European telecoms could pay up to 40 billion euros to remove Chinese equipment

The complete removal of Chinese telecommunications equipment from European Union networks will impose costs on the industry ranging between 30 and 40 billion euros. According to new calculations by the international organization GSMA, representing the telecom sector, these costs significantly exceed the earlier forecasts of the European Commission.

The European Commission had estimated annual costs between 3.4 and 4.3 billion euros over a three-year period, which would total approximately 10 to 13 billion euros. The difference highlights the scale of the financial challenge facing European operators, who must dismantle and replace already installed Huawei equipment in their 4G and 5G networks.

Cost breakdown and high-risk vendors

GSMA specifies that the costs for removing "high-risk" vendors from mobile networks will reach between 16 and 22 billion euros. Included in this amount are 5 billion euros for fixed networks and between 9 and 12 billion euros for transport networks.

In addition to direct replacement costs, further financial burdens are expected. Between 2027 and 2030, an additional 8.5 billion euros in costs are projected. This is due to the expected decrease in competition among telecommunications equipment manufacturers, which would lead to an increase in market prices.

Geopolitical context

Pressure from Brussels on member states to restrict or completely remove components from Chinese suppliers such as Huawei and ZTE is increasing. The main reason for these measures is concerns regarding the security of the union's critical information infrastructure.