Huawei and ZTE 5G Ban Could Cost European Operators €55 billion

According to a mobile industry report, the 5G adaptation across Europe could be delayed up to 1.5 years and cost more than €55 billion to European operators as a result of imposing a ban on Huawei and ZTE equipment.

Huawei and ZTE altogether hold 40 percent of the European Telecom equipment market which has recently been frozen by the United States based on national security. It’s been few months US has been taking hard on Chinese companies including Huawei and ZTE, last month the US ordered its firms to stop doing business with Huawei.

Google was also pressurized by the US government to stop doing business with Huawei; Google announced previously that it will stop providing Android and other apps to Huawei phones.

European operators are against the US lead ban on Huawei and raised their voice to oppose the Huawei ban in Europe arguing that banning Huawei would increase prices and decrease innovation in 5G developments.

The new report by GSMA reported by Reuters has now elevated the risks and impact of banning Huawei and ZTE equipment in Europe. EU operators will hit by additional costs of €55 billion due to this ban and it will also delay the implementation of fully functional 5G networks across Europe.

Half of the additional cost would be due to European operations incur higher input costs and significant loss in competition within the mobile equipment market, the reports read. The operators will also have to replace the existing infrastructure before 5G upgrades.

The United Kingdom has been conducting its own assessment over the concerns of national security in the UK, the English country expects to release the report during Spring which has not yet been materialized. It was reported previously that the UK is likely to block Huawei in 5G core parts and put some restrictions in non-core parts.

According to some other leaks, the UK is not banning companies from using Huawei 5G equipment but it still needs confirmation until the final report comes out. According to another report, any ban would seriously damage the UK’s position as a 5G leader also delay the services by 18-24 months, which can cost the UK economy up to £6.8 billion.