Italy vetoes 5G deal between Fastweb and China's Huawei - sources

Credit: REUTERS/ALY SONG

Italy has prevented telecoms group Fastweb from signing a supply deal with Huawei for its 5G core network, two sources close to the matter said, the clearest sign yet Rome is adopting a tougher stance against the Chinese telecoms equipment maker.

By Giuseppe Fonte and Elvira Pollina

ROME, Oct 23 (Reuters) - Italy has prevented telecoms group Fastweb from signing a supply deal with Huawei HWT.UL for its 5G core network, two sources close to the matter said, the clearest sign yet Rome is adopting a tougher stance against the Chinese telecoms equipment maker.

At a cabinet meeting late on Thursday, the government used its special vetting powers to block Fastweb, the Italian unit of Swisscom SCMN.S, from implementing a supply deal with Huawei in the most sensitive part of its fifth generation mobile network, the sources said.

"The government has vetoed the operation, asking Fastweb to diversify its suppliers," a senior government source told Reuters.

Huawei declined to comment. No comment was immediately available from Fastweb.

(Reporting by Giuseppe Fonte and Elvira Pollina; Additional reporting and editing by Giselda Vagnoni; Editing by Jan Harvey)

((giuseppe.fonte@thomsonreuters.com; +390680307711;))

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