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Deutsche Telekom (dtegn. De), Europe's largest telecoms company, said on Wednesday that it had temporarily suspended all purchases of 5g network equipment, pending a German debate on whether to ban purchases of Huawei equipment from China for security reasons.
Deutsche Telekom is in trouble after senior members of Chancellor Angela Merkel's ruling coalition protested and called for Huawei to be banned. Huawei is a major supplier of the company's existing mobile networks in Germany and even in Europe.
Meanwhile, in the United States, the $26 billion merger between T-Mobile (tmus. O) of Deutsche Telekom and Sprint (S.N.) has yet to be finalized. More than a dozen states have sued to block the merger, and a New York judge will hear the case on December 9.
Washington imposed an export ban on Huawei in May and called on its allies to keep up, saying Huawei's equipment was unsafe and could be used by Beijing. U.S. President trump highlighted that concern at Wednesday's NATO summit.
Although Huawei denies the U.S. allegations, any sign that Deutsche Telekom has a new business relationship with Huawei could reduce the likelihood that its U.S. deal will pass.
"Given the uncertain political situation, we do not currently have any 5g contracts with any suppliers," Deutsche Telekom said in response to a request for comment from Reuters. "We are currently notifying the supplier of this."
Claudia nemat, a member of Deutsche Telekom's board of directors, recently met with Xu Zhijun, Huawei's vice chairman, to discuss the business relationship between the two companies, according to an industry source who asked for anonymity.

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