Despite concerns about security in Europe, and ZTE's equipment still exists.
In September 2024, Huawei filed a complaint against a Spanish rural 5G contracting project because the tender would put bidders using the hardware of the Shenzhen Telecom giant in China at huge risks. The complaint is another step for the global telecom equipment market leader to withdraw from other telecom network markets involuntarily.
Huawei and another large China-based telecommunications supplier communications are also in a difficult situation. In fact, legal restrictions come from two aspects: these equipment manufacturers are bound by two laws in their own country, which may require them to comply with the Chinese government's security directives if they are implemented; on the other hand, other countries have tougher wording in telecommunications and security regulations, which restrict the use of telecommunications equipment provided by pressured suppliers, although these regulations do not directly mention China.
Private companies in some countries already have bad premonitions. In the summer of 2024, Spanish telecom operator MasOrange announced that it will actively stop using Huawei and ZTE components in its network in the next few years, and instead use products from Stockholm-based Ericsson.
Officials in other places are delaying. In July 2024, German officials met with domestic telecom operators and discussed the speed of replacing Chinese hardware. In order to reduce costs, many local governments only require replacement of equipment when network operators upgrade to 5G or eventually upgrade to 6G. But the plan has sparked criticism from lawmakers who say China controls Germany's critical infrastructure while the German government is still complacent.
"Control of critical infrastructure means shutting down, slowing down or interfering with mobile networks, which will destroy the European economy," said John Strand, CEO and founder of Strand Consult, a telecommunications consulting firm in Copenhagen. Letting telecom infrastructure performance decline over time, or shutting down the infrastructure completely will be a major threat to any economy, and Huawei can control much of the world.
The European Commission said in a cybersecurity assessment in July 2024 that there would be risks in installing too much Chinese-made equipment in the region's telecom infrastructure.
The EU has always believed that it is risky to use the hardware of foreign equipment manufacturers to support critical telecommunications infrastructure such as 5G. But the EU lags behind the United States in terms of legislative actions. According to European News TV, as of August 2024, only 11 of the 27 EU members have clearly stated that they will impose restrictions on Huawei or ZTE through laws.
Some countries are taking less confrontational approaches, like the Spanish rural 5G project, adding some wording to the tender process, putting so-called high-risk suppliers at a disadvantage. Among them, the bidding clause requires the winner to replace equipment from a high-risk supplier, even if it has been installed and designated by the government. This happened in Portugal and Romania, where operators in these two countries chose Huawei's equipment, but the government soon banned the equipment, causing operators to pay huge costs for dismantling and reinstalling.
The cost of taking measures before the ban is issued may be much lower. Strand estimates that the one-time cost of dismantling existing Huawei wireless access network (RAN) base stations in Germany and replacing them is only 29 euros per person. In networks where too many Huawei 5G devices have not been installed yet, the related costs are even lower. In 2019, Strand estimated that the associated costs across Europe could be as low as €6.5 per capita.
>End
This article is reprinted from "Yuezhi.com", with the original title "Europe is struggling to clear China Telecom Equipment".
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