By Patrick Costello

Deutsche Telekom AG (DTE.XE) confirmed Friday that it is reviewing its procurement strategy over security issues with Chinese telecoms-equipment makers.

The Bonn-based telecommunications company launched a review of its network suppliers over concerns surrounding Huawei Technologies Co., Bloomberg reported Thursday.

The review is the first indication Deutsche Telekom might drop the Chinese hardware manufacturer from its list of network-hardware suppliers, Bloomberg said.

Telekom confirmed that a reassessment of its network-vendor strategy is taking place.

"Deutsche Telekom takes the global discussion about the security of network elements from Chinese manufacturers very seriously," a Deutsche Telekom spokesman said.

Telekom already pursues a "multi-vendor strategy" for its network, with its main hardware technology suppliers including Ericsson, Nokia, Cisco and Huawei, the spokesman added.

"Nevertheless we are currently reevaluating our procurement strategy," he said.

Huawei has already been blocked from supplying 5G equipment in countries including the U.S., Australia and New Zealand on grounds that its telecoms equipment could be used to facilitate spying by the Chinese government.

The U.S. has pressured numerous foreign allies, including Germany, to impose similar bans on Huawei.

German officials have previously rejected calls to exclude any vendors from building up the country's 5G networks on security grounds.

Deutsche Telekom--which is nearly one-third owned by the German government--has maintained close ties to Huawei for years however, cooperating with it on projects including 5G trials in Berlin ahead of Germany's upcoming spectrum auctions.

Write to Patrick Costello at Patrick.Costello@dowjones.com.

(END) Dow Jones Newswires

December 14, 2018 06:41 ET (11:41 GMT)