The woes pile for Huawei with the UK government announcing a ban on its equipment in the set up of its 5G infrastructure. The country will phase out the Chinese technology giant and completely eliminate it from its 5G set up by 2027.
According to the announcement, Telecom operators in the UK cannot buy new 5G telecoms equipment from the Chinese firm from January 2021. The Operators also have seven years to remove existing Huawei technology from their 5G infrastructure. The estimates for replacing Huawei in the UK 5G infrastructure is about £2 billion.
The UK had in January 2020 allowed Huawei’s equipment to be used in the country’s 5G infrastructure, with some conditions. Huawei will not have more than 35 percent of the UK market share. Its equipment will also not be used in the core parts of the network or geographically sensitive locations.
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The UK government took the decision to ban Huawei at its National Security Council (NSC) meeting. The Prime Minister, Boris Johnson chaired the meeting which was in response to new US sanctions. It also follows a new report about Huawei’s role in the UK’s national infrastructure from the UK’s National Cyber Security Centre. The US imposed the sanctions on Huawei in May 2020 after the UK’s January decision.
The US has also put pressure on the UK to ban Huawei who they allege is helping China commit espionage. President Trump had put Huawei on an “entity list” back in May 2019, meaning US companies cannot sell tech to the company.
Under the new sanctions, Huawei cannot use American tech to design or produce its products. The ban also applies to its suppliers like chip manufacturer TSMC in designing or producing products for Huawei. The sanctions come into effect in September 2020.
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