Key facts
- European mobile operators could get more time to phase out equipment from high-risk suppliers.
- The sector warned that replacement costs could reach €40 billion ($45 billion).
- EU governments removed a specific 36-month deadline from the European Commission's proposal.
- The phase-out period would depend on factors like risk level, lifecycles, and availability of alternatives.
- Huawei denies its equipment poses a security risk.
European mobile operators may be granted more time to remove equipment from suppliers deemed high-risk, according to a proposal by EU governments seen by Reuters. The sector had previously warned that the cost of replacing such equipment could reach €40 billion ($45 billion), potentially hindering investments in crucial technologies like fiber, 5G, and 6G.
The European Commission had initially proposed a 36-month phase-out period for components and equipment from high-risk suppliers as part of its overhaul of the EU Cybersecurity Act. This move was largely aimed at Chinese technology companies like Huawei. However, EU governments have reportedly removed the specific deadline from the proposal, opting instead for a more flexible approach. The revised proposal suggests that the phase-out period should be determined by factors such as the identified level of risk, product and infrastructure lifecycles, equipment replacement cycles, interoperability needs, and the availability of suitable alternatives.
Huawei has consistently denied that its equipment presents a security risk. EU countries are now set to negotiate the Commission's proposal and any amendments with EU lawmakers to finalize the revised Cybersecurity Act. Research from Strand Consult indicated that Germany, Italy, and Spain would face the largest share of equipment replacement over the next five years, with Deutsche Telekom and Vodafone being particularly reliant on Huawei equipment in certain markets.