Vodafone, the world's second largest mobile operator, said it was "pausing" the deployment of Huawei equipment in its core networks until Western governments resolve concerns about the Chinese firm's activities.
Huawei faces increasing scrutiny over its ties with the Chinese government and has denied allegations that its technology could be used by Beijing for spying.
Vodafone's Chief Executive Nick Read said on Friday after reporting third-quarter results that the debate was playing out at a "too simplistic level", adding that Huawei was an important player in an equipment market dominated by three companies.
"Given that, we have decided to pause further Huawei in our core whilst we engage with the various agencies and governments and Huawei just to finalize the situation, of which I feel Huawei is really open and working hard," he said.
Read said Huawei's equipment was used in Vodafone's core — which he described as the intelligent part of the network - in Spain and some other smaller markets.
A Huawei spokesman said it had been a long-term strategic partner to Vodafone since 2007, adding that Huawei understood Vodafone was only pausing deployment in its core networks in Europe.
"Huawei is focused on supporting Vodafone's 5G network rollouts, of which the core is a small proportion," he said.
"We are grateful to Vodafone for its support of Huawei and we will endeavor to live up to the trust placed in us."