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Canada is unlikely to compensate domestic telecom operators if the federal government bans equipment made by China’s Huawei from 5G networks, setting up a potential fight over a bill that could hit C$1 billion ($758 million). Canada, under pressure from the United States to ban Huawei Technologies’ 5G network on security grounds, is studying whether to allow the firm into the country’s next-generation 5G networks, Reuters reported.
The United States and United Kingdom have already banned Huawei from the supply of 5G network to mobile operators.
Telecom service providers are looking for compensation for removing their network supplier if Canada bans the use of mobile equipment supplied by Huawei. China-based Huawei is the number one telecom network supplier.
“I’m not sure there is a solid legal case that we would have to compensate for making a proper national security decision,” said a government source. Federal politicians also had to worry about “the public perception of handing over a billion dollars or more to very large companies.
Ottawa has spent almost two years studying whether to allow Huawei into 5G networks and in June, with no sign of a decision coming any time soon, impatient Canadian providers took matters …
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