Investigative press reports reveal that Czech think tank’s study on the costs of excluding Huawei from the country’s 5G network was paid for by the Chinese telecom giant
According to Czech news outlet Aktuálnê, Huawei commissioned a widely-circulated report by the Center for Economic and Market Analysis (CETA), a Czech think-tank. The report explained that excluding Huawei from the country’s 5G rollout would dramatically increase costs. The report concluded that “building 5G without Huawei” would cost the country “12 to 38 billion crowns” or $500 million to $1 billion. CETA’s analysis further alleged that construction of 5G networks in the Czech Republic would slow because Huawei’s competitors lack equivalent production capacity, and that this delay would affect the wider Czech economy. The investigation by Aktuálnê revealed that the numbers referenced by CETA originated from an Oxford Economics report that estimated the cost of excluding Huawei from 5G networks in the United Kingdom, Germany, and France. According to Aktuálnê, CETA extrapolated Oxford Economics’ numbers without collecting its own empirical data. The CETA report comes amidst repeated warnings by Czech intelligence agencies about the security risk implicit in relying on Huawei technology within the country’s critical infrastructure. Under PRC law, Huawei is obligated to participate in national intelligence work, has been credibly accused of cooperation with PRC intelligence agencies, and is owned ultimately by a trade union entity likely controlled by the Chinese Communist Party.

About This Incident

Incident Metadata

Date: April 2020
Country: Czech Republic