France pushes forward with trials of much-hyped mmWave airwaves

Much has been spoken about the promise of mmWave spectrum bands, and France has announced 11 trials to separate the wheat from the chaff in 26 GHz.

Launched by Agnès Pannier-Runacher, France’s Secretary of State to the Minister for the Economy and Finance, and Sébastien Soriano, Chair of the Electronic Communications and Postal Regulatory Authority (Arcep), the trials will sweep the country, covering a handy number of different usecases, while also bringing in an attractive number of different technology companies.

It’s a comprehensive approach few other countries could match-up to. Interestingly enough, several of the projects are being led by enterprise companies, or organizations that do not specialise in telecommunications. To some, it might not sound like the most sensible approach, though it will ensure business demands are priority number one; the problem with telcos is that they specialise in telecommunications and very little else.

The first project will be led by Universcience, at the Cité des Sciences et de l’Industrie, and will focus on public engagement. The La Cité des sciences et de l’industrie 5G trial platform will showcase use cases to the public, through open events, as well as temporary and permanent exhibitions.

Although many in the general public would claim to have heard of 5G, few will actually understand what it is. Education programmes are critical not only to ensure the public is made aware of progress, but also to encourage the next generation into the STEM subjects. For any nation to capitalise on the opportunities presented by the 5G era, the skills gaps will have to be closed.

The second, at the Vélodrome National, will bring together Nokia, Qualcomm, Airbus and France Television to understand how 5G can aid sports media. Low latency and increased bandwidth will be key topics here, as will the integration of artificial intelligence for operational efficiency and augmented reality to improve consumer experience.

The third trial will pair Bordeaux Métropole, the local authority, with Bouygues Telecom and will aim to capitalise on public lighting networks to deploy new infrastructures.

The Port of Le Havre will lead the fourth trial alongside the Le Havre Seine Métropole urban community, Siemens, EDF and Nokia. This initiative will explore 5G applications in a port and industry-related environments, with use-cases such as operating smart grids and recharging electric vehicles.

At the Nokia Paris-Saclay campus, trials will be conducted in a real-world environment, both indoors and outdoors, thanks to Nokia 5G antennae installed at different heights on the rooftops, and in work areas. This project also includes a start-up incubator programme.

The Paris La Défense planning development agency and its partners have submitted another interesting usecase. With 5G CAPEX budget strained already, the Government department will test the feasibility and viability of owning infrastructure and selling turnkey access to operators. This might erode coverage advantages which some telcos might seek, though in assuming ownership (and the cost) of network deployment, the 5G journey might well be a bit smoother in France.

The seventh trial will pair Bouygues Telecom with France’s national rail company, SNCF, at the Lyon Part-Dieu train station. Tests will focus on consumer applications, such as VR and AR, as well as how transportation companies can make best use of data and connectivity to enhance operations. The eighth trial will also be led by Bouygues Telecom, focusing on industrial IOT in the city of Saint-Priest.

Orange will oversee two trials at part of the wider scheme, with the first taking place in Rennes railway station with SNCF and Nokia. Once again, part of this trial will focus on consumer applications, making waiting a ‘more pleasant experience’, with the rest focusing on industrial applications such as remote maintenance using augmented reality.

The second Orange trial will focus on various 5G use cases in heavily trafficked areas, such as enhanced multimedia experiences for people on the move and cloud gaming. This trial is supposed to be generic, and another opportunity for start-ups to pitch and validate their ideas in a live lab.

“The 26GHz spectrum band will allow us to explore new services based on 5G,” said Mari-Noëlle Jégo-Laveissière, Chief Technology and Innovation Officer of Orange. “We are aiming to set-up experimental platforms that will stimulate collaboration on these new use-cases across all economic sectors.”

With the spectrum licenses live from October 7, the trials are now officially up-and-running. Each of the projects must have a live network operational by January 2021 at the latest and have to make it available to third parties to perform their own 5G trials.

This is perhaps one of the most interesting schemes worldwide not only because of the breadth and depth of the usecases being discussed, but the variety of companies which are being brought into the fray. Although the telco industry does constantly discuss the broadening of the ecosystem, realistically the power resides with a small number of very influential vendors.

