German government and mobile phone operators have reached a preliminary agreement to remove components from Chinese technology companies – Huawei and ZTE — in the 5G network within the next five years, Reuters news report said.
The agreement grants mobile network operators such as Deutsche Telekom, Vodafone, and Telefonica Deutschland additional time to replace critical parts. Deutsche Telekom, Vodafone, and Telefonica are already under pressure to complete their 5G network roll outs.
The initial phase, set for 2026, will involve removing technology made by companies such as Huawei and ZTE from the country’s core 5G data centers. In the second phase, the presence of Chinese-made parts in antennas, transmission lines, and towers is expected to be nearly eliminated by 2029.
The size of 5G technology market in Germany is expected to reach $69.64 billion in 2030 as compared with $15.58 billion in 2023, according to Stellar Market Research. Removal of ZTE and Huawei from 5G network in Germany will assist Ericsson and Nokia to add more business in Germany. Huawei is the world’s largest telecom network supplier.
Germany has 22.6 million 5G subscribers at present. By 2026, Germany will have 100.7 million 5G subscriptions, according to an ABI Research report on 5G market. By 2027, the amount of mobile data traffic generated over 5G networks in Germany will total 55.2 exabytes.
Driven by security considerations, Germany’s interior ministry stated that discussions with mobile carriers are ongoing. “The government is acting on the basis of the national security strategy and China strategy to reduce possible security risks and dependencies,” a spokesperson told Reuters.
Germany has been slower than other European Union countries in implementing security measures for 5G networks. Germany has asked telecom operators to remove networks supplied by Huawei and ZTE under pressure from the United States.
Telecom operators in Germany have previously resisted Berlin’s efforts to phase out Huawei technology due to the high costs involved. Huawei, on its part, has criticized the “politicisation” of cyber security issues in Germany.
Reflecting the financial impact of such transitions, the U.S. communications regulator (FCC) noted in May that nearly 40 percent of American telecom operators require additional government funding to remove Chinese telecom equipment from their networks to address security risks.
The United States never produced any report or proof to support their belief that both ZTE and Huawei are threat to their national security.
Baburajan Kizhakedath
