Italian mobile provider Telecom Italia decided to keep Nokia as the main supplier in the planned procurement of equipment for building a 5G network, thereby significantly reducing its dependence on Huawei, sources say. This move may involve pressure to exclude the company entirely for security reasons. 
The United States has lobbied Italy and other European allies to avoid the use of Huawei equipment, arguing that it could pose a security threat - a charge Huawei continues to deny. Italy still refuses to impose a complete ban on Huawei.
In early 2020, Italy's non-existent national communications provider, Telecom Italia (TIM), was considering splitting a radio access network (RAN) contract for its 5G architecture between Huawei and Swedish company Ericsson, the sources said.
The RAN architecture consists of base stations and antennas that serve as the interface between the user's smartphone and the mobile network. It accounts for the bulk of the cost of the new network.
Helsinki-based Nokia, which was previously among TIM's mobile RAN equipment suppliers, previously predicted that it would likely not receive an order for 5G RAN. However, the agreement has since been revised to include supplies from the Finnish giant.
Ericsson is expected to supply TIM with most of the 5G equipment, with Huawei and Nokia receiving up to 25% of each of the shipments, according to a reliable source earlier Wednesday.
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Currently, the companies are still awaiting a final statement as none of them were willing to confirm or deny the allegations. However, there is no public evidence of an initial agreement that Nokia would have refused.
As a direct consequence of the US crackdown on Huawei, telecom operators in Europe have become more cautious about continuing their previous supply contracts and other transactions with the Chinese company. Several sources familiar with the matter said it is clear that Rome has joined the US concern and has taken a more restrained approach to 5G deals, encouraging operators to diversify their 5G providers - a way to reduce Huawei's influence.
The current move follows actions by Telecom Italia earlier this year, which did not consider inviting Huawei to tender for a 5G equipment supply contract for its core network operations.
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