By not using Huawei equipment, the introduction of 5g in Europe becomes 55 billion euros more expensive. That is stated in a telecom industry report that is in the hands of Reuters. The group that wrote the report represents 750 telcos.
Not only would the rollout cost 55 billion euros more, but it would also be delayed for another 18 months, according to telecom lobby group GSMA. That number is based on an embargo on both Huawei and ZTE at the same time, which according to the report have 40 percent market share in the EU. Half of those costs would be due to a lack of competition in the telecom market without these two Chinese companies.
Reuters notes that Huawei itself is one of the financiers of the telecom group, according to sources of the site. Nokia also states that it can perform the upgrade from 4g to 5g more efficiently than the GSMA now calculates. The Finnish telecom company could do that by just adding equipment instead of replacing entire parts. Nokia now has more orders for 5g devices than Huawei, it says.
The United States has imposed a trade ban with Huawei in the context of the trade dispute with China. However, Huawei is also regularly accused of espionage on behalf of the Chinese government, causing doubts about the use of its equipment with the introduction of 5g in the coming years. If the equipment does not come from Huawei and ZTE, it must come from companies such as Ericsson, Nokia and Samsung.