EU telcos ask: Huawei going to afford to replace Chinese equipment?

Summary

NETWORKS EU telcos ask: Huawei going to afford to replace Chinese equipment? Proposed cybersecurity legislation may force a cull of high-risk network technology, costing tens of billions Replacing telecoms kit supplied by so-called high-risk vendors could cost European telcos up to €40 billion ($45.5 billion), with additional impacts on network performance and future investment plans.This is the warning in a report from GSMA Intelligence, the research arm of the mobile comms industry's global trade body, the GSMA. It refers to plans by the European Commission to address potential threats to EU security posed by IT and telecoms kit from third-country sources.The proposed Cybersecurity Act 2 (CSA2) regulatory framework includes provisions requiring member states to rip out and replace critical equipment supplied by designated high-risk vendors (HRVs) in their telecoms infrastructure, as reported by The Register earlier this year. When the Commission says "high-risk vendors," it means China-based suppliers such as Huawei and ZTE, as identified in a speech by former European Commissioner Thierry Breton several years ago. According to the GSMA, it comes down to the increasing importance of digital infrastructure to economies and life in general, and so the Brussels policymakers are placing a greater emphasis on security and resilience.However, huge uncertainty remains over the cost of replacing HRV equipment - hence the mobile trade body's decision to investigate. There's also the challenge of doing it on a large scale within a tight timeframe: mobile operators would have just three years to remove the targeted equipment, while deadlines for other networks and assets could differ.The GSMA's own figures, based on a survey of seven EU operator groups, produce an estimate of €30 billion to €40 billion. This includes costs for mobile networks, fixed networks, and transport networks, such as optical backbones and subsea cables.Taking a midpoint estimate of €35 billion, mobile...