This is a complaint which does seem to be attracting more headlines at the moment. If you look at the Telecom Infra Project (TIP) being championed by Facebook, the aim is to commoditise the hardware components in the network, while decoupling them from software. Ultimately, the project is driving towards a more open and accessible ecosystem.

France’s initiative here could have the same impact. By designating enterprise companies and local municipalities as leaders in the projects, instead of the same old telcos and vendors, new ideas and new models have the potential to flourish. This looks like a very positive step forward for the French digital economy.

France told to stay in its lane over ‘right to be forgotten’

Google has won a landmark case against French regulator Commission nationale de L’informatique et des libertés (CNIL) over the ‘right to be forgotten’ rules.

After being fined €100,000 for refusing to de-reference certain references in markets outside of the CNIL jurisdiction, Google took the regulator to the Court of Justice of the European Union. And Europe’s top court agreed with the search giant.

“The operator of a search engine is not required to carry out a de-referencing on all versions of its search engine,” the court ruling states.

“It is, however, required to carry out that de-referencing on the versions corresponding to all the Member States and to put in place measures discouraging internet users from gaining access, from one of the Member States, to the links in question which appear on versions of that search engine outside the EU.”

In short, Google must de-reference inside the European Union, while also preventing internet users inside the bloc from accessing de-referenced content which is hosted elsewhere. Preventing those inside the European Union from seeing de-referenced content on versions of the search engine outside of the bloc will be complicated, there is always a workaround if you know what you are doing, however it is a win for Google.

For the CNIL, this is a humbling ruling however. The regulator has effectively been told to stick to its job and not try to force its will upon companies where it has no right to. And we whole-heartedly agree.

The French regulator has no right to impose its own rules on Google when it is operating in other sovereign nation states.

This case dates back to 2015 when the idea of ‘right to be forgotten’ was forced upon Google. In France, and generally across Europe, an individual or company can request Google de-reference search results which are damaging or false. This does not give individuals freedom to remove any reference to them which they don’t like, but it does allow for the removal of false information. These are reasonable rules.

In reaction to the rules, Google geo-fenced internet users in the European Union, but refused to de-reference information on versions of the search engine outside the bloc. This is a reasonable response and course of action.

This is what the French regulator had an issue with, though it has quite rightly been told to stay within its remit. This is a reasonable judgement.

What the French regulator was trying to do was wrong and would have set a damaging precedent. No government or regulator should be allowed to apply its own rules outside its border. The European Union is a tricky situation, as rules can be extended to member states, though there is a hard border at the edge of the bloc.

Thankfully the Court of Justice of the European Union has applied logic to the situation.

France rediscovers the importance of sovereignty in response to Facebook’s cryptocurrency

The French Finance Minister has said he will block Facebook’s plans to launch a global cryptocurrency, citing its threat to monetary sovereignty.

Followers of the Brexit debate in Europe may be surprised to hear France suddenly leaping to the defence of national sovereignty since it’s among the keenest for a federalised European Union, in which nation states are entirely subservient to a trans-continental authority. But it looks like there is at least some residual national pride left among French politicians, it just takes the ambitions of US tech giants to awaken it.

Speaking at an OECD conference on virtual currencies, Bruno Le Maire said “I want to be absolutely clear: in these conditions, we cannot authorise the development of Libra on European soil,” according to AFP. “The monetary sovereignty of countries is at stake from a possible privatisation of money … by a sole actor with more than 2 billion users on the planet.”

Facebook announced its masterplan to revolutionise the global currency system back in June and was immediately met with startled resistance by various governments, including the US, which had assumed currency was their thing. Plenty of other people also expressed alarm at the prospect of a company with many question marks hanging over it suddenly deciding to reinvent money, and it was never likely that a continent that had only recently invented its own currency would tolerate the imposition of another.

It’s hard to see how Facebook will be able to persuade national governments to accept this threat to their currencies, even if they are supranational ones. The fact that France is being especially vocal on the matter is a great illustration of how subjective the matter of sovereignty is. When your opponents want greater independence they’re parochial, isolationist and xenophobic, but when your own interests are threatened, sovereignty becomes a matter of utmost importance.

