Connect Europe-funded report warns EU plan to ban ‘high-risk’ vendors could create new telecom risks

# What the report says

The report lists concrete effects: higher costs for telecom operators, a likely curbing of other network investment, and an unrealistic timetable for removing equipment and suppliers. It also warns the proposal could leave the industry with material operational and continuity challenges, although the text in the published excerpt ends before listing every consequence in full.

# Timeline and political context

Act proposes a set period to phase out risky vendors. Other coverage of EU developments shows a 36-month deadline was under discussion earlier in the year. Several EU member states have pushed back, arguing for more flexibility in phasing out equipment, with governments citing network state, risk level, and availability of alternatives as factors that should shape deadlines.

# Operational and financial implications

Research report focuses on concrete operator outcomes:

• Cost shock: Removing and replacing vendor equipment will generate direct capital and operational costs.
• Investment impact: Funds diverted to vendor replacement could reduce spending on other network upgrades or expansion projects.
• Supply-chain strain: Rapid removal may expose operators to shortages of alternative equipment and services, complicating rollout and maintenance.

The combination of those pressures could slow deployment of new network capabilities and increase short-term risk to service continuity.

# Policy friction inside the EU

Member states are not unanimous on timing and method. Several governments have signalled they want a more flexible timetable than a single fixed deadline. That position reflects differences in existing vendor footprints, procurement cycles, and domestic risk assessments.

Connect Europe's commissioning of the Assembly Research paper indicates active industry lobbying aimed at shaping the final text, particularly on deadlines and transitional provisions. The broader debate also touches procurement rules and whether the EU should create a harmonised risk framework to guide national decisions.

# What to watch next

• EU legislative negotiations over the Cybersecurity Act text and transitional deadlines.
• Any formal changes to the proposed phase-out period (reports indicate debate around a 36-month proposal).

If the draft law is tightened without clearer transitional arrangements, operators could face immediate budget and supply challenges. Conversely, broader flexibility could stretch the phase-out process but reduce short-term disruption.

# Bottom line

Research report, paid for by Connect Europe, cautions that the Commission's proposed removal of high-risk vendors could create substantial financial, operational, and investment risks for telecom operators unless deadlines and transitional measures are adjusted to reflect real-world network conditions and supply constraints.