EU telecoms bosses oppose ban on Chinese equipment suppliers

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Paris, France: European telecom leaders have strongly warned against a proposed EU ban targeting network equipment from Chinese firms such as Huawei and ZTE, cautioning that the disruptive measure will significantly inflate investment costs across the continent.

Under cybersecurity proposals outlined in January within the Digital Networks Act, the bloc aims to restrict suppliers deemed ‘high risk’.

Once identified, telecom operators would face a mandatory three-year window to completely phase out these specific components from their expanding digital infrastructure.

In a joint open letter, the Connect Europe lobby signed by 17 top executives, including the chief executives of Germany's Deutsche Telekom, France's Orange, and Spain's Telefonica argued that the regulatory framework drains critical capital required for rolling out advanced fibre, 5G, and 6G networks. 

They warned that a blanket ban on certain suppliers from outside the bloc would impose up to 40 billion euros ($46 billion) in heavy replacement costs on the sector.

The contentious proposal is currently under active legislative negotiation between the European Parliament and the governments of the EU member states. 

This regulatory push follows an earlier 2023 European Commission recommendation to exclude Huawei and ZTE over security concerns, echoing long-standing U.S. bans.