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

Severe thunderstorm watch for 100 Mile House

Thunderstorms expected to intensify this afternoon

Category 2 open burning to be allowed in Cariboo

Category 2 open burning will be allowed again throughout the Cariboo Fire… Continue reading

Woman arrested after truck stolen in Mahood Falls

A police report from the 100 Mile House RCMP

Highway 97 closed north of Clinton

The highway has been closed due to downed hydro lines

Did you attend 108 Mile Ranch’s 50th birthday celebrations?

Did you attend the 108 Mile Ranch's 50th birthday celebrations this weekend?… Continue reading

VIDEO: Clip of driver speeding past B.C. school bus alarms MLA

Laurie Throness of Chilliwack-Kent says he will lobby for better safety measures

Vernon Judo coach pleads guilty to child pornography charges

Bryan Jeffrey McLachlan is set to return to court Sept. 4 for sentencing

Olympic skier from B.C. suing Alpine Canada after coach’s sex offences

Bertrand Charest was convicted in 2017 on 37 charges

B.C. senior’s car vandalized for more than 18 months

Retired RCMP officer determined to catch ‘tagger.’

VIDEO: Driver doing laps in busy Vancouver intersections nets charges

Toyota Camry spotted doing laps in intersection, driving towards pedestrians

Former Canucks goalie Roberto Luongo to retire

‘Bobby Lou’ calls it a career after 19 NHL seasons

Man charged in crash that killed B.C. pregnant woman

Frank Tessman charged for 2018 Highway 1 accident where Kelowna elementary school teacher died

Province unveils 10-year plan to boost mental health, addiction recovery services

The plan, called A Pathway to Hope, focuses on early-intervention services that are seeing high demand

Most Read