The NCSC will consider the impact of new restrictions on Huawei’s ability to use US chipsets, and could decide to entirely exclude Huawei from UK networks.
Background: In the UK, the issue of Huawei’s role in 5G networks appeared to be settled in January 2020, when the Government decided operators can use equipment from the Chinese manufacturer in non-core parts of the network. Huawei’s presence in these non-core parts was also limited at a 35% market share, and operators were given three years to align to the cap. However, in March 2020 some members of Parliament challenged the outcome of the Telecoms Supply Chain review and put pressure on the Government to completely remove Huawei’s equipment from UK networks. Soon after, the Defence Committee in the House of Commons launched an inquiry into 5G security, thereby putting the Government’s decision under scrutiny.
The NCSC will review Huawei’s position again: On 24 May 2020, the National Cyber Security Centre (NCSC) announced it will carry out a new review of Huawei’s role in 5G networks. The initiative was reportedly in response to the recent decision of the US Department of Commerce to restrict Huawei’s access to US chipset manufacturers even when chipsets are produced outside the US. While the details of the new investigation are currently unclear, the NCSC’s initiative could give the Government an opportunity to change the decision of January 2020, and potentially decide to exclude the Chinese vendor entirely.
What could come next: Even if the Government changed its decision, the practical implications of removing Huawei from UK networks would not change, making it a lengthy and expensive process. The Government is reportedly considering compensation for operators forced to strip out Huawei kit, mirroring the approach adopted by the FCC to help rural operators in the US to do the same. The Government could also facilitate investment in OpenRAN solutions, which are seeing increasing support across the industry, although these are still at an early stage of development and may not be deployed in large-scale commercial 5G networks for several years.
