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.

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

100 Mile Wranglers register 22nd win of season

The Wranglers beat the North Okanagan Knights 3-1

Where are the worst potholes in 100 Mile House?

Eivind Hestdalen 100 Mile House “The pothole at the lights by Central… Continue reading

Snowmobiling in the South Cariboo

Sometimes it can get lonely on the snowmobile trails. Luckily, there’s a… Continue reading

From the archives of the 100 Mile Free Press

36 YEARS AGO (1984): The co-owner of Starline Cedar Mills Ltd. at… Continue reading

Four South Cariboo figure skaters have training session with Olympian

Four figure skaters from the South Cariboo found themselves taking lessons from… Continue reading

VIDEO: Kawhi Leonard wins first Kobe Bryant All-Star MVP award

Leonard scored 30 points and hit eight 3-pointers to lead Team LeBron to a 157-155 victory

Federal emergency group to meet on pipeline protests as rail blockades continue

There’s mounting political pressure for Trudeau to put an end to the blockades

VIDEO: Minister reports ‘modest progress’ after blockade talks with First Nation

Wet’suwet’en hereditary chiefs say Coastal GasLink does not have authority to go through their lands

B.C. man released from quarantined cruise ship in Japan

Because Spencer Fehrenbacher has American citzensip, he was evacuated by the U.S.

Henrique scores 2 as Ducks soar past Canucks 5-1

Vancouver tumbles out of top spot in Pacific Division

Trudeau cancels Caribbean trip amid pipeline protests across Canada

Protests against Coastal GasLink have disrupted rail service

B.C. VIEWS: Inaction on pipeline protests not a viable response

Columnist Frank Bucholtz on how the Coastal GasLink pipeline dispute got so bad

PHOTOS: Top 10 memories of the 2010 Olympics

Black Press Media’s Jenna Hauck, shares some of her most memorable images of 2010 Winter Games

#FoxForFiver: Support grows in B.C. to put Terry Fox on new $5 bill

Terry Fox’ Marathon of Hope raised money for cancer research

Most Read