According to reports, the European Commission is exploring regulatory options that would press EU countries to stop deploying telecom infrastructure from Huawei and ZTE and eventually remove existing installations.
The review aligns with a broader shift in Europe’s posture toward securing critical digital infrastructure amid mounting US-China technology rivalry and national-security concerns over network equipment provenance. Analysts note that such a move would have wide-ranging implications for telecom operators and supply chains across the continent.
While no final decision has been announced, sources suggest the Commission is preparing formal proposals — potentially offering funding or transitional measures to aid operators in replacing banned gear. The timeline and cost of such roll-outs remain key uncertainties for market watchers.

Key Highlights
• The European Commission is reported to be considering measures to phase out Huawei and ZTE equipment in EU telecom networks.
• The initiative is driven in part by concerns over cybersecurity and strategic autonomy in critical digital infrastructure.
• Implementation could involve financial support mechanisms and regulatory mandates for member states.
• Telecom operators in Europe and Asia may face operational disruption and higher costs as gear-replacement becomes a larger priority.

Why This Matters
• This step could accelerate the decoupling of global telecom equipment supply chains and heighten regional fragmentation in tech infrastructure.
• For telecom providers, the decision may usher in a new cap-ex cycle focused on replacement and compliance rather than expansion — with implications for profitability and strategy.
• For vendors and suppliers, the shift signals that regulatory risk is now a material factor in technology investment decisions, especially in sectors tied to national security.
• At a geopolitical level, the move underscores how technology policy is increasingly being shaped not just by markets or utilities, but by strategic state interests and alliances.

Source:
Reuters – Full Article