Iliad confirms Nokia for France and Italy 5G push

In a much needed win for Nokia, the Finnish network vendor will be the central cog to the Iliad 5G deployment strategy across France and Italy.

In recent months, Nokia has at times looked like a bit of a suspect partner to work alongside, though that doesn’t seem to bother Iliad that much. In South Korea during April, unnamed officials said all three operators were told to expect delays in receiving 5G base stations, while Sprint in US it was also suggested delays were down to the Finnish vendor’s tardiness.

CEO Rajeev Suri acknowledged the delays, suggesting they were only ‘short-term’ issues, in April’s earnings call, though the chief also tried to shift the blame onto ‘instabilities’ in consumer chipsets. The fact that these issues were not reported by Nokia’s competitors says more than Suri would like.

However, Iliad is an important win for the vendor.

After partnering with Iliad for both its 3G and 4G networks, Nokia would have been confident in retaining the relationship, though it has been losing out over the last 12-18 months. The telco is currently planning its 5G roadmap, with the first base stations set to go live in 2020.

This is somewhat of an important juncture for the telco, which has been licking its own battle wounds over the last couple of financial periods. Despite taking the French market by storm in the early years, Iliad has been suffering at the hands of competition as rivals stepping their own promotional games, chasing down Iliad during the race to the bottom.

The last financial period looked much more promising, though it still has some work to do to repair the damage. In May, Iliad reported an increase in mobile service revenues in France of 2.3%, however the total number of subscribers decreased by 50,000, down to 13.4 million.

The damage was most notable across 2018. Across the first half, Iliad was beaten at its own game, being undercut by rivals and being forced into announced a reduction in profit forecasts. Q1 in 2018 saw churn of 200,000 mobile subscriptions, the first net decline since the introduction of Iliad in 2012. The broadband business suffered the same fate, resulting in roughly a 40% share price crash across the whole of 2018.

Looking at the most recent numbers, there is a bit more stability and perhaps this is where the greatest enthusiasm for an aggressive 5G rollout will emerge from. In both France and Italy, Iliad has an opportunity to generate momentum through the new connectivity euphoria. This is an era which, once again, looks perfect for aggressive pricing and the first to scale 5G across a nation will reap the profits.

The opportunity for Iliad to get back on track is certainly there, it just needs the right partner to help facilitate the rollout and get the company back on track in the 5G world. Iliad executives will be hoping Nokia’s troubles are in the rear-view mirror.

Macron softens digital tax stance after Trump lunch

The US has proved it can still throw its weight around the international community as French President Emmanuel Macron has taken a softer-stance on the country’s Digital Sales Tax.

Following lunch with President Donald Trump, Macron has stepped-down the aggressive moves against Silicon Valley and the creative accounting practices which has deprived countries around the world of valuable tax revenues. France took the brave step-forward to tackle the suspect status-quo, though it seems the threat of US tariffs was enough to ease the position of Macron.

“We’ve done a lot a work on the bilateral basis, we have a deal to overcome the difficulties between us,” Macron said to reporters following his meeting with Trump at the G7 Summit this weekend.

A lot has been said this weekend, though most of it avoided the technology, media and telco industry. This is perhaps the biggest news to emerge for our niche, though it does demonstrate the US still has some national leaders under the strain.

The 3% digital sales tax on companies which report more than €750 million worldwide, and also €25 million in revenue in France, will still be applied, though US companies could be entitled to a deduction when the OECD releases its own rules.

Following the G20 Summit in March, the OECD kicked-off a public consultation to address the tackle challenges in an increasingly digitally-defined society. After renewing the mandate of the Task Force on the Digital Economy (TFDE), the OECD has promised a draft proposal of the rules in 2020.

Should there be a difference in the definition of taxable monies or the amount which is due to France, the internet players will be granted to opportunity to deduct from the amount paid to the French Government. France’s 3% sales tax is to be applied from January 1 2019, though the question which remains is when the OECD will actually be able to propose a tax regime which all states can get on-board with.

