The 5TS frequency auction of the Swedish communications regulator, PTS, began on Tuesday and ended that day, the announcement of which stirred up serious dust in the Scandinavian country last October. Exceptionally, when announcing the terms of the auction, it was not the operators who protested, but the Chinese equipment suppliers, which the auction put in an impossible position by stipulating that the winners would not be able to purchase infrastructure items from Chinese suppliers, especially Huawei and ZTE.
The release of the terms of the PTS auction was accompanied in October by a minor diplomatic scandal in which the Chinese leadership sought to state that if the authority did not change its position, it could have serious consequences. Since then, Huawei has tried to use legal means to change the terms of the auction, while its competitor, Ericsson, which has strong interests in China, has also sought to lobby for free supplier selection.
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In vain, Huawei’s lawsuit and appeal were dismissed, and Ercisson’s first man, Börje Ekholm, tried in vain to influence the competent Swedish minister, PTS has sovereign decision-making status under EU rules, so it did not change the original terms of the auction.
Immediately after the conclusion of Tuesday’s proceedings, the Chinese Ministry of Commerce issued a statement in which, wrapped in a diplomatic cloak, it essentially threatened Sweden with a response:
WE INVITE SWEDEN TO CHANGE ITS ATTENTION WITH IMMEDIATE EFFECT, WITH REGARD TO THE ECONOMIC AND TRADE RELATIONS BETWEEN OUR COUNTRIES, AND TO ENCOURAGE TO COOPERATE WITH CHINA
a spokesman for the ministry told the press Global Times according to his report.
If the conflict is not resolved as soon as possible, in the long run, Ericsson will see the most damage, which could completely displace China, where, albeit to a small extent, it may have become a factor alongside local actors in recent years. As the Chinese market offers orders of magnitude greater business opportunities than the Swedish one, there is no question that a possible mutual ban would lead the Swedish manufacturer to pull the shorter one.
Source: HWSW Informatikai Hírmagazin by www.hwsw.hu.
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