A new report claims mobile operators cannot afford to keep Huawei in their networks for security reasons, and the cost of replacement is much less than previously thought.
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That the U.S. House Energy and Commerce Committee is mulling over a last and final sweep up of Huawei networking equipment will not come as a surprise. The battle between Washington and Huawei has been raging for months, and the impact of U.S. sanctions on the Shenzhen tech giant’s has made almost daily headlines.
Strand’s analysis focuses on European networks needing to upgrade to 5G regardless of whose equipment they select, and suggests that previous estimates of the costs involved in a Chinese-cleanse have overlooked this fact. “There is a sunk cost to network upgrades which must be subtracted from the total cost of using Huawei. Most of Europe’s networks are already 3-5 years old and are ready to be replaced.
Strand told me that there has been tremendous interest across the industry in his report, “with hundreds of enquiries,” it’s available on a request basis and so he has visibility of the companies, regulators, industry bodies and governments that have asked to see the research. “To date,” he said, “the calculations and assertions in our report have not been challenged.” Strand has also been engaged in discussions with U.S.
“Restricting Huawei and ZTE from networks,” Strand says, “does not harm the economy for Europe’s mobile operators nor does it meaningfully reduce competition nor does it delay rollout. However, removing Huawei and ZTE equipment from the network can greatly improve security.”
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