Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

What would happen if the UK ditched the Chinese firm?

Huawei's future in the UK is in doubt - again.

The consequences could affect how quickly improved internet access is rolled out and how much it will cost. This a time when the country's economy is already in a precarious state because of the coronavirus pandemic.

The catalyst for a potential rethink is the US's move to restrict the firm's ability to buy chips, which was justified on "national security grounds".

On Sunday, the UK's National Security Centre (NCSC) confirmed it was examining what impact this would have on the UK networks that use Huawei's tech.

That sounds quite vague. But it potentially paves the way for a government U-turn.

In January, the prime minister gave the green light to continued use of the firm's tech in mobile and broadband networks, but said its its market share must be reduced.

Now he might appreciate the chance for change of mind.

It would help Boris Johnson prevent backbenchers who favour a ban from derailing his forthcoming Telecoms Infrastructure Bill.

Moreover, it offers him a way to defuse tensions with the White House, which has said continued use of Huawei will have a "dramatic impact on our ability to share [security] information".

Mr Johnson and President Trump may meet next month at a mooted G7 summit. Blocking Huawei could help secure a post-Brexit trade deal, even if it made relations with China trickier.

But the company warns there would be consequences.

"More suppliers means greater competition, innovation and network reliability, and crucially ensures consumers have access to the best possible technology," Victor Zhang, Huawei's UK chief, told the BBC.

"Removing Huawei would seriously delay 5G, costing the British economy up to £7bn," he added, citing a study published last year by Mobile UK, a trade group that represents UK network operators.


'Time consuming'

Part of the reason mobile providers are concerned is that the current version of 5G relies on new equipment being plugged into existing 4G kit from the same vendor.

"A lot of the 4G expansion was software-upgradeable to do 5G when an extra mast antenna was fitted," explained Andrew Ferguson, editor-in-chief of the news site ThinkBroadband.

So, he added, even if a Huawei ban was limited to the newer technology, networks would still have to rip out and replace some of their older infrastructure as well.

"It's not only a very expensive process for the operators, but it's going to be a time-consuming one as well because they need to get access to all those sites to make the changes," added Matthew Howett from Assembly, the consultancy that wrote Mobile UK's report.

"And Huawei has been very innovative at coming up with the smallest and lightest 5G equipment, meaning the operators can sometimes just use a cherry picker to hook it onto existing mast infrastructure. Some of the others' is heavier and bulkier, which can require more in terms of getting planning consent and road closures."

Huawei's major 5G rivals are Nokia and Ericsson - two European firms.

The networks claim that having three providers to choose from helps them negotiate lower prices.

In many cases, they want a mix of two suppliers so that if technical problems arise with one they can fall back on the other to provide a reduced service. That doesn't always involve Huawei - O2 for instance picked Nokia and Ericsson to be its primary 5G vendors despite having trialled the Chinese firm's kit.

A study commissioned by Huawei last year claimed locking it out would increase a country's 5G investment costs by between 8% and 29% due to reduced competition.

And if mobile providers have to spend more, consumers can expect their bills to rise too.

But one MP opposed to Huawei's rollout says there are more important considerations.

"There's a free and fair competition element here, there's a security element, there's a data-privacy element, and there's a sort of geopolitics of Chinese influence as well - the influence of the Chinese Communist Party," Bob Seely, a member of the foreign affairs committee, told the BBC.

"There shouldn't on principle be high-risk vendors in the communications network."

Huawei denies it uses state subsidies to undercut its rivals, adding that it would never spy on China's behalf or otherwise deliberately compromise its clients.


Home broadband

Huawei is also a big player in fixed-line broadband.

It currently accounts for about 44% of the equipment used in providing super-fast full-fibre connections directly to homes, office and other buildings, according to UK regulator Ofcom.

BT's Openreach division aims to bring that in line with a 35% government target by using more kit from Nokia and the US firm Adtran.

But this sidesteps the fact that more properties rely on an alternative set-up in which fibre only reaches roadside cabinets, and the last leg is supplied by a copper-based connection. The reason this is relevant is that tens of thousands of the cabinets involved are Huawei's.

"They connect directly to the core of the network," commented Mr Ferguson.

"But replacing those is a complete non-starter unless someone's going to throw many billions of pounds at it and also all the people to do the work."

While Huawei's opponents would prefer it to be gone altogether, they acknowledge this is impractical in the short term.

But Mr Seely suggested that cabinets and other such products should be swapped out for alternatives when they are "up for replacement".

One thing practically everyone agrees on is that the matter needs to be settled once and for at a time when so much else about the economy is uncertain.

