Britain commits US$333 million to help carriers replace Huawei 5G
- The Chinese telecoms firm is set to be banned from the country’s next-generation networks by 2027 due to security concerns
- A task force has been started to increase the number of suppliers, as Huawei’s exclusion leaves British phone carriers reliant on a Nokia-Ericsson duopoly
Britain will spend £250 million (US$333 million) to diversify its sources of 5G wireless equipment after banning China’s Huawei Technologies Co. from supplying the next-generation technology.
Huawei is set to be excluded from British 5G networks by 2027 due to security concerns, leaving phone carriers reliant on a supply duopoly of Finland’s Nokia Oyj and Sweden’s Ericsson AB.
Around £50 million ($67 million) of the total will be spent next year to help build “a secure and resilient 5G network” according to documents published on Wednesday as part of Chancellor of the Exchequer Rishi Sunak’s spending review.
The resulting reduction in competition could hurt security and push up prices, so Digital Secretary Oliver Dowden has started a task force to increase the number of suppliers. He is set to publish more details before the end of the year.
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China says UK has 'poisoned' Sino-British relationship over Hong Kong and Huawei
Britain’s crackdown on Huawei came in July after UK officials said US sanctions made it impossible to verify the security of Huawei’s supply chain.