EU’s plan to remove risky telecom suppliers could cost 4 times more than estimated

Coverage from Politico EU indicates that the European Union's initiative to remove high-risk suppliers, such as Huawei, from its telecommunications networks may incur significantly higher costs than initially projected by the European Commission.

A report by the GSMA, a global trade body representing the telecom industry, suggests the direct cost of replacing equipment from designated high-risk vendors could range from €30 billion to €40 billion. This estimate substantially exceeds the European Commission's projection of €3.4 billion to €4.3 billion annually over three years, totaling approximately €10 billion to €13 billion. The GSMA report breaks down the costs, estimating €16 billion to €22 billion for removing high-risk vendors from mobile networks, an additional €5 billion for fixed networks, and €9 billion to €12 billion for transport networks.

Furthermore, the GSMA anticipates an extra €8.5 billion in costs between 2027 and 2030 due to reduced competition among equipment manufacturers, leading to increased prices. However, some experts, like Hosuk Lee-Makiyama of ECIPE, dispute these figures, arguing that the GSMA's estimates are gross and do not account for replacement costs that would have occurred regardless.

Source: Politico EU