Germany Considers Paying Operators to Remove Huawei Equipment

Germany could cover operators’ costs to remove Huawei equipment from networks. The measure should speed up the process; however, it could result in scrutiny over the use of public funds.

One estimate puts the total cost of removing Huawei’s equipment at more than €2 billion, and operators are perceived to have resisted stripping the infrastructure, which the state is concerned poses a national security risk. Deutsche Telekom referred to an agreement operators struck with the government in 2024 covering arrangements on how to handle Chinese telecoms equipment.

DT, Vodafone Germany, and Telefonica Deutschland agreed to begin excluding Huawei and ZTE equipment from 5G networks in late 2026. Any public money used could contribute to closing a gap in German digital investment relative to other European countries. The method of any approach is not settled.

One scenario would involve using defense or infrastructure budgets to fund the replacement, but discussions are ongoing and subject to change. The German government denied knowledge of any such plan, according to media reports.