After the US, Canada bans Huawei, ZTE products from its telecommunications networks
The Canadian government has said that it intends to prohibit its telecommunications service providers from deploying Huawei and ZTE products and services in their 5G networks. The Canadian government also has serious concerns about suppliers such as Huawei and ZTE who could be compelled to comply with extrajudicial directions from foreign governments in ways that would conflict with Canadian laws or would be detrimental to Canadian interests.
“Other forms of equipment from these suppliers have different risk profiles,” according to a Policy Statement released. “However, in the context of this review, the Government of Canada considers that it would be prudent to impose restrictions that build on actions already in place. These are intended to further safeguard the Canadian telecommunications system,” it added.
“Today, the Government of Canada is ensuring the long-term safety of our telecommunications infrastructure. As part of that, the government intends to prohibit the inclusion of Huawei and ZTE products and services in Canada’s telecommunications systems,” François-Philippe Champagne, Minister of Innovation, Science and Industry, said in another statement. “This follows a thorough review by our independent security agencies and in consultation with our closest allies,” he added.
“As a result, telecommunications companies that operate in Canada would no longer be permitted to make use of designated equipment or services provided by Huawei and ZTE,” Champagne said. “As well, companies that already use this equipment installed in their networks would be required to cease its use and remove it. The government intends to implement these measures as part of a broader agenda to promote the security of Canada’s telecommunications networks and in consultation with industry. Our government will always protect the safety and security of Canadians and will take any actions necessary to safeguard our critical telecommunications infrastructure,” he added.
The Government of Canada conducted an extensive examination of 5G wireless technology and the various technical, economic, and national security aspects of 5G implementation, the policy statement said. The examination made clear that while the technology will bring significant benefits and economic opportunities, the technology will also introduce new security concerns that malicious actors could exploit. In 5G systems, sensitive functions will become increasingly decentralized and virtualized, in order to reduce latency, and the number of devices they will connect to will also grow exponentially.
Given the greater interconnectedness and interdependence of 5G networks, a breach or exploitation in the environment would have a more significant impact on the safety and security of Canadians and Canadian critical infrastructure than in previous network generations. In order to reap the economic and social benefits of 5G technology, Canada must continue to secure the foundation of its telecommunications system and adapt to the changing technological and threat environment.
The Canadian government announced its intention that the use of new 5G equipment and managed services from Huawei and ZTE will be prohibited and existing 5G equipment and managed services must be removed or terminated by June 28, 2024. Additionally, any use of new 4G equipment and managed services from Huawei and ZTE will be prohibited and any existing 4G equipment and managed services must be removed or terminated by Dec. 31, 2027.
“The Government expects that telecommunications service providers will cease procurement of new 4G or 5G equipment and associated services by September 1, 2022,” the policy statement said. “The government further intends to impose restrictions on Gigabit Passive Optical Network (GPON) equipment used in fibre-optic networks,” it added.
“During these transition periods, telecommunications service providers that use this equipment and managed services would be required to comply with any assurance requirements prescribed by the government, building from the Communications Security Establishment’s Security Review Program,” the policy statement added.
To date, Canada has already excluded Huawei and ZTE in sensitive areas of Canadian 3G/4G and LTE networks, the statement said. Further, the government has imposed assurance testing in independent third-party laboratories for these suppliers before they are deployed in less sensitive areas of Canadian networks while restricting outsourced managed services from these companies across Canadian critical networks, it added.
The measures will be implemented as part of a new telecommunications security framework, according to the policy statement. “We intend to introduce amendments to the Telecommunications Act to ensure that promoting the security and protection of our telecommunications system is an overriding objective of Canada’s telecommunications policy,” it added.
The statement also said that amendments will include mechanisms to prohibit the use of equipment and services from designated suppliers where necessary to protect Canada’s telecommunications system. “They would also adopt other measures under a holistic telecommunications security framework. This approach is aligned with the approach taken by our allies and partners. The Government intends to consult on the issuance of Orders taken under this legislation including with regard to prohibitions on the use of equipment and services,” it added.
Further, the government will engage with industry throughout the implementation of such measures to ensure they appropriately take into consideration any logistical realities and the need to maintain and promote the resiliency of networks in Canada, the policy statement said.
To complement the proposed legislative actions, the Government will build on the success of the Security Review Program, led by the Communications Security Establishment in partnership with Canadian telecommunications service providers, the policy statement said. “This program will expand to consider risks from all key suppliers and apply more broadly to help industry improve the cyber security and resilience in Canada’s telecommunications networks,” it added.
The U.S. Federal Communications Commission (FCC) had in June 2020 designated Huawei and ZTE as national security threats to protect U.S. communications networks from security risks. The move came as part of a continuing campaign against Chinese firms that make telecommunications gear.
In March this year, Russia’s AO Kaspersky Lab and two Chinese vendors China Telecom (Americas) and China Mobile International were added by the FCC’s Public Safety and Homeland Security Bureau to its list of communications equipment and services that pose a threat to national security. The ban is consistent with requirements in the Secure and Trusted Communications Networks Act of 2019.
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