The U.K. government planned to phase out the Huawei 5G technology and as part of that plan, it is banning the installation of the new Huawei 5G equipment from September of next year. The government announced back in July that it would be barring firms from buying new equipment form Huawei starting from January 2021, due to the national security concerns revolving around the Chinese tech company.
This means that any telecoms companies that have stockpiled Huawei equipment ahead of January 2021 will not be able to use them for long-term 5G rollouts. Reports suggest that several companies have been stockpiling the equipment since summer. However, firms possessing old Huawei equipment will still be able to maintain it after September.
On the other hand, matters of the ban enforcement and the laws regarding it will be set by a new legislation in the Parliament this week. Furthermore, telecoms companies could be fined up to 10 percent of turnover or £100,000 per day if they fail to comply with the new security standards, according to the Telecommunications Security Bill requirements.
Alongside this move, the government is attempting to reduce the impact of removing Huawei’s equipment from 5G networks by promising to invest £250 million to encourage the growth of smaller players in the industry. The initiative will also contribute to the development of a new National Telecoms Lab as well as investment in new open radio technology in the country.
Huawei has been denying the accusations laid on it over national security risks. VP Victor Zhang labelled the government's decision for the ban as “politically motivated and not based on a fair evaluation of the risks”. The company has also refused to comment on the recent announcement by the government.
