EU Governments’ Proposal Could Give Mobile Operators More Time to Replace Huawei Equipment

EU governments want to remove the European Commission’s proposed fixed 36-month deadline for mobile operators to phase out equipment from suppliers designated high-risk. Their draft would allow the timetable to reflect security risks, equipment lifecycles and the availability of alternatives. This is a negotiating proposal, not a change in law: the final requirements and deadlines remain undecided. 1912

What the proposed change means for operators

The Commission’s January proposal set a 36-month phase-out period for mobile network equipment from designated high-risk suppliers. EU governments’ proposed text would drop that fixed period, giving negotiators room to establish a schedule based on the circumstances rather than applying one deadline across the board. 9151

That could give some operators more time to replace affected equipment. But there is no confirmed extension or final timetable yet. The proposed rules do not name Huawei directly; the changes are expected to particularly affect Huawei and other Chinese technology companies if they are designated high-risk. 19

What could determine the phase-out period?

Under the governments’ proposal, the timetable would take account of:

• The level of identified security risk. A higher assessed risk could weigh in favour of a faster phase-out. 12
• Equipment and infrastructure lifecycles. The remaining useful life of installed equipment could affect how quickly it can reasonably be replaced. 12
• Availability of alternatives. The schedule could reflect whether replacement technology is available. 12

The proposal does not establish how these factors would be measured or what final deadlines would apply. Those details remain part of the negotiations. 112

Why security, cost and investment are in tension

The Commission’s proposal would make restrictions on designated high-risk suppliers binding in critical sectors. The Commission has cited concerns including cybersecurity threats, foreign interference and reliance on non-EU technology suppliers. Huawei has criticised the proposed approach. 27

Telecom operators, meanwhile, warn that replacing equipment could cost as much as €40 billion. That is an industry estimate, not an agreed or final cost. Operators argue that a rapid replacement programme could strain investment capacity for other network priorities. 146

This is the central trade-off: a shorter timetable would move faster on the security objective, while a longer or more flexible one could give operators more time to manage equipment replacement and its costs. How negotiators weigh those concerns will shape the final rules. 1612

Which operators and countries could face the most work?

The amount of replacement work would depend in part on which suppliers are designated high-risk and how much of an operator’s network uses their equipment. The available reporting does not establish a reliable ranking of the most affected countries or companies, so naming a definitive list would be premature. 113

What happens next?

The governments’ proposed text must be reconciled with the Commission’s original proposal through the EU legislative process. Until negotiators agree on the final law, mobile operators do not have a settled EU-wide phase-out deadline. The main open questions are how binding the removal requirements will be and how much flexibility operators will receive to meet them. 179