Telefonica SA (TEF) Getting Rid of Huawei Equipment in Europe

Telefónica, S.A. (NYSE:TEF) is one of the best low-priced stocks to buy right now. On July 30, the company confirmed it is replacing all of its 5G equipment made by Chinese manufacturer Huawei within the European Union.

The change will affect the company’s equipment in Spain and Germany as it seeks to comply with local regulations. Telecom companies in the European Union are required to remove Huawei-made devices from core 5G networks due to security risks.

The ban also applies in Britain, whereby Telefonica says it has very low exposure to Huawei equipment on its network. Nevertheless, the company plans to maintain its equipment in Brazil as the rules don’t apply there. Brazil and Latin American nations have yet to ban or restrict the use of Huawei networking equipment.

Telefónica, S.A. (NYSE:TEF) is a multinational telecommunications company that provides a wide range of services. It offers fixed and mobile telephony, broadband, and subscription television, as well as digital solutions such as cloud computing and cybersecurity. It maintains operations in Europe and Latin America, serving individuals and businesses.

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Disclosure: None. This article is originally published at Insider Monkey.