Britain delays decision on Huawei's role in 5G networks (updated)

Hutchison Telecommunications Hong Kong Holdings

22/07/2019 19:13

(Adds details, further quotes)
    LONDON, July 22 (Reuters) - Britain on Monday postponed a
decision on whether Huawei  HWT.UL  could participate in
building next-generation 5G mobile networks until it had a
clearer picture on the impact of U.S. measures taken against the
Chinese company.
    "These measures could have a potential impact on the future
availability and reliability of Huawei's products, together with
other market impacts, and so are relevant considerations in
determining Huawei's involvement in the network," Digital
Minister Jeremy Wright told parliament.
    Until the U.S. position was clearer, Britain had concluded
it was wrong to make specific decisions in relation to Huawei,
but would do so as soon as possible, he said.
    Huawei, the world's biggest telecoms equipment maker, is at
the centre of a geopolitical tug-of-war between China and the
United States. 
    The United States has threatened to cut off intelligence
sharing with allies who use Huawei equipment, which it says
China could exploit for spying. 
    China, in turn, has warned Britain that excluding Huawei
could hurt investment and trade.
    Britain's National Security Council, chaired by outgoing
prime minister Theresa May, discussed the issue in April and
decided in principle to block Huawei from critical parts of the
5G network but give it limited access to less sensitive parts.
    A final decision was supposed to have been included in a
telecoms supply chain review published by Wright on Monday, but
May's resignation has stalled the process.
    Wright said Britain could decide to ban Huawei from the 5G
network completely, a move telecom operators have said would
delay the rollout of services and significantly add to costs.
    EE, the BT-owned  BT.L  market leader, launched its 5G
network, which relies in part on Huawei's equipment, in May.
Vodafone  VOD.L  has also started UK 5G services.
    "It is of course a possibility and remains so that the
government may decide that an outright ban on Huawei equipment
in the 5G network is the appropriate course of action," Wright
said. 
    "All that I say today is that we are not yet in a position
to make a comprehensive decision about that and as soon as we
are then we will."
    

 (Reporting by Paul Sandle, Editing by Kylie MacLellan and Deepa
Babington)
 ((paul.sandle@thomsonreuters.com; +44 20 7542 6843; Reuters
Messaging: paul.sandle.thomsonreuters.com@reuters.net))