This is the challenge which the OECD will face. There will not only be lobbyists in place from the internet giants, but also from the nation states which have an interest in maintaining the status quo. Ireland, for example, has benefitted from undercutting other countries, and without a surge of interest from the technology industry, who knows what state its economy would be in today.

One does have to wonder what Trump to Macron over Le Big Mac this weekend.

Alongside the UK, France was the first to take a tough stance against the creative accounting strategies of the internet giants. Few in Silicon Valley would have been happy with developments, as it would have held them accountable to fair and reasonable tax payments. The vast majority have been managing to avoid paying back the societies which have fuelled such extravagant bonus cheques for years.

Silicon Valley has been promising to help the development of society for years, though apparently this only counts when the revenues are directed towards its own bank accounts. When it comes to helping to build hospitals, buy school books, care for the elderly, fund fire departments and fill in pot-holes on roads, it has little interest.

Prior to the discussions over lunch, Trump had promised to hit back against France.

“France just put a digital tax on our great American technology companies. If anybody taxes them, it should be their home Country, the USA,” Trump tweeted in July. “We will announce a substantial reciprocal action on Macron’s foolishness shortly. I’ve always said American wine is better than French wine.”

Firstly, each country around the world should be entitled to tax companies when they reap financial benefits from its citizens; this is fair and reasonable, but Silicon Valley was better than most traditional industries of hiding profits from the tax man. Secondly, this tweet gave us some insight into the retaliation from the White House.

Following the tweet, the United States Trade Representative (USTR) opened an investigation under Section 301 of the Trade Act of 1974. This is the same first-step of the strategy which kicked-off tariffs against the Chinese and the subsequent trade-war. Wine, cheese and striped t-shirts were presumably being eyed-up, and it seems this was too much for Macron.

Although the digital taxation remains in place, this is a softened stance from the French President. The White House will certainly be happy with this outcome, although not completely satisfied, as it proves it can still act as a bully in international politics, throwing its monstrous weight around.

However, it is not as satisfactory an outcome as many in Silicon Valley would have wanted; they will still have to pay tax in France.

“Unfortunately, the enactment of France’s Digital Services Tax threatens to undermine the OECD process,” Google said in a statement to the USTR during the early stages of its investigation. “It is a sharp departure from long-established tax rules and uniquely targets a subset of businesses.”

The current tax rules are dated and allow the internet players to abuse the grey areas which are present in the law, or language which does not account for digital services. Of course, these companies are not happy, they will have to pay more tax.

As mentioned above, the companies will still have to pay the French tax. If Macron has been persuaded to drop the tax completely, there would have been plenty of time to bank an extra couple of hundred million and delay the implementation of the OECD rules. It would have been additional grace period.

What remains to be seen is what impact this will have on the approach to digital tax across the rest of the bloc. France was leading the charge, and this might well dent the confidence of other nations to follow suit, especially smaller ones which might be more susceptible to threats from the White House.

The tax is still going ahead, though Trump has proved he can still flex and make the French flinch.

French parliament passes “Huawei Law” to govern 5G security

Both houses of the French parliament have voted in favour of the new law, dubbed the “Huawei Law”, to give the government the power to security vet 5G rollouts in the country.

The legislation process started when France, being pressured by the US to exclude Huawei from the country’s 5G networks, decided to keep the decision-making power in its own hands, hence the nickname. An earlier draft of the legislation was met with protests from the parliament as being too “open-ended” which would give the government too much power.

The final stage of the legislation process started three weeks ago, when a joint group of 14 parliamentarians (la commission mixte paritaire, or CMP) from the Senate and the National Assembly started putting the final touches to the draft. According to the announcement from the Senate when the final stage started, Senator Catherine Procaccia stressed that the Senate’s amendments have excluded the ongoing 4G rollout from the upcoming law, and demanded the authorisation process be simplified from two-stage to one-stage. Sophie Primas, the chairperson of the economic affairs committee, also believed that the amended version was more balanced than the initial proposal.

