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A ban on buying telecommunication equipment from Chinese companies would add about 55 billion euros (62 billion US dollars) to the cost of 5G networks in Europe and delay technology by nearly 18 months , according to an analysis of the sector.
The estimate is part of a report from the GSMA Telecom lobbying group, which represents the interests of 750 mobile operators.
The United States has added Huawei Technologies, the world's largest manufacturer of telecom equipment, to a blacklist in May, prompting global technology giants to sever ties with Chinese society and putting pressure on countries Europeans to follow suit.
Washington says Beijing can use Huawei's equipment for spying purposes, which the company has repeatedly denied.
The administration of US President Donald Trump comes as telecommunications operators around the world prepare for the arrival of the next generation of mobile technology, 5G, which promises ultra-fast mobile internet to those who are able to make the heavy investments needed in networks and equipment.
The GSMA has already expressed concern about the consequences of a total ban on Huawei, whose products are widely purchased and used by operators in Europe.
The estimate of 55 billion euros reflects the total additional costs involved in a total ban of purchases from Huawei and Chinese ZTE for the deployment of 5G networks in Europe.
The two Chinese suppliers hold a cumulative market share of more than 40% in the European Union.
"Half of this (additional cost) would be due to the high input costs of European operators following the loss of competition in the mobile equipment market," the report says.
"In addition, operators will need to replace the existing infrastructure before implementing 5G upgrades."
The Finnish manufacturer of telecommunications equipment Nokia said that it was not true.
"We propose a technical solution whereby we can overlay our 5G equipment on top of 4G equipment from another supplier. This solution could reduce the cost and complexity of supplier changes, "spokesman Eric Mangan said.
Nokia said this week that it had overtaken Huawei in terms of 5G orders and that its 5G offers were attracting growing interest in European countries debating the role of Chinese sellers in their networks.
According to the report, a ban would also delay the 18-month deployment of 5G technology, which will be used in areas ranging from autonomous cars to health and logistics.
"Such a delay would widen the 5G gap between the EU and the US by more than 15 percentage points by 2025," according to the report.
This delay would result from delivery difficulties for other major equipment manufacturers, such as Ericsson, Nokia and Samsung, in the event of a sudden increase in demand.
The need for telecom operators to switch from one set of equipment to another would also arise.
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