Telefónica Deutschland Holding AG selected Finnish company Nokia Corp. and Chinese equipment maker Huawei Technologies Co. Ltd. for its 5G network build-out, amid Germany's pending security guidelines on equipment suppliers, Reuters reported.
The Telefónica SA unit aims to begin infrastructure work in early 2020, and to launch the network in Berlin, Hamburg, Munich, Cologne and Frankfurt by the end of 2021.
Telefónica Deutschland CEO Markus Haas intends for the two 5G equipment suppliers to build its 5G Radio Access network on a 50-50 basis, a plan which would remain subject to approval from German authorities.
Germany will not ban any telecom equipment vendor, including Huawei, in 5G network buildout projects in the country, according to reports citing German government spokesman Steffen Seibert. But the detailed security catalog is yet to be published.
Rival German operator Deutsche Telekom AG earlier halted all deals to buy 5G equipment as it awaits the German government's decision on Huawei. Meanwhile Sunrise Communications Group AG started conducting 5G tests with Huawei.
The U.S. had warned its European allies against allowing the use of Huawei equipment in network development projects. It has accused the Chinese company of being a threat to national security.