According to the GSMA Global Mobile Network Association, Chinese companies' ban on the purchase of telecommunications equipment, including Huawei, will increase the cost of deploying 5G networks and slow down the 5G network universalization route throughout Europe.
Reuters According to GSMA, the estimated cost to develop 5G network in Europe according to GSMA will be about 62 billion USD and the delay of developing 5G network will last up to nearly 18 months.
This delay will widen the gap of the 5G network penetration between the EU and the US by 15% before 2025.
The concern of GSMA is not without foundation when Huawei is the world's largest provider of telecommunications equipment. Many major European carriers are also using the company's network equipment. Huawei and ZTE currently account for more than 40% market share of telecommunications equipment supply in the EU.
Losing a partner like Huawei will reduce market competitiveness and be detrimental to operators. Because companies like Samsung, Ericsson or Nokia are not suppliers of large-scale telecommunications equipment, able to meet the needs of many countries. Not to mention if choosing these firms, the cost of installing and deploying 5G network will be very high.
In response to a Nokia spokesman, the company's solution will ensure the installation of a 5G device stack on 4G, thereby reducing the cost and complexity of deploying 5G networks.
GSMA said that the delay in deploying 5G network will have a significant impact on the European economy because 5G technology is necessary for self-driving, medical and logistic applications.
As of June 6, Huawei said it had signed 46 commercial contracts of 5G networks in more than 30 countries and 5G stations shipped more than 100,000 units.
The above forecasts of GSMA are given in the context of the increasing pressure on allies such as Britain, Germany and France to prevent Huawei from participating in building 5G networks in these countries. The United States argues that Huawei may be Beijing's spy and potentially risk eavesdropping of confidential information, intelligence between the US and its allies.
Earlier in a move to dissuade Huawei and China, the United States issued a decree banning Chinese companies from cooperating with Huawei. Soon, a series of software and hardware giants such as Google, Microsoft, Intel, Qualcomm and latest Facebook stopped working with Chinese technology firms.
The US Department of Commerce then extended the ban by three months and it is not clear whether this decree could be removed on the negotiating table.
Refer to Reuters