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Europe's 5G To Cost USD 62 Billion More If Chinese Vendors Are Banned

5g News - Published on Tue, 11 Jun 2019

Image Source: reuters.com
Reuters reported that a ban on buying telecoms equipment from Chinese firms would add about EUR 55 billion to the cost of 5G networks in Europe and delay the technology by about 18 months. According to an industry analysis, the estimate is part of a report by telecoms lobby group GSMA, which represents the interests of 750 mobile operators.

The United States added Huawei Technologies, the world's biggest telecoms equipment maker, to a trade blacklist in May, prompting global tech giants to cut ties with the Chinese company and putting pressure on European countries to follow suit.

Washington alleges Huawei's equipment can be used by Beijing for spying, something the company has repeatedly denied.

The move by US President Donald Trump's administration comes as telecoms operators worldwide are gearing up for the arrival of the next generation of mobile technology, or 5G, which promises ultra-fast mobile internet for those able to make the heavy investment needed in networks and equipment.

GSMA has already voiced concerns about the consequences of a full ban on Huawei, whose products are widely purchased and used by operators in Europe.

The EUR 55 billion estimate reflects the total additional costs implied by a full ban on purchases from Huawei and Chinese peer ZTE for the rollout of 5G networks in Europe. The two Chinese vendors have a combined market share in the European Union of more than 40%.

The report said that “Half of this (additional cost) would be due to European operators being impacted by higher input costs following the significant loss of competition in the mobile equipment market.”

It added that “Additionally, operators would need to replace existing infrastructure before implementing 5G upgrades.”

Spokesman Eric Mangan said that “We offer a technical solution whereby we can overlay our 5G equipment on top of another vendor's 4G gear. This solution could reduce the cost and complexity of vendor changes.”

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Posted By : TelecomGuru on Tue, 11 Jun 2019
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