The AFP reported that, after an ultimate vote on the Senate floor, the parliament has given its final approval to the comprised text, which it is now ready for President Macron to sign into law. When it becomes effective, the Prime Minister will have the power to approve or reject the telecom operators’ plans to roll out 5G networks, considering the implications on national security. The PM’s decision needs to be made within two months of the application.

Agnès Pannier-Runacher, Secretary of State for Economy and Finance, told the AFP that the new law will establish a stable, simple, and protective legal framework without delaying France’s deployment of 5G, and the government is already in the process of finalising the implementation details. She also stressed that there will not be a city 5G and a rural 5G in France. Each operator should have 12,000 sites equipped with 5G by 2025, a quarter of which should be in the rural areas, she told the news agency.

This piece of legislation is made at a time when the European Union is developing a pan-EU framework to assess 5G risks. Although it is one of the two most powerful driving forces in the EU (the other being Germany), France has a tradition of going its own way without waiting for the EU legislations to catch up. A recent example is the decision to go ahead with the 3% sales tax on the internet heavyweights without waiting for a European-wide single digital market regulation.

France next on the list to be teased with Trump’s tariffs

The United States Trade Representative (USTR) has opened an investigation into France’s digital sales tax, a move which could lead to the European nation facing trade tariffs.

The digital sales tax in France has been viewed as a means to force internet companies to play fair. The creative accounting practices of these companies has ensured nominal tax has been paid to various European states, and France has had enough. The proposed tax has passed through the lower parliamentary house, the National Assembly, and is expected to get the final thumbs-up today from the Senate.

As a result, US Trade Representative Robert Lighthizer has announced the launch of an investigation under Section 301 of the Trade Act of 1974 of the Digital Services Tax (DST) into the French government. This is the very same tool used by the Trump administration to justify the introduction of tariffs against China due to the alleged theft of IP.

“The United States is very concerned that the digital services tax which is expected to pass the French Senate tomorrow unfairly targets American companies,” said Lighthizer.

“The President has directed that we investigate the effects of this legislation and determine whether it is discriminatory or unreasonable and burdens or restricts United States commerce.”

What is worth noting is that while many US companies might find themselves paying more tax, this is not necessarily a move to raid the US economy. This tax has been directed towards all digital companies who abuse the international tax system to the detriment of the French government and society irrelevant as to their nationality, it just so happens the US dominates the internet industry.

Many will view the French move as a gallant effort to hold the internet economy accountable, though it seems the US does not feel the same way; its own economy and society does of course benefit from the tax skulduggery.

The suggestion of the US imposing tariffs on the US comes two days after President Trump declared Indian tariffs on US goods should be a thing of the past.

The tax itself has been in the pipeline for some time, as European nations have become increasingly frustrated by the taxation strategies of the digital economy. Companies such as Google, Facebook and Amazon have been shifting profits freely throughout the world to ensure lower taxation rates are paid. This move from France, to impose a 3% sales tax on revenues realised within its borders, seems like an effective counter-punch.

What is worth noting is it is not just the US firms who are abusing this taxation system. Sweden’s Spotify is another which has played the system well. In the UK, as an example, the company reported revenues of £444 million over the course of 2017 but paid £891,425 in tax as it only reported advertising revenues in the country. Revenues associated with the ‘Premium’ subscription product were moved to Sweden where it could pay less tax.

France is not alone with its frustrations either. The UK is another nation which is considering its own digital tax reforms, while the European Commission attempted to pass bloc-wide rules recently. These rules were blocked by the likes of Ireland and Luxembourg, two countries who benefit significantly from the fleecing of other nations.

Now onto the US response. Section 301 and related provisions of the Trade Act offer the USTR the opportunity to investigate what it or the White House deem as a foreign country’s unfair trade practices. There will be a public consultation and lobby efforts from Silicon Valley and should the USTR conclude France is unfairly persecuting US business, tariffs could be directed towards imported cheese and garlic.

Tariffs are a popular weapon for Trump and the White House hacketmen on the international trade scene, as it is becoming increasingly common for US diplomats to huff and puff, while banging their chest and showing off their biceps when things don’t go their way.

