Germany has ordered its mobile carriers to fully remove Chinese components within their domestic 5G networks by 2029.

It's a move that represents a significant blow for Chinese vendors Huawei and ZTE.

A ban had been on the cards for some time, with Germany opting to follow other markets such as the UK in banning Chinese companies from active roles in domestic 5G networks, amid security concerns.

Increased pressure from the US, first under former President Donald Trump's government and then under the current Biden Administration, has led to the country's allies imposing sanctions on Huawei, ZTE, and a number of other Chinese firms.

The phase-out of the components will be carried out in two stages, with German telcos told to remove equipment, mainly supplied by Huawei and ZTE, from their core networks, including within their data centers by 2026.

The second phase of the ban is for companies to have removed all Chinese equipment from the broader network and transmission sites, such as radio antennas, by 2029.

Such a ban could present a big headache for German operators, with a Strand Consult report previously revealing that Huawei accounts for 59 percent of the 5G Radio Access Networks (RAN) in the country.

"We are protecting the central nervous system of Germany as a business location, and we are protecting the communications of citizens, companies, and the state,” said Interior Minister, Nancy Faeser today (July 11).

The government said it wants the country to avoid "one-sided dependencies."

Unlike some of its allies in Europe, Germany had been more reluctant to impose sanctions on Huawei.

Germany's government stated in December 2022 that it wasn't looking to impose a ban on Huawei, and that it would assess Chinese telecoms vendors on a 'case-by-case' basis approach.

However, by September it emerged that Germany’s Interior Ministry wants to ban critical components from Huawei and ZTE Corporation from its 5G mobile network.

Deutsche Telekom has previously said that such a timeline (2026) is unrealistic.

"Over the past 20 years, Huawei has developed into a continuously innovative, secure, and reliable telecom equipment supplier in the German market," said Huawei in a statement to DCD.

"There is no specific evidence or scenario that Huawei's technology has cyber security risks. We will continue to cooperate with customers and partners in a constructive and open manner, promote the improvement and progress of cyber security, and promote the construction of mobile networks and digitalization in Germany. We are assessing the relevant implications of the agreement in detail and reserve the right to comment.”

DCD has also contacted ZTE for comment.

Alleged government ties

Huawei has been seen as a threat to national security in several Western nations due to its alleged close ties with the Chinese government.

In 2020, the European Commission (EC) urged EU states to restrict "high-risk vendors" such as Huawei as they rolled out their national 5G networks.

The UK, Denmark, Sweden, Estonia, Latvia, and Lithuania have banned Huawei from playing a part in their 5G network infrastructure. Though no longer part of the EU, the UK initially granted the vendor a limited role in its 5G build before banning the company six months later in July 2020.

Back in 2020, the EC was resisting pressure for a full ban from the US, where President Donald Trump was ramping up efforts to ban Huawei from a key role in 5G networks.

President Biden then banned Huawei in early 2023 and added ZTE to the restrictions list.

Operators in the UK were given a deadline for their rip and replace of Huawei equipment within their core networks for the end of last year. BT narrowly missed this deadline, but reported in February that it was close to removing the remaining kit.

Telcos have until 2027 to remove all Huawei technology from the UK’s 5G public networks.

The telco has previously estimated that removing Huawei from its networks would cost around £500 million ($646m) between 2020 and 2025.

In the case of Germany, it's not clear who will foot the bill for the removal of the equipment, which has been a difficult process for a lot of countries.

Rip and replace takes time

In the US, the rip and replace scheme has been even more disruptive for regional providers.

It emerged in January that the Federal Communications Commission (FCC) reported only five companies had completed the removal of banned Chinese telecom equipment. As of last week, only 12 percent of companies involved in the program had completed their work to remove the kit.

It stems back to 2019, when Congress passed the Secure and Trusted Communications Networks Act, which authorized the FCC to reimburse certain telecommunications providers for the removal of Huawei and ZTE Corp.

To support the removal of this equipment, the FCC agreed to provide up to $1.9 billion for communications providers that have 10 million or fewer subscribers.

However, funding applications hit $4.98 billion, creating a $3.08 billion shortfall. The FCC has previously argued for more funding.

Earlier this week, Mediacom Communications Corporation (MCC) said it's on course to complete the removal of banned Chinese equipment from its network this month.

US regional wireless carrier SI Wireless told DCD earlier this year that it fears for its future, amid the slow progress of the program.