EU telecom ban on Chinese equipment could cost up to €40 billion

The European Union is preparing to remove network gear from Chinese suppliers such as Huawei and ZTE under the revised Cybersecurity Act. An industry report commissioned by seven operator groups and produced by GSMA Intelligence estimates the total cost at €30‑40 billion, roughly three times the European Commission’s original forecast of €10‑13 billion over a three‑year transition.

The breakdown shows €16‑22 billion for mobile base‑station replacements, €9‑12 billion for transport‑network infrastructure, and about €5 billion for fixed broadband equipment. Analysts warn the forced removal will be “one of the most significant structural interventions in the European telecom sector in decades,” and could push equipment prices up by 24‑42% for mobile networks, 19% for fixed broadband and 10% for transport links. The measure also raises competition concerns as the market share of Huawei and ZTE – currently around a quarter of EU mobile‑equipment sales – would be eliminated, strengthening European vendors such as Ericsson and Nokia.