Telefónica will keep Huawei equipment in the 5G network of residential users despite promise of 100% European infrastructure

The deployment of 5G networks in Spain has been surrounded by political commitments, international pressures, and a strong narrative about technological sovereignty. Telefónica, under its Movistar brand, promised a network infrastructure made exclusively with European equipment. However, in practice, the reality is more nuanced: residential user data will still circulate through Huawei devices, the Chinese tech giant that in recent years has come under scrutiny from Western governments over security concerns.

A European promise with caveats

After the outbreak of the Ukraine war, the government approved the Security Law for Electronic Communications Networks and Services, which expressly prohibited the use of high-risk equipment in critical segments of the mobile network. In practice, this refers to the core of mobile networks — the central part where user authentication, management of sensitive services, and traffic control occur.

The regulation also included additional restrictions near critical infrastructure, military zones, or sites related to national security. All signs pointed to ZTE and Huawei being the main targets in this category, as had already happened in countries like the United States, United Kingdom, and Germany.

However, the Spanish government never published an official list of prohibited manufacturers. Many analysts interpret this absence as a cautionary gesture towards China, which remains a key trading partner and Spain’s second-largest non-EU economic partner after the U.S.

European partners: Ericsson and Nokia

In this context, Telefónica announced it would replace Huawei in the control plane of the 5G Standalone (5G SA) core network, assigning Ericsson the control layer— a fundamental part responsible for user authentication, roaming management, and service provisioning. This change reinforced the message of shifting towards European suppliers and aimed to dispel doubts about dependence on Chinese technology.

However, the question remained about the user plane, the layer responsible for transporting data from the internet to the customer’s device. This component is crucial not only for security but also for performance.

Huawei remains with residential users

According to reports from El País and later confirmed by the company itself, Telefónica has ultimately decided to keep Huawei in the user plane for residential customers. This decision, internal sources explain, is driven by economic and operational reasons.

Telefónica assures that the data is not controlled by Huawei, as the data travels encrypted and the operator manages the platform directly:

“Huawei provides the platform, but its use is ours, and the data is encrypted by us. Huawei does not manage the data at any point,”

Conversely, for corporate clients and public administrations, the user plane will rely on Nokia equipment — another European provider — ensuring an additional layer of security in environments considered more sensitive.

A delicate balance

Telefónica’s strategy reflects the tension between European technological sovereignty and the economic realities of 5G deployment. Completely replacing Huawei would entail significant cost overruns amid a landscape of heavy investments, tight margins, and increasing competitive pressure.

Huawei remains a leading global provider of telecommunications equipment, with a level of competitiveness in cost and technical capabilities that is tough to match. This advantage has led many European operators to maintain contracts with the Chinese company despite growing restrictions.

National security vs. financial sustainability

The key is how risk is managed. For Telefónica, the division between residential and corporate customers represents an intermediate compromise:

Residential users → Huawei equipment, with the argument that encryption prevents sensitive data leaks.
Corporate clients and government agencies → Nokia equipment, deemed more secure for critical applications.

This move allows Telefónica to comply with regulations by avoiding Huawei in strategic segments while maintaining cost competitiveness in the mass market.

A challenging international context

This decision comes at a time when geopolitical tensions in technology are at their peak. While the U.S. pressures allies to reduce reliance on Huawei, China observes with concern as its companies lose ground in critical infrastructure.

In Europe, the debate continues:

Germany has announced plans to progressively remove Huawei and ZTE equipment from its 5G networks by 2029.
UK established a timeline to remove such equipment by 2027.
France has severely restricted licensing for Huawei devices.

Spain, on the other hand, has adopted a more pragmatic stance, balancing external pressures with economic interests of its operators.

The future of Spanish 5G networks

Movistar’s 5G SA deployment is well advanced. The use of Ericsson’s European control plane and the split user plane—Huawei for residential and Nokia for corporate and government users—creates a hybrid architecture that is likely to influence other operators in similar situations.

It remains to be seen whether the European Commission will push for stricter rules in the future, possibly requiring full replacement of Chinese equipment, as some countries demand. If that happens, Telefónica would face multimillion-euro costs to overhaul its 5G core, potentially impacting prices and investments.

Meanwhile, Movistar’s residential customers will continue browsing, streaming shows, or gaming online through a connection that, at its core, passes through Huawei servers.

Conclusion

The confirmation that residential data will still pass through Huawei broadens the debate about Spain’s and Europe’s digital sovereignty. Telefónica has sought a compromise between security and economic sustainability, trusting Nokia with the most sensitive parts of its infrastructure while maintaining Huawei where the perceived risks are lower.

Time will tell if this mixed approach can satisfy regulators and customers alike, in a world where technology, politics, and security are more intertwined than ever.

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