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European telcos may get more time to phase out high-risk suppliers under EU proposal

BRUSSELS, ⁠Sept 29 (Reuters) - Europe's mobile telecoms operators could get more time to ⁠phase out equipment from suppliers deemed high risk, according to ‌a proposal by EU governments seen by Reuters, after the sector complained replacement could reach €40 billion ($45 billion).

The Star MalaysiaFoo Yun Chee查看原文 ↗
根据欧盟提案,欧洲电信公司或将有更多时间逐步淘汰高风险供应商。

Technicians work at the top of a mobile-phone relay mast in Lamballe, France December 13, 2022. REUTERS/Stephane Mahe

BRUSSELS, ⁠Sept 29 (Reuters) - Europe's mobile telecoms operators could get more time to ⁠phase out equipment from suppliers deemed high risk, according to ‌a proposal by EU governments seen by Reuters, after the sector complained replacement could reach €40 billion ($45 billion).

The European Commission proposed in January that components and equipment from high-risk ​suppliers be phased out from critical sectors as ⁠part of its overhaul ⁠of the EU Cybersecurity Act, a move that would mainly affect Huawei ⁠and other ‌Chinese technology companies.

It suggested a 36-month phase-out period for mobile operators. Europe has tightened scrutiny of Chinese technology following cyber ⁠and ransomware attacks and amid growing concerns about ​foreign espionage.

But EU governments ‌removed the deadline from the Commission's proposal, according to a ⁠document dated September ​22 seen by Reuters.

Instead, they said the phase-out period should depend on factors including the level of risk identified, product and infrastructure lifecycles, equipment replacement ⁠cycles, interoperability requirements and the availability of ​suitable alternatives.

Huawei denies its equipment poses a security risk.

EU countries must now negotiate the Commission's proposal and any amendments with EU lawmakers before the revised ⁠Cybersecurity Act can become law.

According to a February research note by Strand Consult, the largest share of equipment due to be replaced over the next five years is in Germany, Italy and Spain, with Deutsche ​Telekom and Vodafone heavily reliant on Huawei equipment ⁠in some markets.

In a joint letter earlier this month, Deutsche Telekom Chief ​Executive Timotheus Höttges and 16 industry peers ‌said replacement costs of up to €40 billion ​risk draining capital needed for fibre, 5G and 6G investments.

(Reporting by Foo Yun Chee. Editing by Mark Potter)

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