GSMA sees EU telecom supplier replacement costs at €30-40 billion
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The GSMA, a global telecom trade body, projects that replacing high-risk suppliers like Huawei from EU networks will cost €30-40 billion, far exceeding the European Commission's earlier estimate of €10-13 billion. The report warns of an additional €8.5 billion in costs from reduced competition between 2027 and 2030.
Cost Breakdown
The GSMA report estimates €16-22 billion for mobile network replacements, €5 billion for fixed networks, and €9-12 billion for transport networks. These figures contrast with the European Commission's projection of €3.4-4.3 billion annually over three years, totaling €10-13 billion. The trade body argues the Commission underestimated the scope of equipment needing replacement.
Competition Concerns
Beyond direct replacement costs, the GSMA anticipates €8.5 billion in additional expenses from 2027 to 2030 due to reduced competition among equipment vendors. Removing Huawei and other high-risk suppliers will shrink the supplier base, potentially driving up prices for remaining vendors like Ericsson and Nokia.
What's Next
The European Commission is expected to review the GSMA's findings ahead of its next policy update on 5G security. It remains unclear whether member states will adjust their timelines or budgets for supplier removal based on the revised cost estimates.
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GSMA sees EU telecom supplier replacement costs at €30-40 billion
