European telecoms warn Huawei ban could cost up to €64 billion

The GSMA, representing major European operators such as Telefónica, Orange, Vodafone, Deutsche Telekom and Fastweb, released a report estimating that a total ban on Chinese vendors Huawei and ZTE could generate costs of up to €64 billion by 2035. Direct replacement of equipment in 5G mobile, FTTH fibre and transport networks is projected at €30‑40 billion, while an additional €24 billion would arise from higher prices for Western suppliers (Ericsson, Nokia, Cisco) due to reduced competition.

The analysis challenges the European Commission’s earlier estimate of €17‑21.5 billion and is timed as the Commission negotiates the Cybersecurity Act II (CSA2), which would shift from a recommendation against using high‑risk vendors to a full prohibition across mobile, fibre and transport infrastructures. The proposal is expected to be finalised in 2027, and the telecom industry argues that the financial impact has been severely under‑estimated.