Britain will spend £ 250 million ($ 333 million) to diversify sources of 5G equipment, after banning Huawei from supplying the technology here.
Huawei will be dropped from UK 5G networks in 2027 due to security concerns, leaving carriers only dependent on Nokia and Ericsson. The first £ 50 million will be spent next year to support the construction of a “secure and flexible 5G network”, according to documents released on November 25.
Eliminating a competitor reduces competition, pushes prices, and compromises security. Because of this, Digital Secretary Oliver Dowden has formed a special force, with the aim of increasing suppliers. He will announce more details before the end of this year.
The decision to ban Huawei was made in the UK in July, after British officials said that US sanctions would make it impossible for them to verify the safety of the Huawei supply chain. The White House denies Huawei as a national security risk, something the Chinese company has repeatedly denied. Since then, Nokia and Ericsson have won many major contracts from UK carriers such as BT Group, Three UK.
The telecom industry is hoping that long-term initiatives like OpenRAN will bring more competition. OpenRAN is an open access radio network project that uses software to run network functions in the cloud, a process that previously required many physical devices. This technology promises to radically cut costs for telecom carriers, by using cloud-based software and available hardware, instead of using equipment developed by Nokia, Ericsson, or Huawei.
Du Lam (According to Bloomberg)
Huawei’s global smartphone market share may drop to 4%
A “terrible” drop for the manufacturer has reached “king” in smartphone market share this summer.