Unfortunately, the US doesn’t really have a leg to stand on here, though the presence of logic will not persuade the hawks from their flightpath. Internet companies, all over the world for that matter, are taking advantage of a dated taxation system which allows them to grow bank accounts without recontributing to the country which has fuelled this prosperity. There is little which can be said to counter this position.

Interestingly enough, the move could spark wider tensions. The relationship between the White House and the European Union is already stressed and targeting a single member state might not be received well by the bloc. The US feels targeting a single member state is legitimate, though there might well be a bigger conversation to be had in Brussels.

With the clouds of tariffs already lurking above the European automotive industry, the US might find itself with another trade disagreement on its hands before too long.

Orange CEO cleared of fraud

The interminable Tapie saga, which threatened to topple Orange CEO Stéphane Richard, has finally concluded with everyone acquitted of wrongdoing.

Richard (pictured) was accused of complicity in a fraud that involved the French state handing over €404 million to French businessman Bernard Tapie back in 2008. At that time Richard was Chief of Staff for Finance Minister Christine Lagarde, who was eventually found guilty of negligence in creating the circumstances for the payout and then not challenging it.

Part of Lagarde’s defence when she was put on trial back in 2016 was that she didn’t really know what she was doing because Richard didn’t furnish her with sufficient information. This led to the current trial, which investigated the role Richard and a few others played in the whole affair.

The reason for the payout was a claim from Tapie that he got ripped off when he sold his stake sportsware company Adidas to Credit Lyonnais, which is partly state-owned, in order to avoid a conflict of interest when he became a government minister back in 1992. The bank subsequently sold on the stake at a profit, leading Tapie to allege that it had deliberately undervalued it previously.

Tapie sued Credit Lyonnais and eventually Lagarde pushed the case to a closed arbitration panel which made the €404 million award. Not only was the matter deemed to be badly handled by Lagarde and her team, but the award was eventually reversed amid suspicions of fraud. This case seems to reverse that decision once more, so it looks like Tapie will get to keep the cash after all.

This is obviously good news for Orange, which had no involvement in any of it but has had Richard at the helm for eight years, during which he seems to have done a decent job. The whole thing still stinks of an establishment stitch-up, however, with French taxpayers handing over an enormous amount of cash to a rich former politician to compensate him for a botched business deal.  Richard will obviously be relieved too, but s Lagarde’s recent appointment to head the ECB indicates, he may have escaped any negative consequences even if he had been found guilty.

Orange gears up for the Tour de France but no mention of 5G

This weekend will see the Tour de France begin in Belgium and while it might be a chance for some to enjoy a tipple in the sun, for Orange it is a monstrous task. But it does seem to have forgotten to plug 5G.

Delivering a connectivity solution for this spectacle is somewhat of a difficult task. The race covers 3,460km over 21 stages, starting in Brussels, winding through 219 municipalities in France before ending in Paris. Four stages will be held in the Pyrenees and another four in the Alps, while numerous see the race snake through rural France. These are not necessarily the easiest environments to provide connectivity in.

The other factor you have to take into account is this is not necessarily a ‘build once’ concept for network infrastructure; the tour route changes every year, making permanent infrastructure redundant in numerous areas. That said, it does provide the commercial drive to bridge the digital divide in some rural environments.

In some places, it makes just as much commercial sense to rollout permanent infrastructure to the small towns as it does to make it temporary in the more secluded areas. This year, 11 locations will benefit from a permanent fibre installation, while 37 municipalities visited by the Tour and 182 municipalities located within 10km of race will also benefit from 4G upgrades.

This is not to say Orange should wait for the Tour de France to pass through a village to address the digital divide, but it is a nice by-product for some communities.

One massive omission from any of the materials is 5G. With 5G buzzing in almost every corner of the connectivity world, it would be a fair assumption it would be here as well. In other sponsorship properties Orange owns, Roland Garros for example, 5G has been the focal point of communications, but it has been missed out here.

Admittedly, this is a different and more complicated environment to deliver the super-fast ‘G’, but it does seem to an oversight; there are various different usecases which could be plugged by the telco here. This is not to say Orange should wait for the Tour de France to pass through a village to address the digital divide, but it is a nice by-product for some communities.

