Huawei ban in Romania could cost economy EUR 2.56 bln

By Edwig Ban
The pressure exerted by the Trump Administration to eliminate the Chinese company Huawei from the Romanian market can have a particularly costly impact on the revenues that the state can collect. Although no decision has been made yet, the Liberal government is increasingly tipping the scales against Huawei.
Romania was the first country in the world to sign a 5G Memorandum with the United States in the middle of a trade war between the United States and China, an act aimed at eliminating the use of Chinese equipment by Huawei, accused of allowing Chinese espionage on intelligence. western IT networks. On the other hand, Romania was among the first countries in the EU to launch 5G services even with Huawei equipment. A year has passed, the 5G auction has been postponed twice, and only now has the Government started to transpose the Memorandum with the US.
With what effects?
A ban on Huawei equipment in Romania’s 5G networks could delay 5G deployment in the country by up to three years and cost EUR 2.56 billion to the Romanian economy, according to a study conducted by Assembly Research for Huawei. Removing existing Huawei equipment will lead to a further delay in 5G rollout and more costs to the economy.
In general, any delay to the introduction of 5G networks means the country will not be able to generate the EUR 4.3 billion worth of total benefits the Romanian government expects 5G to deliver by 2025, the research estimates. The report comes as the Romanian government consults on new security requirements for telecom networks that could lead to a ban on risky suppliers.
Of the total EUR 2.56 billion economic impact estimated in the report, EUR 1.41 billion would be lost in strategic, operational, consumer and third-party benefits. The remaining EUR 1.15 billion would be a loss across the economy at large.