Italy has prevented telecoms group Fastweb from signing a deal for Huawei to supply equipment for its 5G core network, three Reuters sources close to the matter have said.
The decision, made at a cabinet meeting late on Thursday, marks the first time Italy has vetoed a supply deal over 5G core networks with Huawei.
Huawei strongly rejects the charges, and its Italian unit said it was ready to undergo any scrutiny to show that its technology was safe.
“The government has vetoed the operation, asking Fastweb to diversify its suppliers,” a senior government source told Reuters. Fastweb had picked Huawei as the sole supplier for its 5G core network, sources said.