UK Review into Huawei's 5G Role Will Report Back Within Weeks Amid US Sanctions Worries

Strategic Insights -

The UK government's review into the impact of new US sanctions on Huawei's planned role in supplying 5G networks in the UK will report back within weeks, officials have said. This comes as the National Cyber Security Centre, a branch of UK signals intelligence agency GCHQ, undertakes an emergency review. The review gives Prime Minister Boris Johnson the opportunity to execute a U-turn on his contentious decision in January to grant Huawei a limited role as a supplier of telecoms equipment for the country's 5G mobile phone networks. The latest US sanctions and the UK review have brought fresh uncertainty for UK mobile network operators EE, Three, and Vodafone, which have used Huawei kit in their nascent 5G networks.

Key Takeaways:

  • The UK government's review into the impact of new US sanctions on Huawei's planned role in supplying 5G networks in the UK will report back within weeks.
  • The review is being undertaken by the National Cyber Security Centre, a branch of UK signals intelligence agency GCHQ.
  • Prime Minister Boris Johnson's decision in January to grant Huawei a limited role as a supplier of telecoms equipment for the country's 5G mobile phone networks has come under heavy fire from rebel Conservative MPs and the US government.
  • Rebel Conservative MPs are pushing for Huawei kit to be stripped out of all UK telecoms infrastructure by 2023.
  • The UK telecoms industry has warned that an immediate ban on using Huawei's 5G kit would cause a two-year delay in the full rollout of networks.
  • There is a growing sense in the sector that ministers could seek to gradually reduce Huawei's presence in the UK's telecoms infrastructure to zero after 2023.
  • Huawei's rivals, including Ericsson and Nokia, and start-up players in America and Europe, could be championed jointly with allies such as the US in building up, or the market could be remedied by investing jointly with allies in building up Huawei's rivals.

Statistics:

  • The US sanctions are expected to take effect in September.
  • The UK government is expected to report back to mobile operators by the end of July with a decision on whether Huawei can remain a 5G kit supplier.
  • The US sanctions on Huawei are much more targeted than those imposed by Washington on the company a year ago.
  • The UK mobile industry has warned that an immediate ban on Huawei's 5G kit would cause a two-year delay in the full rollout of networks.

Sources:

  • BBC News, "Huawei 5G ban in the UK to be reviewed by Boris Johnson's government", June 30, 2020
  • The Times, "Huawei review to report back within weeks as US sanctions take effect", June 30, 2020
  • The Financial Times, "Huawei faces fresh uncertainty as UK reviews impact of US sanctions", June 30, 2020