Huawei’s ban could cost Europe up to $62 billion extra on 5G development

Huawei is a world leader in the telecom equipment market, restricted by the US, that is also forcing its allies to block Huawei in their regions but as you’ve already known some of these countries may have to pay an extras cost of putting restrictions on the Chinese telecom giant if they choose to go with the US.

Sorry Nokia, Huawei is still leading in 5G orders

According to telecoms lobby group GSMA, a ban on buying telecom equipment from Chinese firms would add about 55 billion euros ($62 billion) to the cost of 5G network development in Europe and delay the technology by almost 18 months, reported Reuters.

Back in May, the US added Huawei and its affiliates in an Entity list, which means a ban on Huawei network equipment and other businesses. Following this event, firms including Google, Intel, Qualcomm, Microsoft Xilinx, Broadcom and more have stopped supplying hardware component and software services to the Chinese telecom giant.

GSMA concerned that a full ban on Huawei may bring consequences, whose product are widely purchased and used by operators in Europe. Huawei is also one of the Key supporters of the lobby group, said industry sources.

The 55 billion-euro estimate reflects the total additional costs implied by a full ban on purchases from Huawei and Chinese counterpart ZTE for 5G networks rollout across Europe, as both of these firms combines a total more than 40% European Union.

On June 6, Huawei announced, as of now it has signed 46 5G commercial contracts in 30 countries, and 5G base stations have shipped more than 100,000 units.