The decision aligns with national regulations — Telefónica will continue using Huawei gear in Brazil, where no such restrictions currently exist
In sum – what to know:
In compliance – Telefónica is phasing out Huawei from its 5G networks in Spain and Germany to comply with local security regulations, while maintaining its use in Brazil and other Latin American markets where no such restrictions exist.
A need for region-specific strategies – The move reflects the need for region-specific telecom strategies, as operators navigate diverging regulatory landscapes and increasing pressure to align with evolving national security standards.
Spanish telecom giant Telefónica has confirmed it is removing Huawei equipment from its 5G networks in Spain and Germany, aligning with national regulations that restrict the use of Chinese technology in core telecommunications infrastructure. However, the company will continue using Huawei gear in Brazil, where no such restrictions currently exist.
“In both Germany and Spain, we are reducing our exposure to Huawei following the rules we have in these countries,” said Emilio Gayo, Telefónica’s chief operating officer, in comments to Reuters. He added that Telefónica’s presence in the U.K. already has “very, very low” exposure to Huawei due to existing bans.
The move highlights Telefónica’s region-specific approach to network security and regulatory compliance. While Europe has increasingly distanced itself from Chinese telecom vendors, Telefónica continues to rely on Huawei in Latin America — particularly in Brazil, where local laws remain more permissive.
EU pressure and patchwork restrictions
Telefónica’s shift comes amid broader efforts by the European Commission (EC) to limit the presence of so-called “high-risk vendors” in national 5G networks. In 2020, the EC urged member states to exclude vendors like Huawei from core infrastructure due to concerns over cybersecurity and foreign influence.
Several EU countries — including the U.K., Denmark, Sweden, Estonia, Latvia, and Lithuania — have enacted outright bans on Huawei equipment in their 5G rollouts. Notably, the U.K., though no longer part of the EU, initially allowed limited Huawei participation before fully banning the company from its 5G buildout in July 2020, just six months later.
Despite this growing pushback, some contradictions remain. For example, the Spanish government recently awarded Huawei a €12 million ($13.7 million) contract to supply wiretap technology — illustrating the ongoing complexities in aligning security policy with procurement practices.
Telefónica’s selective vendor policy illustrates how global telecom operators must balance geopolitical realities, compliance obligations, and operational needs across vastly different regulatory landscapes.
