GSMA report warns EU Huawei ban could cost €40 billion

The cost disparity represents a massive financial risk for operators already managing high-capital fiber rollouts. If the €40 billion projection is accurate, the mandatory 'rip and replace' of Chinese hardware will likely result in higher consumer prices and stalled 5G coverage in smaller markets with tighter margins. For the streaming ecosystem, these infrastructure delays directly hinder the adoption of high-bandwidth services like mobile 8K and cloud gaming that rely on dense 5G connectivity. Watch for the mid-2026 revision of the EU Cybersecurity Act, which could turn these voluntary security guidelines into legally binding mandates with three-year compliance deadlines.

The European Commission has signaled increasing frustration with the slow pace of the voluntary '5G Toolbox' implementation. Per Light Reading in February 2026, roughly 30% of installed equipment in the EU, EEA, and Switzerland still originates from vendors labeled as high-risk. Several countries, including Belgium, Romania, and the Baltic states, have recently joined Sweden and Denmark in enacting formal exclusions, but the continent’s largest economies remain divided. In Germany, which accounts for a significant portion of the region's total infrastructure, Huawei held roughly 59% of the 5G Radio Access Network market as of late 2024, per Strand Consult.

To bridge the security gap without a full immediate ban, some major operators are pursuing technical workarounds. Deutsche Telekom confirmed in its 2024 annual report that it is developing internal software to replace Huawei-branded management systems for configuring antennas and transport networks. This strategy aims to meet security requirements by removing Chinese software from the 'brain' of the network while retaining existing physical hardware to avoid full replacement costs. Despite these efforts, external financing for operators using Chinese gear is shrinking; the European Investment Bank (EIB) has already begun denying funding to carriers that proceed with high-risk vendor purchases, per ECIPE in December 2025.

Further regulatory pressure is building through the proposed revision of the Cybersecurity Act, expected to be formalized in January 2026. According to TelcoTitans, this legislation would authorize the Commission to perform EU-level risk assessments and enforce blacklists, moving beyond the current model of national sovereignty in network security. The Commission argues that high-risk vendors pose long-term threats not just to 5G, but to the nascent 6G infrastructure that will be built on these foundations. This hardening stance is already prompting a shift toward European alternatives, with Nokia regaining market share through major Open RAN contracts in northern Germany as of 2025.