Parliamentary Committee Notes: Fifth Generation Wireless Networks (5G)
Issue
The Government of Canada has announced its intention to prohibit the use of Huawei and ZTE products and services in Canada's telecommunications system and introduced measures to increase the baseline of cyber security in four federally regulated sectors (finance, energy, transport and telecommunications).
Proposed Response
The Government of Canada is taking important steps to further protect Canada's critical infrastructure systems, including our 5G networks.
The Government takes the security of Canada's telecommunications networks very seriously and will continue to promote the security of Canadian networks, while championing innovative technologies, such as 5G.
The proposed amendments to the Telecommunications Act align with actions taken by Canada's Five Eyes partners and will allow Canada to take strong action against threats to the security of our telecommunications sector.
Once legislative measures come into force, Canada will have a more robust set of tools at its disposal.
Canada fully recognizes the complex nature of the threat posed by a range of malicious actors who seek to use our telecommunications networks as a vector to undermine Canadian and allied safety, security, defence, and economic interests.
If pressed
Legislative measures will provide the Government with a clear and explicit legal authority to prohibit Canadian telecommunications service providers from using products and services from high risk suppliers, where necessary. Once the amendments receive Royal Assent, the Government would be in a position to apply these new order making powers, and intends to consult with industry on any order to give effect to the proposed prohibitions announced in the May 2022 policy statement.
As detailed in the May 2022 policy statement, the Government of Canada has serious concerns about suppliers such as Huawei and ZTE, who could be compelled to comply with extrajudicial directions from foreign governments in ways that would conflict with Canadian laws or would be detrimental to Canadian interests.
Background
5G and Telecommunications Security
Wireless networks are the modern infrastructure on which the global data driven economy is built. The global telecommunications sector is undergoing a transition from 4G to 5G and is looking ahead to next generation networks. 5G networks operate at significantly higher speeds and will provide greater versatility, capability, and complexity than previous generations. As a result, 5G networks are becoming a crucial component of Canada's critical infrastructure. The deployment of 5G networks in Canada's federally regulated telecommunications sector is well underway, and began with the 5G spectrum auction in 2020.
Since Fall 2018, the Government of Canada has worked closely with allies and experts on an examination of emerging 5G technology and the associated economic opportunities and security risks. Particular consideration was afforded to foreign and defence relations, economic, national security, and technical implications.
The examination made clear that while this technology would bring significant benefits and economic opportunities, it would also introduce new security vulnerabilities that malicious actors could exploit and said it was necessary for the Government to evolve its approach to telecommunications security. Incidents resulting from such exploitation could have a broader impact than in previous generations of wireless technology. Further, suppliers such as Huawei and ZTE could be compelled to comply with extrajudicial directions from foreign governments in ways that would conflict with Canadian laws or would be detrimental to Canadian interests. Shifts in international supply chain dynamics also have implications for Canada's ability to conduct assurance testing.
On 19 May 2022, the Government of Canada announced its position on telecommunications security and 5G. The Government stated its intention to prohibit Canadian telecommunications service providers (TSPs) from using new Huawei and ZTE products and managed services in their 5G networks, and require that all existing 5G equipment and managed services be removed by June 28, 2024. In 4G networks, use of new equipment and services would be prohibited, with complete removal of existing equipment and managed services by December 31, 2027. The Government further outlined its expectation that TSPs would cease procurement of new 4G and 5G equipment and associated services by September 1, 2022.
In the May 2022 policy statement, the Government announced that these measures would be implemented as part of a new telecommunications security framework, subject to consultation. To this end, the government tabled Bill C-26, which includes amendments to the Telecommunications Act to ensure that promoting the security of our telecommunications system is a clear objective of Canada's telecommunications policy, and provide the Government with mechanisms to prohibit the use of equipment and services from high risk suppliers, where necessary.
International
Canada's Five Eyes partners have all made public announcements on how they plan to protect 5G wireless telecommunications networks. These policies range in specificity from the naming of specific entities to generic statements of intent to bolster security.
Current Network Security
For Canada, the Cyber Centre assesses that mobile networks have become an increasingly critical part of telecommunications. Canadians' day-to-day lives rely upon connectivity, and 5G provides the underlying infrastructure upon which new applications, services, and other critical sectors depend. Connectivity has become a type of critical resource. Any cyber-attack that affects the confidentiality, integrity, or availability of mobile networks can have significant impact.
From 2013 to 2023, the Cyber Centre's Security Review Program (SRP) helped Canadian Telecommunications Service Providers (TSPs) mitigate supply chain risks from designated equipment and services, such as Huawei and ZTE, in their 3G & 4G mobile networks.
From 2024 onward, given the proposed full restriction of designated equipment from Huawei and ZTE, the SRP will be rebranded the Telecoms Cyber Resilience Program (TCRP). The Cyber Centre's TCRP expands on the SRP mission, to help Canadian Mobile Network Operators (MNOs) mitigate standards-based risks, architecture risks, and supply chain risks, that could impact Canada's 5G mobile networks
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