European telecoms execs push back against planned Huawei crackdown

Key executives from major European telecom companies have expressed concerns over the European Union's proposed ban on Chinese telecom equipment providers like Huawei and ZTE. The EU's Digital Networks Act, announced in January, aims to ban suppliers deemed as high-risk on cybersecurity grounds. Once identified, telecom operators would have a three-year window to remove their equipment from networks.

The Connect Europe lobby group, representing telecoms operators, issued an open letter to address the impact of the Cybersecurity Act. The letter, signed by 17 senior executives, including the CEOs of Orange (France), Deutsche Telekom (Germany), and Telefónica (Spain), warned that the ban could cost the industry up to €40 billion in replacement costs. This is a significant blow at a time when operators are already struggling with financial pressures.

The proposed ban is currently being negotiated between the European Parliament and the governments of the EU's 27 member states. This comes after the European Commission's 2023 call for countries to remove Huawei and ZTE from their mobile networks due to security concerns, a recommendation that was not fully implemented in most member states.

The EU's stance on Huawei varies among its member states. Sweden was one of the first to completely exclude Chinese hardware makers from its 5G network, while France opted for a phased approach. Romania and Estonia have also passed legislation effectively barring Chinese vendors. Outside the EU, the UK has gone further by ordering the removal of Huawei equipment from its 5G network. Germany, the EU's largest economy, has taken a more cautious approach, planning to phase out Huawei components by the end of 2026.