August 8, 2023, 11:41 am | Read time: 4 minutes
The debate over Huawei and potential bans on Huawei technology has been ongoing in politics and media for some time. While it has primarily focused on the 5G network expansion, it is now evident that Deutsche Bahn would also be significantly affected by a Huawei ban.
Sometimes things have to get worse before they can get better–at least that seems to be Deutsche Bahn’s motto. Is the rail network dilapidated? No problem, DB is renovating it. Will this renovation lead to massive disruptions and delays in 2024? No problem, DB has been expanding its IP infrastructure since December 2022, and train personnel and control centers remain in constant contact via train radio in crisis situations. Huawei technologies have been installed in both areas, which could soon be banned? Uh… Still no problem, because they can be replaced. For a modest 400 million euros.
Huawei Ban Could Be Costly for Deutsche Bahn
What has DB gotten itself into this time? For several years now, the U.S., the EU, and Germany have been discussing the ban of certain technologies from the Chinese manufacturer Huawei. Huawei not only produces smartphones but is also a major network equipment provider. In Germany, Huawei has supplied key network components for the 5G network. At the same time, there has long been suspicion that China could use such components for espionage and–in extreme cases–sabotage.
No evidence of such allegations has been presented to the public. Nevertheless, the EU strongly warns against granting risky providers access to critical infrastructure. EU Internal Market Commissioner Thierry Breton puts it bluntly: “We cannot afford to maintain critical dependencies that could become a ‘weapon’ against our interests.”
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Politicians Criticize DB’s Plans
Since transportation, along with medical, water, and energy supply, is part of critical infrastructure, DB is also affected by such security warnings. It is all the more perplexing that DB only in December 2022 commissioned Telekom subsidiary Business Solutions to expand its digital infrastructure, fully aware that this company also installs Huawei components. The contract is worth 64 million euros and was awarded at a time when Huawei bans were already being actively discussed in politics.
Accordingly, the criticism from various coalition politicians was severe. “If it is true that the company is increasingly relying on Huawei technology, it raises serious questions,” said Konstantin von Notz (Greens) to the Reuters news agency. Jens Zimmermann (SPD) was even more explicit: “DB has long been completely ignorant of the problem.”
Maximilian Funke-Kaiser (SPD) demands: “There needs to be legal tightening so that no Chinese technology can be operated in Deutsche Bahn’s IT network.” However, the current legal situation does not allow for easy intervention in DB’s operations. This would require legislation with all its bureaucratic implications.
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Full Throttle on Costs, but Full Stop on Expansion
Such a “tightening,” meaning a ban on certain or all Huawei technology, would have catastrophic consequences for DB. This is according to an internal company document obtained by Spiegel. Replacing critical components would cost DB up to 400 million euros. For comparison: with this amount, DB could provide a 49-euro ticket to everyone in Lower Saxony.
However, this would likely be of little use to Lower Saxony, as replacing Huawei components could also set DB back five to six years in its expansion plans. And train radio, the communication between train personnel and control centers, does not currently function without Huawei technology. In northern Germany alone, about 800 train radio base stations would be affected by a replacement.
To be fair, many Huawei components have been in use in DB’s communication network since 2015–long before the ban debates and trade war rhetoric unfolded. A DB spokeswoman said in March 2023 to Reuters that Deutsche Bahn has always followed the recommendations of the authorities. The Federal Office for Information Security (BSI) has not yet classified the systems used as critical components. Moreover, it is the responsibility of Deutsche Telekom Business Solutions to select the components for the expansion. This seems somewhat naive given the long-standing partnership Telekom has with Huawei.