Europe's 5G to cost $62 bln more if Chinese vendors banned: industry group

Credit: Reuters Studio
Published on June 7, 2019 - Duration: 01:57s

Europe's 5G to cost $62 bln more if Chinese vendors banned: industry group

A ban on buying telecoms equipment from Chinese firms would add about 55 billion euros ($62 billion) to the cost of 5G networks in Europe and delay the technology by about 18 months, according to an industry analysis seen by Reuters.

Pascale Davies reports.

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Europe's 5G to cost $62 bln more if Chinese vendors banned: industry group

Europeans may be looking forward to the arrival of 5G but the Huawei saga means they may have to wait even longer and it may come at an even greater price.

According to one industry export, a ban on Chinese vendors would mean 5G networks in Europe could cost $62 billion dollars more.

And the arrival of the next generation of mobile technology, which promises ultra-fast internet, could be delayed by 18 months.

The warning, issued by the telecom lobbying group GSMA, follows President Donald Trump's move to blacklist Huawei in May, over allegations its equipment can be used for spying by China.

Huawei has repeatedly denied those allegations.

But European governments are under pressure to join the ban.

(SOUNDBITE) (English) U.S. AMBASSADOR TO THE NETHERLANDS, PETE HOEKSTRA, SAYING: "The real issue here for Europe is: do you want to give your technology communications infrastructure over to a company and to a country that just does not share the same values that you have in terms of individual privacy, protection of data." The $62 billion dollar estimate takes into account the total additional costs of a full ban on Huawei and its Chinese ally ZTE.

Combined, the companies have a 40% share of the EU's market.

The report also said half of that cost would be down to European operators being impacted by higher input costs due to a significant loss of competition.

And, that the 18 month delay would result from delivery challenges for competitors such as Ericsson, Nokia, and Samsung, in the event of a sudden surge in demand.

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