In 2017, we had a behind-the-scenes tour of the event, with Orange offering some insight into the efforts made to deliver connectivity. And its not as easy as it sounds. Alongside the Orange technical team which has to move with every stage of the tour, the telco has to provide connectivity for roughly 120 trucks housing various broadcasters, shifting 20km of fibre and 65km of power cables each day.

The figures quoted above were accurate two years ago, now you have to take into account consumers are more digitally defined, using a broader range of apps and digesting more data on a daily basis. Here’s a bit of a taste of the complications Orange faces this year:

  • 7,000 hours broadcast by 190 countries worldwide
  • 10 to 12 million spectators on the roadside
  • 8 million unique visitors to the website
  • 32 km of cables deployed at the finish line during the event
  • 350 temporary phone lines
  • 32 mobile 3G/4G mobile relays to strengthen mobile network coverage
  • 250 km of specifically deployed optical cables

In the ‘village’ at each stage of the Tour, Orange has said it will deploy eight separate wifi networks, with an equivalent rate of 200 Mbps and able to handle more than 10,000 simultaneous connections. This is the easy part, the village doesn’t move all day, but providing continuous connectivity while the race is progressing is a different challenge.

This is a marketing opportunity for Orange, it gets to show how wonderful it is at solving complicated problems, but there is certainly an upside for some in the rural communities who could see a connectivity boost. Assuming the race passes through your quaint village of course.

US influence on Europe failing as France resists Huawei ban

The White House might have felt banning Huawei was an appropriate measure for national security, but France does not agree with the drastic action.

Speaking at a conference in Paris, French President Emmanuel Macron has confirmed the country will not ban Huawei. This is not to say it won’t in the future, but it appears Europe is remaining resolute against the demands of the US. The burden of proof might be a concept easily ignored in the US, but Europe stands for more.

“Our perspective is not to block Huawei or any company,” Macron said. “France and Europe are pragmatic and realistic. We do believe in cooperation and multilateralism. At the same time, we are extremely careful about access to good technology and to preserve our national security and all the safety rules.”

President Donald Trump is most likely a man who is used to getting his own way, and upon assuming office as head of the most powerful government worldwide, he might have thought this position of privilege would continue. However, Europe is being anything but compliant.

In direct contradiction to the Executive Order banning Huawei from supplying any components, products and services to US communications networks, Macron has declared France open is for business. France won’t use the excuse of national security to beat back the progress of China but will presumably introduce mechanisms to mitigate risk.

Germany has taken this approach, increasing the barrier to entry for all companies, not just Huawei. Vendors will have to pass more stringent security tests before any components or products can be introduced to networks, though Chancellor Angela Merkel has also made it clear she intents to steer clear of political ties to the decision.

“There are two things I don’t believe in,” Merkel said in March. “First, to discuss these very sensitive security questions publicly, and second, to exclude a company simply because it’s from a certain country.”

The UK is seemingly heading down a similar route. Alongside the Huawei Cyber Security Evaluation Centre (HCSEC), run by GCHQ with the objective of ensuring security and privacy credentials are maintained, the long-awaited supply chain review is reportedly going to place higher scrutiny but stop short of any sort of ban. The official position will be revealed in a few weeks, but this position would be consistent with the UK political rhetoric.

Over in Eastern Europe, governments also appear to be resisting calls to ban the company, while Italy seems to be taking the risk mitigation approach. Even at the highest bureaucratic level, the European Commission has asked member states to conduct an assessment for security assessments. Unless some drastic opinions come back in October, we suspect the official position of the European Union will be to create higher security mechanisms which offer competitive opportunity for all vendors in the market.

For the moment at least, it appears the Europeans are immune to the huffing and puffing making its way across the Atlantic. That said, the trade war with China is set to escalate once again and it would be fair to assume more US delegations will be attempting to whisper in the ears of influential Europeans. At some point, the US will get tougher on Europe, but it does appear those pesky Europeans are stubborn enough to resist White House propaganda and pressure.