Chinese telecom equipment giant Huawei Technologies Co. was passed over in favor of Swedish networking multinational Ericsson to supply 5G equipment to TELE Greenland A/S, the largest mobile service provider in Greenland.

“TELE Greenland A/S does not see Huawei as a possible supplier of (its) 5G network,” the company said in a statement (link in Danish), citing factors including the “extreme wind and weather conditions” of the country’s operating environment. The statement also did not say which supplier the service provider chose, but a company spokesperson told Reuters that it was Ericsson, which was also the main supplier for the company’s 4G network.

It was the latest setback for U.S.-sanctioned Huawei as it faces tightened scrutiny in Europe amid U.S. allegation that it poses a security threat.

TELE Greenland said it has some Huawei components in its existing network, will continue to assess safety and quality and is in the planning phase of its 5G rollout.

Earlier this week, Norway’s state-owned telecom Telenor ASA said Ericsson and Huawei will play roles in building its next-generation network, though the company has flip-flopped on the level of the Chinese company’s involvement.

Contact reporter Dave Yin (davidyin@caixin.com)

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