The Spanish government announced on Friday (August 29) that it is canceling a fiber optic service contract with the Spanish telecommunications company Telefónica, citing the involvement of Huawei equipment.
The Spanish Ministry of Digital Transformation stated in an email to Reuters that the decision was made based on considerations of “digital strategy and strategic independence,” but did not provide further details.
According to El País, the contract, valued at about 10 million euros (approximately 11.7 million dollars), was originally intended for Telefónica to provide fiber optic network connections to multiple government agencies, including the Ministry of Defense.
A spokesperson for Telefónica declined to comment on the matter. However, the company’s Chief Operating Officer, Emilio Gayo, revealed in an interview with Reuters last month that the company is “reducing its reliance on Huawei” to comply with the European Union’s recommendation for telecom operators to gradually phase out Huawei equipment, especially in the core 5G network and infrastructure sectors.
While some European countries (such as Germany) have completely banned the use of Huawei equipment, Spain has not yet implemented a ban and reportedly still retains some Huawei products in its retail 5G mobile network. In July, Telefónica announced the gradual phase-out of Huawei 5G equipment in Spain and Germany but continued to use it in locations such as Brazil.
Spanish media outlet Olive Press, citing government sources, reported that the contract was originally an emergency agreement that has now been “temporarily halted,” with plans to reissue a tender to eliminate old equipment.
According to reports by the South China Morning Post, the contract, valued at 10 million euros, was initially intended for Telefónica to deploy a “fiber super network” (RedIRIS) nationwide in Spain, primarily serving research institutions and government agencies to provide high-speed connectivity. The abrupt cancellation of the contract underscores external concerns about potential “surveillance risks.”
Under Spanish government regulations, foreign collaborations involving public infrastructure, data processing, telecommunications, and utilities are subject to strict security reviews. If deemed to pose potential threats to national security or critical technology, they must receive government approval in advance.
This move indicates Spain’s growing caution in addressing digital infrastructure matters and aligns with the increasing security concerns regarding Chinese technology equipment within the European Union.