Canada all set for a fight over $758 million compensation for Huawei gear

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Fight over compensation

Canada is giving a signal that they might not settle accounts with major telecommunications providers if the federal government bans completely equipment manufactured by China’s Huawei from 5G networks, setting up a fight over a bill that could hit $758 million.

Big pressure from the USA to ban Huawei Technologies on security ground but Canada is still thinking whether to permit the firm into the country next-generation 5G networks.

But if the Canadian government announced a formal ban than the affected companies will ask for compensation for tearing out their existing Huawei gear.

Two giant Bell Canada and Telus Corp said they would collaborate with Ericsson and Nokia Oyj but even though they use Huawei in their 4G networks.

According to many experts, it is hard to replace one company’s 5G High-end equipment with 4G equipment from another provider. However, in March US President Donald Trump signed a bill to help small providers in order to replace equipment made by Huawei and ZTE. 

Gyani Labs