Two companies in the Nokia group sued the Romanian Gov’t on 5G issue

Two member companies of the Finnish group Nokia have sued the Romanian Government after not obtaining the CSAT authorization to use 5G infrastructure equipment in the country’s communications networks. Nokia is one of the largest manufacturers of 5G equipment and solutions along with Huawei and Ericsson, and the Government has not motivated this refusal.

The two companies rejected by the the Supreme Council of National Defense (CSAT) are Nokia Solutions and Networks OY and Nokia Networks SRL, both part of the Finnish group Nokia, and the process was started on March 25, 2022 at the Bucharest Court of Appeal.

The companies request the annulment of the Government decision no. 167/2022, based on a decision of the Supreme Council of National Defense (CSAT), by which they were practically forbidden to participate with equipment in the construction of future 5G communications networks in Romania.

The CSAT decision issued this year is not motivated, but based on it, Prime Minister Nicolae Ciucă signed on Thursday a decision now published in the Official Gazette, which will prevent the two companies from participating in the future in the construction of 5G networks in Romania.

According to data from the Trade Register, Nokia Networks SRL is 99.1966% controlled by Nokia Solutions and Networks OY, a company based in Espoo, Finland, part of the Nokia group. The remaining 0.8034% is owned by the Romanian company Internet City Doi SA.

In its turn, the company Internet City Doi SA has as shareholders the following legal entities: I.D. Real estate SA (40.88%), SC Diginet SA – 32.24%,  SC Prefabricate Vest SA (25.05%) and Banca Comercială Nova bank SA (1.83%).

Starc4Sys is the first provider to receive the approval of the Supreme Council of National Defense (CSAT) for the use of technologies, equipment and software in information and communication infrastructures of national interest, as well as in 5G networks in Romania, according to a decision signed on Friday , January 7, by Prime Minister Nicolae Ciuca.

This is the first opinion obtained under the 5G law promulgated last year, an act that could exclude the Chinese from Huawei from the country’s telecom networks.

Subsequently, two other companies received CSAT authorization, namely the R.O. and Concept Electronics Security Company. The first company provides security services and alarm systems, including to the Israeli Embassy and Leumi Bank, while Concep Electronics provides IT equipment and has several contracts with STS, SCM and ministries.

The equipment and programs of a 5G manufacturer that does not obtain the CSAT approval can only be used for 5 years in the core of telecom networks, and the rest of the equipment for 7 years. The adoption of this law is one of the conditions for the launch of 5G, through which the state hopes to attract over 500 million euros.