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GSMA says Huawei ban could lead to delays in EU’s 5G deployment

Earlier last month, the United States issued a blacklisting which was advocated by the United States President, Donald Trump. The ban restricted the Chinese mobile firm Huawei from using Google as its operating system.

Following this ongoing saga, IOL News is reporting that a preliminary report drafted by GSMA trade association could see European phone companies incur $62 billion in additional costs in relation to delayed 5G network deployment.

“The need to replace network equipment and the capacity constraints on the remaining mobile equipment vendors would disrupt current rollout plans, such a delay would widen the gap in 5G penetration between the EU and the US by more than 15 percentage points by 2025,” said the report.

Furthermore, the report says that this ban could delay the rollout of high-speed 5G networks and deprive the European Union of around €45 billion in productivity growth.

IOL News adds that the US efforts to isolate the Chinese vendors amid a trade conflict with Beijing have thrown the global telecom industry’s network upgrade plans into confusion as Huawei is one of the biggest suppliers of the core infrastructure and radio access equipment and the second-largest producer of smartphones behind Samsung.

“We continue to stress that it is imperative that the market has the widest possible choice of equipment, technology and partners to drive, scale innovation and competition,” added a GSMA spokesperson.

[Source – IOL News]
[Image – CC 0 Pixabay]

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