The deployment of 5G networks would have an extra cost of 55,000 million

A report prepared by the GSMA - and published by the Reuters news agency - concludes that a veto from Europe to Huawei and ZTE would increase the cost of 5G networks by 55 million euros, in addition to delaying the implementation of the technology in about 18 months.

The deployment of 5G networks would have an extra cost of 55,000 million
The deployment of 5G networks would have an extra cost of 55,000 million.
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The 55,000 million euros encompass all the possible costs generated by the prohibition. Half of them, according to the report, would be due to the higher price of the components, caused by a loss of competitiveness in the market. The GSMA also notes that "Additionally, operators would have to replace existing infrastructure before implementing 5G."


Europe, in addition to delaying the ignition of the network, according to a report from the GSMA.

If Europe vetoes Huawei, the deployment of 5G networks would have an extra cost of 55,000 million euros Image: David Ortiz.
A report prepared by the GSMA - and published by the Reuters news agency - concludes that a veto from Europe to Huawei and ZTE would increase the cost of 5G networks by 55 million euros, in addition to delaying the implementation of the technology in about 18 months.

The 55,000 million euros encompass all the possible costs generated by the prohibition. Half of them, according to the report, would be due to the higher price of the components, caused by a loss of competitiveness in the market. The GSMA also notes that "Additionally, operators would have to replace existing infrastructure before implementing 5G."


Huawei and ZTE have a combined market share of more than 40%. The 18-month delay caused by its exclusion from the European region "would increase the difference in penetration of 5G between the EU and the United States by more than 15 percentage points in 2025," according to the report prepared by the GSMA.

In an interview with Hipertextual, José María Álvarez-Pallete (CEO of Telefónica) warned about the implications of a widespread veto on Huawei, both in terms of the economy and in terms of deployment. "Huawei is between 2 years and 18 months ahead of Ericsson and Nokia in equipment and 5G standards, so if Europe blocks Huawei, it will lose the possibility of accelerating its deployment," the executive said.

To the warnings of the United States about the possible espionage and the insecurity of the network equipment manufactured by the Chinese companies, we must add the veto applied by the US Department of Commerce. To Huawei, which prohibits companies like Google or Qualcomm from doing business with it. This movement, produced during May, weakens various areas of your business and could make you lose competitiveness concerning rival companies such as Samsung or Apple.

Currently, Google provides high-value services in Europe such as Play Store, Gmail or Google Maps, in addition to licensing many systems such as Google Assistant or Google Play Services -which enrich the experience of using Android phones-. On the other hand, companies such as ARM and Intel license and provide certain components to the Chinese manufacturer, which are essential for the manufacture and production of many of their products. The veto of the US Department of Commerce, therefore, entails the cessation of such businesses and could leave the Chinese corporation in a very weak situation.

Meanwhile, the United States and China are engaged in an economic war that could affect the operation of companies around the world. About this battle, Donald Trump, president of the United States, assured that "if we made a deal, I could imagine that Huawei would possibly be included in some way, as part of a commercial agreement."
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