Germany Mulls Paying Deutsche Telekom to Replace Huawei Gear

Pedestrians pass a Deutsche Telekom AG store in Berlin.

Photographer: Krisztian Bocsi/Bloomberg

Germany is considering using public funds to pay Deutsche Telekom AG and other telecom operators to replace Huawei Technologies Co. equipment, people familiar with the matter said.

The development would equate to a taxpayer-funded overhaul of the country’s telecom networks after operators long resisted government efforts to remove gear from the Chinese company over security concerns. It also effectively means extra spending on Germany’s digital infrastructure, which lags behind many other European countries.