this has been a consistent worry the HOOPP has seen in survey results over the past couple of years. Nearly half (48 per cent) of respondents said they’re very concerned about having enough money in retirement, while 31 per cent were highly concerned about their personal debt load and 26 per cent cited their job security. Close to half of respondents expressed high concerns for their physical (43 per cent) and mental (40 per cent) health.

In addition, the pandemic has harmed the finances of more than half (52 per cent) of Canadians’ surveyed and it’s had a particularly disproportionate affect on the finances of younger adults. Adults aged 44 and younger said they’re twice as likely (25 per cent) to have had their finances greatly harmed, compared to those over the age of 60 (12 per cent).

Generally, younger adults tend to work in roles that may have been impacted most by the pandemic, says McCormick, whether in service industries that were shut down or frontline health care that have been busy but don’t always come with access to a pension plan. “Affordability is an issue, so I think their worries increased during this time.”

And while almost half (46 per cent) of Canadians surveyed said they’ve saved more money than they would have since the onset of the pandemic, among these respondents, over half (52 per cent) didn’t put any of their savings toward their retirement. Overall, most (63 per cent) Canadians surveyed haven’t set aside or saved anything for retirement in the past year, a five-point increase since 2019.

McCormick says this may be due to uncertainty or hesitancy about whether people’s immediate needs outweigh longer-term needs. And with 55 per cent of respondents noting they were very concerned about the cost of day-to-day living, he adds that rising prices have fuelled insecurity and worries so people are creating their own emergency funds right now.

While there’s a segment of the population who’ve saved more and, for them, the pandemic has created wealth, he doesn’t see this as a common narrative in the survey data. “If you don’t have access to a workplace pension or the opportunity to have things like automatic enrolment, the uncertainty of the time may have you holding onto money,” says McCormick. “In Ontario, we’re more optimistic about the pandemic than we were maybe a month ago, but there are still people worrying about whether there’ll be a fourth wave.”

In addition, more than two-thirds (67 per cent) of respondents said a retirement crisis is looming and 65 per cent said saving for retirement is prohibitively expensive. It’s a common and shared dream for many people in looking forward to a secure retirement, says McCormick, noting for many, making that dream a reality remains elusive.

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