Bahrain to use Huawei in 5G rollout despite US warnings

Bahrain expects to be one of the first countries to make 5G available nationwide using Huawei equipment. (AFP)
Updated 26 March 2019
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Bahrain to use Huawei in 5G rollout despite US warnings

  • Washington has warned countries against using Chinese technology
  • ‘We have no concern at this stage as long as this technology is meeting our standards’

DUBAI: Bahrain plans to roll out a commercial 5G mobile network by June, partly using Huawei technology despite the United States’ concerns the Chinese telecom giant’s equipment could be used for spying.
Washington has warned countries against using Chinese technology, saying Huawei could be used by Beijing to spy on the West. China and Huawei have strongly rejected the allegations.
VIVA Bahrain, a subsidiary of Saudi Arabian state-controlled telecoms firm STC, last month signed an agreement to use Huawei products in its 5G network, one of several Gulf telecoms companies working with the Chinese company.
“We have no concern at this stage as long as this technology is meeting our standards,” Bahrain’s Telecommunications Minister Kamal bin Ahmed Mohammed told Reuters on Tuesday when asked about US concerns over Huawei technology.
A senior State Department official said the US routinely urges allies and partners to consider the risks posed by vendors subject to extrajudicial or unchecked compulsion by foreign states.
The US Fifth Fleet uses its base in Bahrain, a Western-allied island state off the Saudi coast, to patrol several important shipping lanes, including near Iran.
Bahrain expects to be one of the first countries to make 5G available nationwide, Mohammed said, although he cautioned it would depend on handset and equipment availability.
Early movers like the United States, China, Japan and South Korea are just starting to roll out their 5G networks, but other regions, such as Europe, are still years away and the first 5G phones are only likely to be released in the second half of this year.
Bahrain’s state-controlled operator Batelco is working with Sweden’s Ericsson on its 5G network, while the country’s third telecoms group Zain Bahrain is yet to announce a technology provider.
No foreign company is restricted by the government from providing equipment for Bahrain’s 5G network, Mohammed said, adding mobile operators choose who they work with.
Australia and New Zealand have stopped operators using Huawei equipment in their networks but the European Union is expected to ignore US calls to ban the Chinese company, instead urging countries to share more data to tackle cybersecurity risks related to 5G networks.
Mohammed said the rollout of the 5G network was an “important milestone” for Bahrain, which is hoping investments in technology will help spur its economy, which was hit hard by a recent drop in oil prices.
“It is something we are proud to have,” he said.


Closing Bell: Saudi main index closes in red; Nomu gains

Updated 10 sec ago
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Closing Bell: Saudi main index closes in red; Nomu gains

RIYADH: Saudi Arabia’s Tadawul All Share Index continued its downward trend on Tuesday, as it shed 34.44 points or 0.33 percent to close at 10,290.76. 

The total trading turnover of the benchmark index stood at SR3.57 billion ($950 million), with 80 of the listed stocks advancing and 178 declining. 

The Kingdom’s parallel market Nomu advanced by 0.43 percent or 100.66 points to close at 23,327.60. 

The MSCI Tadawul Index, however, declined by 0.19 percent to 1,368.49. 

The best-performing stock on the main market was Almasane Alkobra Mining Co., as its share price increased by 7.83 percent to SR95. 

The share price of Electrical Industries Co. advanced by 6.17 percent to SR11.18. 

Saudi Arabian Mining Co., known as Maaden, also saw its stock price climb by 5.74 percent to SR64.50. 

Conversely, the share price of Shatirah House Restaurant Co. declined by 8.14 percent to SR8.13. 

On the announcements front, Saudi Telecom Co. said that it plans to issue a dollar-denominated international sukuk under its $5 billion International Trust Certificate Issuance program.

According to a Tadawul statement, the issuance program was set up on Jan. 6, following a board approval obtained on Sept. 30. 

Stc added that the issuance will be conducted through an offshore special purpose vehicle established outside Saudi Arabia, adding that the proceeds will be used for the company’s general corporate purposes. 

The statement further said that the sukuk may be issued in one or more tranches or series by way of an offer to eligible investors in the Kingdom and internationally. 

The telecom giant added that the amount and terms of the offer of the sukuk will be determined based on market conditions. 

The share price of stc edged down by 1.08 percent to SR42.06.