"These procurement decisions can take 18 months to two years to finalise and it takes time to ramp up supply to meet the demand," said Mr Howett.

"So this isn't just a question of overnight deciding not to use Huawei - it would take many years to do it properly."

AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
Miliband Sets Climate and International Law at Centre of UK Diplomacy
Czech Central Bank Governor Rejects Early Euro Entry and Rate-Cut Pressure
Trump Readies New Tariffs as Temporary Global Levy Nears Expiry
Vivienne Westwood Casts Cicciolina, 74, in Its New Autumn Campaign
Dejavu: Germany’s Military Expansion Reshapes Europe’s Strategic Balance With France
Morgan Stanley Builds a Wall Street Lead in AI Infrastructure Finance
High Prices Push Coffee Drinkers Toward Whole Beans and Home Brewing
Trump Draws Boos and Podium Scrutiny at Spain’s World Cup Triumph
Brilliant move: Péter Magyar Moves to Nominate Chess Grandmaster Judit Polgár as Hungary’s President
Spain Defeats Argentina in Extra Time to Win Second World Cup
Current AI Seeks to Build an Open Global AI Infrastructure Outside Big Tech Control
Germany’s Economic Malaise Reopens the Sunday Shopping Debate
Proposed U.S.-Saudi Nuclear Pact Could Permit Limited Uranium Enrichment Under International Safeguards
Netherlands Declares Water Shortage Emergency After Drought Pushes Rivers to Historic Lows
Why Kentucky Fried Chicken Became KFC—and Why the False Explanations Persist
Ukrainian Drones Strike Wildberries Warehouses Deep Inside Russia
Reported CIA Mission Helped Clear the UAE’s Path to Advanced US AI Chips
Artificial Intelligence Capital Fuels Markets While Governments and Regulators Face Mounting Strategic Tests
China’s Moonshot’s Kimi K3 Narrows the Gap With Anthropic Through Scale, Openness and Lower Cost
The Ledger Will Not Trust on Faith
Trump Administration Pressures Banks to Restrict Financial Access for Undocumented Immigrants
Passenger Bound for Germany Refused to Sit Beside a Woman on a Plane — Then Slapped a Flight Attendant
Ukraine’s Leadership Rift Spills Into the Streets as Protesters Target Army Chief
Ukrainian Drone Barrage Kills Eight and Strikes Russian Logistics Network
The Ten World Cup Finals That Defined Football History
Smartphones Are Getting More Expensive, Sales Are Collapsing, and Even Apple Admits: "Prices Will Rise"
The Monaco Bombing Has Become a Test of Ukraine’s Intelligence Accountability
Leadership Change and Strategic Rivalry Redraw the Political Map
The AI Race Enters Its Infrastructure Era
Britain Nationalises British Steel to Protect Scunthorpe Production and Strategic Supply
French National Assembly Overrides Senate to Pass Historic Assisted-Dying Legislation
Spanish Prime Minister's Wife Ordered to Stand Trial as Corruption Probes Encircle Governing Party
Zelensky Faces Kyiv Protests Over Ousting of Dynamic Ukrainian Defense Minister
Thomas Tuchel Faces Fierce Backlash After Tactical Retreat Costs England World Cup Final Berth
A Quiet Bastille Day: France Grapples with World Cup Heartbreak and Leftover Fireworks
Spain in Ecstasy: "We Feel Unbeatable, We Taught the Whole World a Lesson"
Spain and UK Dismantle Gibraltar Border Following Landmark Schengen Integration Treaty
Hungary's "Puppet" President to Be Ousted, Orbán Fumes: "Democracy Is Dead"
Forget Tinder: The Surprising Platform Where People Find Love
Harvard Astrophysicist to Lead U.S. Scientific Advisory on Unidentified Aerial Phenomena
Emergency Sirens Activated Across Bahrain as Interior Ministry Issues Shelter Directives
World Cup Visitors Turn American Big-Box Stores Into Souvenir Stops
Netflix Weighs Always-On Channels, Bundles and Short-Form Video
Passenger Is Pulled Partly Outside Ryanair Jet After Window Fails Mid-Flight
The AI Invoice Shock: Layoffs Didn't Save Managers Money — They Cost Them More
Concern: Sexually Transmitted Bacterium Among Men Develops Antibiotic Resistance
Passenger Partially Pulled Out of Ryanair Jet After Cabin Window Fails Mid-Flight
Severe Heatwave Drives Dangerous Ground-Level Ozone Pollution Across Two Thirds of European Union
The Physical and Electronic Barriers Disrupting Domestic Wireless Networks
France and Morocco Open World Cup Quarter-Finals as Collina Defends Refereeing
×