MADRID (Reuters) -The Spanish government has cancelled a fiber-optic service contract with Telefonica over the use of equipment made by China's Huawei amid concerns in Europe that such gear may pose a
Spain Terminates Telefonica's Contract Over Huawei Equipment Concerns
Impact of Huawei Gear on Spanish Telecom
MADRID (Reuters) -The Spanish government has cancelled a fiber-optic service contract with Telefonica over the use of equipment made by China's Huawei amid concerns in Europe that such gear may pose a security risk, the Digital Transformation Ministry said.
Government's Digital Strategy
"We confirm the cancellation of the contract for reasons of digital strategy and strategic autonomy," the ministry said in an emailed statement, without elaborating.
Telefonica's Response to EU Recommendations
The report by El Pais newspaper earlier on Friday also said that through this 10 million-euro ($11.7 million) contract, Telefonica was to supply fiber-optic connections to a series of government institutions including the Defence Ministry.
Comparison with Other European Countries
A Telefonica spokesperson declined to comment.
Telefonica's Chief Operating Officer Emilio Gayo told Reuters last month that the company was "reducing its exposure to Huawei" in Spain to comply with EU recommendations to telecom operators to phase out Huawei-made devices over security concerns.
While some European countries, including Germany, have passed outright bans on the use of Huawei gear, Spain has not, and the company is reportedly keeping some equipment from the Chinese producer for the retail 5G mobile network.
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(Reporting by Inti Landauro, Editing by Louise Heavens)
