Chinese communications giant Huawei has asked the Estonian government to review the draft of a regulation on the security of communications networks.
The draft regulation bans the use of solutions from manufacturers located outside the European Union, Nato and OECD member states in Estonian communication networks. If it comes into force this would abruptly suspend local telecommunications operators’ cooperation with Huawei, as its head office is located in China.
Huawei argues the economic impact of the draft communications regulation has not been realistically assessed for its economic impact and, according to a legal analysis commissioned by the company itself, the draft contains a number of issues related to the Estonian constitution, EU law and World Trade Organisation (WTO) rules, the company said in a press release.
Huawei said that, according to Finnish law firm AVANCE's senior economist Petri Rouvinen, banning and replacing Huawei equipment in communication systems could cause damage to the Estonian economy worth €167.6mn, or more than €120 per Estonian citizen. The ban on Huawei will lead to excessive costs and economic losses of €426mn-769mn for the removal of equipment and the introduction of new equipment, the company said.