Cybersecurity Act: Network operators sharply criticize Huawei ban

European network operators criticize the EU Commission's plans to completely exclude certain manufacturers from their networks. The draft of the second Cybersecurity Act (CSA) stipulates that high-risk suppliers should also be completely banned from the market and from the networks. The Commission does not name names, but the initiative is clearly aimed at Chinese providers such as Huawei or ZTE.

This would significantly exacerbate the situation for European network operators. And not just for them: mobile operators are by no means the only ones using products from these Chinese manufacturers. Products from these companies are also in use in other critical areas such as railways, the energy sector, or urban networks. Furthermore, Huawei is the global market leader in inverters for solar systems.

German Compromise

For German mobile networks, there is a compromise between politics and business: the Chinese will be removed from core networks and will be replaced in the radio access network in the foreseeable future where it can become critical – for example, with software for network management. Antennas and other hardware from Huawei & Co. will remain in use. If the EU Commission has its way, that would be the end of it: as soon as the EU classifies a supplier like Huawei as high-risk, already active components would have to be decommissioned.

The EU law is still a draft, but the affected industries are already positioning themselves in Brussels. "We warn against measures that would significantly weaken the very sector they are intended to protect," reads a statement from the association Connect Europe, which primarily represents formerly state-owned network operators such as Telekom, Orange, and Telefónica.

Blanket interventions in the supply chain would "significantly and adversely affect network expansion, operational continuity, and investment planning," the association warns and already calls for "mitigating measures such as cost reimbursement mechanisms" in advance. In principle, measures must be "risk-based, proportionate, and practicable."

"Unnecessary and Disproportionate"

The umbrella organization of the mobile communications industry also speaks out sharply and opposes blanket regulation at the EU level. "Not all equipment components are equally sensitive, so blanket approaches are unnecessary and disproportionate," warns the GSMA, emphasizing that member states must remain responsible for national security issues.

While security and resilience are top priorities, the EU Commission's plan could reduce the resources available for further network expansion, warns the GSMA. Legislative measures must be "targeted and risk-based" and offer affected companies "long-term predictability." The EU proposal lacks proportionality and carries the risk of significant disruptions and costs.

Huawei itself also criticizes the EU plan as undifferentiated. "A legislative proposal that restricts or excludes non-EU suppliers based on their country of origin rather than on facts and technical standards violates the EU's fundamental legal principles of fairness, non-discrimination, and proportionality, as well as its obligations to the World Trade Organization (WTO)," a spokesperson told the Reuters news agency.

(vbr)