HomeFinancial/RegulationEU Huawei ban could cost €40bn, far exceeding original estimate

EU Huawei ban could cost €40bn, far exceeding original estimate

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The European Union’s plan to remove telecom equipment from suppliers “high-risk” including Huawei, could cost significantly more than the bloc’s original estimate, new research has revealed.

According to industry group GSMA, that replacing equipment from so-called high-risk vendors could cost between €30 billion and €40 billion, far above the EU’s projection of €3.4 billion to €4.3 billion per year over three years.

As a result, this amounts to roughly €10 billion to €13 billion overall.


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The GSMA estimated that replacing high-risk vendors in mobile networks alone would cost €16 billion to €22 billion, with additional costs of around €5 billion for fixed networks and €9 billion to €12 billion for transport networks.

Meanwhile, the report also warned that removing established suppliers such as Huawei and ZTE could reduce competition in the telecom equipment market, resulting in weaker competition which could add a further €8.5 billion in costs between 2027 and 2030, as fewer manufacturers could lead to higher prices.

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