Senior telecom executives in Europe have warned against the European Union's plans to ban equipment from Chinese companies such as Huawei and ZTE from the networks of the Union. They believe this action could increase costs at a time when operators are under pressure.
Digital Networks Law and Its Impacts
According to the Digital Networks Law introduced last January, the European Union intends to ban suppliers classified as "high-risk" for cybersecurity reasons. This law does not directly name Chinese companies, but as soon as a supplier is identified as "high-risk," telecom operators will have three years to remove its equipment from their networks.
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Warnings from the Connect Europe Lobby Group
The Connect Europe lobby group, representing telecom operators, stated in an open letter that the cybersecurity law "poses a risk of draining the industry of the investment needed for fiber, 5G, and 6G infrastructure." This letter has been signed by 17 senior executives, including the CEOs of Orange from France, Deutsche Telekom from Germany, and Telefónica from Spain.
The signatories of this letter estimate that a blanket ban on non-European suppliers could expose the industry to replacement costs of up to 40 billion euros. This proposal is currently under review between the European Parliament and the governments of the 27 member states of the European Union.
The Status of Huawei in Europe
Progress on banning Chinese equipment among EU countries and other European nations has been inconsistent. A few years ago, only 10 out of 27 member countries had removed Chinese companies from their networks following a commission recommendation. Sweden was one of the first leading countries to ban the use of Huawei and ZTE equipment in its 5G network.
While France has taken a gradual approach and is not renewing Huawei equipment usage licenses, the UK has ordered a complete removal of Huawei equipment from its 5G network. Germany is also proceeding slowly and has agreed to remove Huawei and ZTE equipment from its 5G networks by the end of 2026.
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