German telecom operators are distressed with Huawei exclusion

Germany wants to exclude Huawei from its 5G network infrastructure and top telecom operators from the country are distressed by this decision from the German government.

German interior ministry wants to outcast Chinese network operators from the 5G rollout. The country is said to take this step in order to “stop disruption” in services and reduce reliance on Chinese telecom gear.

The proposal mentioned that all of the mentioned telecom service providers must remove all critical components from Chinese companies in their 5G core network by the year 2026. Not only that, but these telecom operators must also eliminate Huawei components from their RAN and transport networks by October 1st, 2026, and lead it below 25%.

Telecom operators criticized this move. Deutsche Telekon reacted to this deadline as “unrealistic” as compared to the UK’s attempt to remove Huawei gear. Another major telecom operator, Telefonica Deutschland said it would require compensation to comply with this move. Telefonica indicated that it may even take the government to court to seek the cost of all removal procedures.

Paolo Pescatore, an analyst at PP Foresight said that the removal of Chinese gear will take significant investment and time. Also, it will delay the 5G rollout and lead to higher service charges.

The interior ministry wants to present its approach to the cabinet next week but could face resistance. A digital ministry spokesperson said no decision had been made yet.

Germany and Huawei:

Currently, Huawei accounts for about 59% of German 5G RAN network gear, reveals a survey by telecoms consultancy Strand Consult. However, Germany wants to curb sales of new 5G networks from any of the designated companies.

Juergen Gruetzner, managing director of the VATM industry association said that transition would require 6-8 years to avoid extra costs.

Huawei also reacted to this news: “Such an approach will have a negative impact on the digital transformation in Germany, inhibit innovation and significantly increase construction and operating costs for network operators,”.

Therefore, the distressed situation in German telecom operators reflects the importance of Huawei equipment gear and their ease of access. However, there’s more to come on this matter.

(source – Reuters)