Seventeen European telecom CEOs challenge EU plan to phase out high-risk network suppliers

Telecom operators open a cost challenge

Seventeen chief executives from major European telecommunications companies have intervened against the European Union’s proposed restrictions on high-risk network suppliers. Euronews reported on September 15 that the executives submitted an open letter warning that a broad removal requirement could absorb investment otherwise intended for fibre, 5G and 6G infrastructure. Signatories included the leaders of Orange, Deutsche Telekom and Telefónica, placing some of the continent’s largest network operators behind the challenge.

The industry group estimated that replacing equipment supplied by companies outside the EU could cost as much as €40 billion. That figure is the lobby’s assessment, not an official EU forecast, and depends on how suppliers, network assets and transition periods are ultimately defined. The intervention matters because it shifts the dispute from general concern about Chinese technology to the financing and timetable of a potentially binding replacement programme.

What the European Union has proposed

The European Commission proposed a revised Cybersecurity Act in January to create a harmonised framework for reducing non-technical supply-chain risks, including foreign interference. The legislative text provides for identifying high-risk suppliers and would prohibit their components in designated critical communications assets. For key parts of mobile networks, the proposed transition period would not exceed 36 months; deadlines for fixed and satellite networks would be established separately.

The proposed rules do not automatically name Huawei or ZTE. Euronews identified the Chinese companies as the likely focus because both have already faced restrictions or phased removal in several European markets. Sweden and Latvia have enforced firm limits, while France has pursued a gradual licensing approach. Romania and Estonia adopted legislation that effectively excludes Chinese vendors, Britain ordered Huawei equipment removed from 5G, and Germany set staged deadlines extending from 2026 to 2029.

Negotiations will determine the real burden

The plan is not yet law. It remains subject to negotiation among the European Parliament and the EU’s 27 governments. At a June telecommunications meeting, member states supported stronger and more resilient digital infrastructure but asked for greater clarity about the method for identifying high-risk suppliers, the assets covered and the likely effects of the restrictions. Those unresolved details will determine whether the operators’ maximum cost estimate is relevant to the final legislation.

The next points to watch are changes to the supplier-designation process, the scope of protected network components and any adjustment to the three-year mobile-network timetable. Brussels argues that fragmented national restrictions leave security gaps and distort the single market. Operators are now pressing lawmakers to weigh that security objective against the capital needed to expand European connectivity. Until the negotiations conclude and particular suppliers are formally designated, neither a Huawei-wide EU ban nor the claimed €40 billion replacement bill is final.