Huawei’s technology will need to be off the UK networks by 2027.
The future of Huawei continues to complicate. When more than a year has passed since the veto imposed by the United States Government towards the brand, the United Kingdom has decided to follow in Trump’s footsteps and prohibit the country’s companies from working with Huawei, thus avoiding the participation of the Chinese firm in the process of deployment of 5G networks in the United Kingdom.
In a press release, the Government led by Boris Johnson has announced this Tuesday a restriction on the purchase of Huawei telecommunications equipment to the country’s companies. The restriction will take effect from January 1, the day that telecommunications companies will not be able to acquire new equipment from Huawei, and all components manufactured by the Chinese company must be removed from network infrastructure before 2027.
Huawei’s technology must be off the UK’s 5G networks by 2027
Since the beginning of the year, the UK executive had already Huawei’s limited participation in the development and implementation of 5G networks in the country, at 35%. Despite this, the operator BK explains in a press release that the fact of removing Huawei from its list of partners will not affect the deployment of 5G networks in the country, despite the fact that the Chinese company had worked together with BT for 15 years without interruption. Still, a delay is expected between two and three years in the implementation of the new networks, as well as an additional cost that will exceed the figure of 2,500 million pounds.
The veto stems from the U.S. decision to ban Huawei from trading with U.S. companies due to alleged national security risksGiven that some politicians and experts consider that Huawei devices for telecommunications could be used by the Chinese government to obtain sensitive information. Accusations that, of course, from Huawei have been denied on several occasions.
Although the measure announced by the United Kingdom is mainly focused on avoiding the participation of Huawei in the implementation of 5G networks, the reality is that the country’s telecommunications companies will be forced to modify their current network infrastructure, since the equipment of the firm must also be removed from the current 4G networks implanted in the country.
After learning about the UK strategy, Huawei has released a statement in which he expresses his disappointment and calls the government’s decision “disappointing”, pointing out that it is “bad news for any UK resident with a mobile phone”, given that it has been decided to “take Britain to the digital lane slow, increase bills and deepen the digital divide. ” Despite this, the company explains that they will try to work with the United Kingdom to see how they can continue to contribute to the development of new technologies in Britain.
Statement regarding UK government decision
Ed Brewster, a spokesperson for Huawei UK, said: “This disappointing decision is bad news for anyone in the UK with a mobile phone. It threatens to move Britain into the digital slow lane, push up bills and deepen the digital divide.” 1 /4 pic.twitter.com/A0V7O1LQmr
– HuaweiUK (@HuaweiUK) July 14, 2020
Huawei maintains positive numbers despite everything
Despite the fact that the list of problems that Huawei must face seems to have no end, the truth is that the results Company reports remain generally positive. This Monday, the firm reported earnings of $ 64.8 billion During the first half of 2020, a growth of around 13% compared to the same period of the previous year. In the case of the consumer division –which encompasses the smartphone, tablet and smartwatches segments, among other devices–, the profits reached $ 36.5 billion.
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