Stripping out Huawei from its European core will cost Vodafone $220m

Published: 5 February 2020 - 11:53 a.m.

Vodafone Group has confirmed that stripping out and replacing Huawei technology from the core of its European mobile networks will cost around $220m (£170m) and take upwards of five years to complete.

Last year, Vodafone Group confirmed that it would pause Huawei’s involvement in its network-core but a recent decision by the UK government to ban Huawei from the core of its network has prompted the Berkshire headquartered telco to take similar steps across its European portfolio.

“On 5G network security and supply chain resilience, I am pleased that the UK process was conducted on the basis of facts and evidence and informed by advice from the National Cyber Security Centre," Read told reporters from The Telegraph.

"Vodafone UK is already largely compliant with these measures and so we have very limited financial exposure, following our decision last year to pause Huawei in the core of our networks in Europe.

“Given the industry's financial constraints, any restrictive cap is ultimately going to divert resources to a swap that we would have done by 5G rollout.

"So you are essentially going to delay 5G rollout by anywhere between two and five years, depending on which country decides if it wants to do some sort of cap - and it could lead to price increases in that market," he added.

Following its acquisition of a string of telecoms assets from Liberty Global in Eastern Europe last year, Vodafone is now Europe’s largest provider of converged telecoms services. It provides mobile network services to around 625 million consumers (including over 300 million in India through its joint venture, Vodafone Idea).

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