Thread by @thorstenbenner

Latest twist in Germany's neverending 5G saga: Handelsblatt reports government agreed on draft law that "does not formally ban Huawei from #5G but strongly restricts Huawei components, not just in core but also access network".
Details to follow. Bundestag to discuss draft law.

Handelsblatt reports that Huawei will not be formally excluded but will face high hurdles which amount to "quasi exclusion" in words of one observer. So what is reportedly in draft IT security law? Critical components from both 5G core & RAN face dual-track approval process.

First track is technical certification by @BSI_Bund (head is big Huawei fan, so that will likely not be a hurdle for high-risk vendors).
Second track will check on trustworthiness of suppliers. Here suppliers (e.g. Huawei) will provide "declaration of trustworthiness".

Credibility of this declaration will then be assessed by ministries (Foreign Office, Interior, Economy, perhaps Chancellory). Handelsblatt says little on details but those will be be key. Good that "overall political situation" in which provider operates will be key criterion.

That political trustworthiness is now key criterion is a big victory for those seeking to exclude high-risk providers from 5G critical infrastructure (majority in Bundestag) and loss for Merkel. Parliament will need to make sure this trustworthiness review process has teeth.

It's good that draft law says that what counts as 5G critical components will be adjusted over time depending on technological developments. It is right now not restricted to core and will include more & more of access network over time.

ESMT's Martin Schallbruch expects that complex approval process for technology including political criteria will incentivize operators not to rely on Huawei because that would be risky & approval very uncertain as compared to Nokia or Ericsson where trustworthiness not an issue.

I'm not so sure. All major operators have already decided to exclude Huawei from core. But in current 5G rollout Telekom, Telefonica and Vodafone already strongly rely on Huawei for access network. Unclear whether they face enough incentives to change course already now.

So it's now for Bundestag to shape draft law in a way that sends extremely clear signal to operators to no longer rely on Huawei for 5G roll-out. Just injecting uncertainty is not enough. The more certainty operators have, the better. Process has already taken way too long.

Compared to Merkel's favored BSI/BNetza regulation that would have opened doors to Huawei this is already a big step forward. And big win for all parliamentarians as well as politicians & officials in ministries who have fought to make trustworthiness of suppliers key criterion.

Here is the full @handelsblatt piece on German 5G draft IT security law by @MoritzKoch78 & @till_hoppe
handelsblatt.com/politik/intern…

Story reports a cute detail: in final meeting during inter-ministerial coordination deciding on 5G wording in draft IT security law @BMWi_Bund was not invited by @BMI_Bund & @AuswaertigesAmt "because of an office oversight". Accidents happen.