Telecom sector gets more time to phase out high-risk suppliers

Telecom sector gets more time to phase out high-risk suppliers

EU member states want to give telecom companies more leeway in removing equipment from suppliers considered a security risk. A previously proposed three-year deadline may be scrapped. This would make the phase-out less strict than the European Commission had initially envisioned.

Earlier this year, the Commission presented plans to further reduce the use of equipment from high-risk suppliers in critical infrastructure. This approach is part of the revision of the European Cybersecurity Act and primarily affects Huawei and other Chinese suppliers.

For mobile networks, Brussels initially proposed a 36-month transition period. According to Reuters, the member states have now removed that specific timeframe from the draft text.

Assessing replacement on a case-by-case basis

Instead of a single deadline for all operators, member states want to consider the circumstances in which equipment is used. While security risk remains a key criterion, they must also consider the technical lifespan of infrastructure, existing replacement cycles, and interoperability. Additionally, the actual availability of suitable alternatives plays a role.

This approach could give telecom companies significantly more time to replace existing equipment. Especially in countries where Huawei has a large share of mobile networks, a mandatory rapid transition could prove costly and technically complex.

Earlier this year, research by Strand Consult identified Germany, Italy, and Spain as countries where a relatively large amount of equipment would need replacing over the next five years. Deutsche Telekom and Vodafone still rely heavily on Huawei technology in some European markets.

Telecom sector fears bill in the billions

In recent months, the sector has opposed a short mandatory transition period. Deutsche Telekom CEO Timotheus Höttges and sixteen other executives recently warned that replacing equipment could cost the European telecom sector up to 40 billion euros.

According to the companies, that money would then be unavailable for other investments, including fiber optics and the further development of 5G and 6G. Removing the fixed deadline thus addresses a major objection raised by the operators.

The debate over Chinese network equipment has been ongoing for some time. European governments are taking a more critical look at dependence on foreign technology suppliers, partly due to concerns about espionage and the security of critical infrastructure. Huawei maintains that its equipment poses no security risk.

The proposal is not yet final. Member states must agree with the European Parliament on the revised Cybersecurity Act before the new rules can take effect.