On November 26, after prohibiting Huawei from participating in the construction of future 5G networks, the United Kingdom announced that it would invest 250 million pounds (approximately 2.2 billion yuan) to help operators replace Huawei's 5G equipment and maintain a diversified source of 5G equipment.

For security reasons, Huawei equipment will be excluded from the 5G network in the UK by 2027, which will force mobile operators to rely on the duopoly supply of Finland's Nokia and Sweden's Ericsson.

Earlier, a report commissioned by Huawei found that due to the order to remove Huawei equipment from the 5G network by 2027, the British economy is expected to suffer as much as 18.2 billion pounds (about 160 billion yuan). This move is still possible. Leading to further delays in deployment.

Philip Jensen, the chief executive of British Telecom, the largest operator in the UK, predicts that the ban will cost the company 500 million pounds. In contrast, Vodafone estimates the cost of removing Huawei’s equipment to be “billions of pounds”.

As part of the expenditure review of the British Chancellor of the Exchequer Rishi Sunak, the latest documents show that the UK will spend about 50 million pounds (about 440 million yuan) next year to help build a “safe and resilient 5G network” .

The ensuing reduction in competition may harm safety and push up prices, so the UK's Minister of Digital Oliver Dowden (Oliver Dowden) has set up a task force to help increase the number of suppliers. He will announce more details before the end of the year.

In July of this year, Huawei's telecom equipment business began to suffer setbacks in the UK. Prior to this, British officials said that US sanctions prevented them from verifying the security of Huawei's supply chain. Since then, Nokia and Ericsson have won large orders from three British operators under the BT Group and CK Hutchison Holdings.

Other large global suppliers (such as South Korea's Samsung) have not yet provided suitable 5G equipment, nor can they immediately win large contracts with British operators. (Little)

Source: NetEase Technology Report, translated by Google Translate