Ottawa strikes $40M research deal on 5G technology with Huawei rival Nokia

Funding comes in midst of Huawei national security review

The federal government will announce up to $40 million for Finnish telecom giant Nokia on Thursday to conduct research on 5G wireless technology in Canada.

The funding comes as Ottawa is in the middle of a comprehensive national security review of the potential involvement of Nokia’s Chinese rival, Huawei, in Canada’s eventual fifth generation mobile network.

Ottawa is also locked in a diplomatic dispute with Beijing following Canada’s Dec. 1 arrest of Huawei executive Meng Wanzhou at the request of the United States.

READ MORE: China demands US drop Huawei extradition request with Canada

READ MORE: U.S. confirms it will ask Canada to extradite Huawei executive

Huawei, Nokia and Sweden’s Ericsson are among the top contenders to help Canada’s telecom companies, including BCE and Telus, build the country’s 5G mobile networks.

Three of Canada’s partners in the Five Eyes intelligence-sharing group — the United States, Australia and New Zealand — have banned the use of Huawei products in 5G network development based on fears the company could spy on behalf of China.

Federal Innovation Minister Navdeep Bains, who along with Public Safety Minister Ralph Goodale is responsible for overseeing the 5G security review, has said the analysis is not just about Huawei and is designed to assess how best to protect Canadians.

READ MORE: Huawei not only firm that could build Canada’s eventual 5G networks: Goodale

Bains finalized the Nokia deal Thursday in Davos, Switzerland, where he’s participating in the World Economic Forum.

Canada’s ongoing scrutiny of Huawei has created concerns within the Chinese government. Lu Shaye, China’s envoy to Ottawa, warned Canada last week of possible repercussions if the government ultimately decides to bar Huawei from building the country’s 5G networks.

A Chinese foreign-ministry spokeswoman later tried to play down Lu’s remarks, by saying the ambassador didn’t mean that China intended to interfere in Ottawa’s decision-making process. Hua Chunying also told journalists in Beijing on Monday that losses would be inevitable since Huawei is a leading supplier of 5G technology, according to a transcript on the foreign ministry’s website.

Few details are available about Canada’s 5G security review but a well-placed source has said a decision is still months away.

The federal funding will back Nokia’s research work in Canada to help telecom networks meet the needs of 5G technology. The company is also developing cybersecurity tools to protect telecom networks.

The government is expected to sell the deal as a way to support more than 2,000 of Nokia’s jobs already in Canada and to create 237 new positions. Nokia Canada’s projects, valued at over $214 million, are based in Mississauga, Ont., and the Ottawa suburb of Kanata.

The issue of whether Huawei is allowed to build the country’s 5G networks has connections to a diplomatic crisis over Canada’s recent arrest of Meng, the company’s chief financial officer and daughter of its founder.

Canadian police arrested Meng at Vancouver’s airport at the request of American authorities, who are seeking her extradition on fraud allegations.

Her arrest has angered Beijing and the case is at the heart of tensions between Canada and China. The Chinese government says Meng has done nothing wrong and has demanded her release, warning Canada of severe consequences if it doesn’t free her.

After her arrest, China detained two Canadians. Michael Kovrig, a Canadian diplomat on leave, and Michael Spavor, an entrepreneur, were taken in on allegations of engaging in activities that have endangered China’s national security.

In recent weeks, China also sentenced another Canadian, Robert Lloyd Schellenberg, to death in a sudden retrial of his drug-smuggling case. He was originally handed a 15-year jail term in 2016, but the court gave him the death penalty after revisiting his case.

Andy Blatchford, The Canadian Press


Like us on Facebook and follow us on Twitter.

Just Posted

PHOTOS: Jazz at the Lake swings into its 17th year

The annual music festival ran over three days this past weekend

Town of Sylvan Lake looking at lake usage in new survey

The Town is in talks to contract part of the lake, but has to have a plan for water usage first

Over 1,000 barrel racers pouring into Ponoka next week for ABRA Finals

The Alberta Barrel Racing Association Finals will be held at the Calnash Ag Event Centre Aug. 19-25

It’s our lake too, eh?

The Sylvan Lake Watershed Society contributes a weekly column about many aspects of the lake

Disney Plus to launch in Canada in November

Analysts say latest streaming service may escalate cord cutting

Panel to review impacts of safe injection sites in Alberta

It will look at crime rates, social order and property values, and not harm reduction or housing

Five suspects arrested by Leduc RCMP with help of Wetaskiwin and Maskwacis

Leduc RCMP work with Maskwacis and Wetaskiwin RCMP to make arrests

Elections Canada to assess ‘partisan’ climate change rhetoric case by case

People’s Party of Canada Leader Maxime Bernier has said climate change is not an emergency nor caused by human

PHOTOS: 5th Annual Alix rodeo bucks the competition

Cowboys and cowgirls risked it all at the Alix Rodeo

Wetaskiwin RCMP arrest two in Camrose after report of suspicious persons

Fugitives try to flee on ATVS, one allegedly steals police car

Canada ‘disappointed’ terror suspect’s British citizenship revoked

Jack Letts, who was dubbed “Jihadi Jack” by the U.K. media, has been detained in a Kurdish prison for about two years

Most Read