Telecom industry sees US$62 billion hit if Chinese banned from 5G

A ‘5G for Good’ advertisement hangs from robotic arms in the Deutsche Telekom AG pavilion at the CeBIT 2017 tech fair in Hannover, Germany.

A global ban advocated by US President Donald Trump would also delay the rollout of the high-speed 5G networks by at least 18 months and deprive the European Union of around €45 billion in productivity growth, according to a preliminary report drafted in April by the GSMA trade association and seen by Bloomberg.

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 Electronics Co.

Outright bans on Huawei appear unlikely in Europe, the region it relies on most for growth outside China, after Germany, France and Britain signalled more limited restrictions and tightened oversight of their networks.

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