(JW Insights) Mar 20-- A ban on certain components by Chinese companies Huawei and ZTE could have a significant impact on Germany's mobile network if they have to be replaced on a larger scale, according to a German economy ministry letter seen by Reuters.
The German government is currently carrying out a review of telecom tech suppliers which it says is not directed at specific manufacturers.
The precise impact on mobile operators and other economic players is not possible to assess, the ministry added, as it depends on individual decisions as well as transition periods.
The government's review could lead to operators being asked to remove and replace components already built into 5G networks. Under current legislation, they would not receive compensation, said Reuters.
Earlier, it was reported the German government plans to ban telecom operators from using certain components from Huawei and ZTE in their 5G networks. A Huawei spokesman said the company has a very good safety record over 20 years of supplying technology to Germany and the rest of the world, and did not comment on speculation about a possible ban.
The spokesperson of the Chinese Embassy in Germany said that China firmly opposes Germany's generalization of the national security concept and the abuse of state power in the market intervention in its cooperation with China, which is not only against the economic law and the principle of fair competition, but also harms others.
It is said among German and European business communities that the German government's approach will delay the construction and promotion of the 5G network in Germany and cause additional costs. The German government should listen carefully to its domestic and rational voice, said the Chinese embassy spokesman.