Europe is China’s telecom-gear ban would cost the industry $3.5 billion: report

FILE PHOTO: mobile phone Huawei logo is pictured at the IFA consumer tech trade show in Berlin, Germany, on September 5, 2019 at the latest. REUTERS/Hannibal Hanschke/File Photo

TALLINN (Reuters) – the Replacement of Chinese telecoms equipment is likely to cost the European telecom operators approximately $3.5 billion, a report by industry research firm Strand Consult’s predicted on Friday, which is much lower than in the case of a lobby group came up with.

Industry lobby group GSMA with the support of the black list of the Chinese company, Huawei, has predicted a cost of $62 billion.

As the largest telecoms equipment maker, Huawei, has on the AMERICAN black list of Washington, said that the device can be used as a spying tool, which the company denies.

U.S. companies are barred from using some of our equipment, and in Washington, is urging the European countries to follow suit.

The copenhagen-based Strand Consult, said samples of both the United States and Australia show that in the limit of Huawei [HWT.UL] and another China’s ZTE (000063.SERIES of networking is not to increase the price or delay the roll-out of a new 5G mobile networks.

“Mobile operators need to upgrade their equipment in order for technological reasons, regardless of whether or not Huawei-and ZTE is in the market,” said Strand, in the report.

“The restrictions will not lead to price increases in the united states of america or Australia, and are likely to have a negative impact on Europe, Huawei, and ZTE’ s footprint in Europe with only 6% of the total investment,” said Beach.

Huawei’s battle with the Scandinavian companies Ericsson (ERICb.PC) and a Nokia mobile PHONE.There are orders for the next-generation mobile phone networks with the help of 5G technology.

The $62 billion estimate, according to a report published by the telecom lobby group GSMA, which represents the interests of 750 mobile operators. Huawei is one of the most important supporters of the lobby group for the industry, the sources said.

Reporting by Tarmo Virki; editing by Jason Neely and Elaine Hardcastle

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