Deutsche Telekom freezes 5G deals as Germany debates ban on Huawei

Deutsche Telekom has put all deals to buy 5G network equipment on hold, it said on Wednesday, as it awaits the resolution of a debate in Germany over whether to bar Chinese vendor Huawei on security grounds.

Europe’s largest telco finds itself in a tight spot after senior lawmakers in Chancellor Angela Merkel’s coalition rebelled and called for a ban on Huawei, which is a key vendor for its existing mobile networks in Germany and Europe.

At the same time in the United States, a $26 billion deal for Deutsche Telekom’s T-Mobile unit to merge with Sprint hangs in the balance. More than a dozen U.S. states have sued to block the merger and a New York judge will hear the case on Dec. 9.