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EU Nations Seek Flexible Huawei Phase-Out for Telecoms
29 Sep
Summary
- EU governments proposed extending Huawei equipment phase-out timelines.
- Telecom operators cited up to €40 billion in replacement costs.
- New proposal links phase-out to risk, lifecycles, and alternatives.
European Union governments are proposing to extend the deadline for mobile operators to phase out equipment from high-risk suppliers, a move that could primarily impact Chinese technology firms such as Huawei. The European Commission had initially suggested a 36-month period for this transition as part of its cybersecurity overhaul.
However, the sector warned that the replacement costs could reach €40 billion, potentially draining capital needed for essential investments in 5G and future network developments. Consequently, EU governments have proposed that the phase-out duration should be contingent on various factors, including identified risks, product lifecycles, and the availability of suitable alternatives, rather than a fixed deadline.
This revised approach allows for a more flexible timeline, acknowledging the complex challenges and significant financial implications for network operators. The proposal will now undergo further negotiation between EU countries and lawmakers before becoming law, signaling a potential shift in the regulatory landscape for telecommunications infrastructure in Europe.