Japanese bank supports German 5G development
A significant loan initiative led by Japan is set to transform Germany’s 5G network, promoting secure and diverse infrastructure while reducing dependence on Chinese technology.
The Japan Bank for International Cooperation (JBIC) has pledged up to €800 million to support the expansion of Germany’s 5G infrastructure, part of an effort to reduce reliance on Chinese technology. The project, which includes contributions from private banks across Europe and Japan, aims to build a secure and advanced telecom system for Germany.
The funding will support United Internet AG, a German telecom company, in adopting Open Radio Access Network (Open RAN) technology. This system allows seamless integration of equipment from multiple suppliers, reducing the risks of over-dependence on a single provider. A significant portion of the software involved is developed by Rakuten Group Inc., a Japanese tech firm.
Germany has relied heavily on Chinese manufacturers for 5G infrastructure, with 59% of its network sourced from Huawei and ZTE in 2022. This new initiative reflects Germany’s ambition to phase out Chinese components by 2029 and strengthen national security. JBIC’s €300 million contribution represents the largest share of the funding, ensuring stability and mitigating risks for the ambitious expansion.
As part of a broader collaboration, financial institutions from France, Britain, and Japan are also participating in the loans. Beyond enhancing Germany’s telecom security, the project is expected to benefit Japanese firms operating in the country by offering a trusted platform for handling sensitive data.