EU gives operators more time to rip Huawei equipment out of networks

European mobile operators could get more time to remove equipment from high-risk suppliers, under a proposal by EU governments seen by Reuters, after the sector complained that replacement could cost up to €40 billion ($45 billion).

The European Commission had proposed in January that components and equipment from high-risk suppliers be gradually removed from critical sectors, as part of the review of the EU Cybersecurity Act — a measure that mainly affects Huawei and other Chinese technology companies, as Reuters reports. The Commission had suggested a 36-month phase-out period for mobile operators.

But EU governments removed the deadline from the Commission’s proposal, according to a September 22 document seen by Reuters. Instead of a fixed deadline, the phase-out period should depend, among other things, on the identified level of risk, product and infrastructure lifecycles, equipment replacement cycles, interoperability requirements and the availability of suitable alternatives.

Europe has tightened scrutiny of Chinese technology after cyber and ransomware attacks, as well as growing concerns over foreign espionage. Huawei denies its equipment poses a security risk.

EU countries must now negotiate the Commission’s proposal and possible amendments with EU lawmakers, before the revised Cybersecurity Act becomes law.

According to a February study by Strand Consult, most of the equipment to be replaced over the next five years is in Germany, Italy and Spain, with Deutsche Telekom and Vodafone heavily reliant on Huawei equipment in some markets.

In a joint letter earlier this month, Deutsche Telekom CEO Timotheus Höttges and 16 industry colleagues said replacement costs of up to €40 billion risk absorbing the capital needed for investment in fiber optics, 5G and 6G, Reuters reports.