Spain Cancels €10 Million Telefónica Contract Over Huawei Equipment

Spain's Digital Transformation Ministry terminated a €10 million fiber contract with Telefónica, citing strategic autonomy concerns tied to Huawei's infrastructure. The scrapped deal WOULD have connected key government entities, including the Defense Ministry.

Telefónica faces mounting pressure as EU nations reduce reliance on high-risk vendors. The company recently pledged to replace Huawei's 5G equipment in Spain and Germany, though it continues using the Chinese firm's technology in commercial networks. Nokia secured Telefónica's 5G Core contract for institutional clients earlier this year.

The MOVE reflects broader European efforts to secure critical infrastructure. Multiple EU states are implementing local rules to limit Huawei's presence amid espionage concerns, while maintaining regional autonomy in telecommunications policy.