Portugal Moves Closer to Banning Chinese Suppliers from 5G

People waiting at the bust stand near the 'MY 5G' advert on a LED screen in Kuala Lumpur, Malaysia, 03 May 2023.  EPA/FAZRY ISMAIL
People waiting at the bust stand near the 'MY 5G' advert on a LED screen in Kuala Lumpur, Malaysia, 03 May 2023. EPA/FAZRY ISMAIL
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Portugal Moves Closer to Banning Chinese Suppliers from 5G

People waiting at the bust stand near the 'MY 5G' advert on a LED screen in Kuala Lumpur, Malaysia, 03 May 2023.  EPA/FAZRY ISMAIL
People waiting at the bust stand near the 'MY 5G' advert on a LED screen in Kuala Lumpur, Malaysia, 03 May 2023. EPA/FAZRY ISMAIL

Portugal's cybersecurity council CSSC has issued a resolution that could formally bar telecom operators from using Chinese equipment in their high-speed 5G mobile networks as well 4G platforms on which the new technology is based.

The CSSC is the prime minister's consultative body and its document, dated May 23, is another blow to efforts by Chinese technology giant Huawei to enter the 5G market in Portugal and possibly extend existing contracts, Reuters reported.

Under a law approved last August, the government can determine "the exclusion, restrictions on use, or the cessation of use of equipment or services" of telecom companies, setting conditions and deadlines for operators to comply.

The government had no immediate comment.

The country's main operators, Altice, NOS and Vodafone have already said they will not use Huawei's equipment in 5G core networks, amid European and US concerns that Chinese involvement in critical infrastructure could compromise security. Beijing and Huawei reject such suggestions.

Portugal's existing 5G networks are not standalone and still largely based on 4G technology and equipment.

Without mentioning China or any Chinese suppliers by name, the CSSC warned of a "high risk" to security from suppliers or providers that "are headquartered in a country where the government exercises control, interference or pressure on its activities in third countries".

Its opinion is based on an undisclosed report that evaluated the safety of equipment in public electronic communications networks involving 5G technology.

It also cited security risks when the country where a supplier is based has no agreements on data protection, cybersecurity or protection of intellectual property with Portugal or the European Union, or when it is not an EU, NATO or OECD member.

Huawei said in a statement it had "no prior knowledge of, and hasn't been consulted about this matter" and it was still gathering information "on the nature of the assessment" and hoped to continue serving Portuguese clients.

Europe has emerged as a battleground in the technology rivalry between Beijing and Washington and Huawei's European competitors, Ericsson and Nokia, could become a supplier duopoly if the Chinese company were shut out.



Sony's Profits Rise on Robust Performance for Music, Movies and Games

FILE - A logo of Sony is seen at the headquarters of Sony Corp. on May 10, 2022, in Tokyo. (AP Photo/Eugene Hoshiko, File)
FILE - A logo of Sony is seen at the headquarters of Sony Corp. on May 10, 2022, in Tokyo. (AP Photo/Eugene Hoshiko, File)
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Sony's Profits Rise on Robust Performance for Music, Movies and Games

FILE - A logo of Sony is seen at the headquarters of Sony Corp. on May 10, 2022, in Tokyo. (AP Photo/Eugene Hoshiko, File)
FILE - A logo of Sony is seen at the headquarters of Sony Corp. on May 10, 2022, in Tokyo. (AP Photo/Eugene Hoshiko, File)

Japanese technology and entertainment company Sony logged an 18% rise in profit for the fiscal year through March on healthy results at its music and video-game operations.

Tokyo-based Sony Corp. said Wednesday that its annual profit totaled 1.14 trillion yen ($7.8 billion), up from 970.6 billion yen in the previous fiscal year, The Associated Press reported.

Annual sales were virtually unchanged, inching down to 12.957 trillion yen ($88 billion) from 13.020 trillion yen.

One area that lagged among Sony’s sprawling businesses was the financial segment, where revenue stalled. But its film division and its imaging and sensor solutions segment did well.

Among the movies that fared positively at the box office for the fiscal year through March were “Venom: The Last Dance,” featuring the Marvel Comics superhero, and “Bad Boys: Ride or Die,” an action comedy, in which Will Smith and Martin Lawrence come back in their popular cop roles, the fourth installment in the series.

Sony, which makes the PlayStation console and game software played on that machine, also marked healthy results in the gaming business.

Its music operations, which also held up, include recordings, streaming services and music for games. The top-selling recorded music projects for the latest fiscal year globally was SZA’s “SOS Deluxe: LANA,” followed by Beyonce, Future & Metro Boomin and Travis Scott.

For the Japan music business, the top-seller was Kenshi Yonezu’s “Lost Corner” album, followed by offerings from Stray Kids and Six Tones.

For the January-March quarter, Sony posted a 197.7 billion yen ($1.3 billion) profit, up 5% from 189 billion yen the same quarter in the previous fiscal year. Sales were 2.6 trillion yen ($17.7 billion), down 24% from 3.48 trillion yen.

Sony is forecasting a nearly 13% drop in profit for the fiscal year through March 2026, to 930 billion yen ($6.3 billion), on 11.7 trillion yen ($80 billion) sales, down 2.9% on-year.

Sony officials are set to brief reporters on the latest company strategy for growth later in the day. Sony stocks lost 3% in Tokyo morning trading.