Parliamentary Committee Notes: Fifth Generation Wireless Networks (5G)
Bill C-26: An Act Respecting Cybersecurity (Parliamentary Committee Binder)
Date: August 2, 2023
Classification: UNCLASSIFIED
Fully releasable (ATIP)? Yes
Branch/Agency: NCSB/PS
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.
- Canada has been able to successfully mitigate supply chain risk in 3G, 4G, and LTE networks through a collaborative risk mitigation program, CSE's Security Review Program. The program will continue and evolve to mitigate cyber security risks in 5G networks and the telecommunications system more broadly, in collaboration with industry.
- Once legislative measures come into force, Canada will have an even 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.
If asked about timing
- As my colleague Minister Champagne previously stated, this was not a race. This is a complex and multi-faceted issue, and our government took the time needed to undertake a comprehensive and thorough analysis of all aspects before announcing our position on telecommunications security, which balances our economic interests and national security, and is the right approach for Canada.
Fifth Generation Wireless Networks (5G) 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 will operate at significantly higher speeds and will provide greater versatility, capability, and complexity than previous generations. As a result, 5G networks will become a crucial component of Canada's critical infrastructure. The full implementation of 5G in Canada's federally regulated telecommunications sector will take several years 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 will bring significant benefits and economic opportunities, it will also introduce new security vulnerabilities that malicious actors could exploit and that 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 intends 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. 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 with the most recent being the United Kingdom in July 2020. These policies range in specificity from the naming of specific entities to generic statements of intent to bolster security. It is expected that all Five Eyes partners will react positively to Canada's announcement as it is aligned with their own policies.
Current Network Security
In the context of current 3G/4G/LTE networks, a Canadian Security Review Program is in place to mitigate cyber security risks. CSE actively engages with Canadian telecommunications service providers (TSPs) and equipment vendors to help ensure the security of today's existing Canadian telecommunications infrastructure.
The program has been in place since 2013, and has helped mitigate risks stemming from designated equipment and services under consideration for use in Canadian 3G/4G/LTE telecommunications networks, including Huawei. To date, this program has led to:
- excluding designated equipment in sensitive areas of Canadian networks;
- mandatory assurance testing in independent third-party laboratories for designated equipment before use in less sensitive areas of Canadian networks; and,
- restricting outsourced managed services across government networks and other Canadian critical networks.
With the announcement of Canada's position on telecommunications security and 5G, the Government will build on the success of the program, which will be expanded to apply more broadly to improve the cyber security and resilience of Canada's networks, including 5G.
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