The move is primarily driven by concerns over potential security risks linked to Huawei's infrastructure.

In contrast, Telefonica will continue to use Huawei equipment in Brazil and other Latin American countries, where there are no such restrictions.

Chief Executive Marc Murtra emphasized that all equipment from any provider must meet strict security standards to ensure the safety of the company and its customers.

While the shift away from Huawei in Europe presents logistical and financial challenges, Telefonica views compliance with regulations as essential for maintaining trust with authorities.

Overall capital expenditure (Capex) in 2024 amounted to €5,318 million, focusing on strengthening infrastructure such as fiber and 5G across key markets.

In the first half of 2025, Telefonica's Capex was €2,003 million, representing a 1.9% organic decline, with a focus on expanding ultra-broadband coverage.

In 2024, Telefonica's capital expenditure was highest in Brazil (€1,583 million) and Spain (€1,571 million), reflecting strategic investment priorities.

In the United Kingdom, Telefonica maintains very low exposure to Huawei, consistent with strict restrictions on the vendor's participation in telecom networks.

The different regulatory landscapes across Europe and Latin America require Telefonica to adapt its network strategies accordingly.

Telefonica, the Spanish telecom giant, is phasing out all Huawei-made 5G equipment in Spain and Germany due to local regulations aimed at mitigating security risks associated with the Chinese manufacturer.

Chief Operating Officer Emilio Gayo confirmed that this decision aligns with regulations in both countries that mandate a reduction of Huawei's presence in core 5G networks.

This selective disconnection from Huawei in Europe reflects Telefonica's need for operational efficiency amidst varying regulatory environments across regions.