Britain sets to bar Huawei from 5G wireless networks

Britain will bar new deployments of Huawei equipment in its fledgling high-speed 5G network.
July 14, 2020 | 18:06

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Illustrative image of Reuters

Britain will bar new deployments of Huawei equipment in its fledgling high-speed 5G network, which is expected to be announced on July 14 and take full effect in January.

The British decision is part of a growing shift away from China in the global 5G competition, according to washingtonpost.

Britain will also announce it will phase out over several years the small amount of Huawei 5G equipment installed in recent months, officials familiar with the matter said on the condition of anonymity.

Reuters on July 13 also said Prime Minister Boris Johnson is set to ban Huawei from Britain's 5G network in a landmark decision that will anger Beijing but win plaudits from President Donald Trump as the United States grapples with China's rising economic and technological clout.

Huawei sees sharp growth slowdown

Huawei reported a sharp slowdown in revenue growth on July 13, ahead of Britain's expected decision to ban the company from its 5G telecom networks - a move likely to add momentum to a U.S. campaign against it and threatening its global prospects, said USNews.

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A logo of 5G is seen at a Huawei authorised experience store on May 29, 2020 in Beijing, China. Getty Images

Huawei, which prior to the coronavirus pandemic had already forecast a "difficult" 2020, said revenue rose 13.1 percent to 454 billion yuan (USD 64.90 billion) in the first half of the year. The growth rate was down from 23.2 percent in the first half 2019. Net profit margins were 9.2 percent, up from 8.7 percent in the first half 2019.

Huawei did not publish data on how many smartphones it had shipped during the period, as it has in the past. Research firm IDC reported Huawei was the second-largest phone maker in the first quarter of 2020, with a 17.8 percent market share, behind Samsung Electronics Co Ltd and ahead of Apple Inc.

American officials placed Huawei on a blacklist in May of last year, restricting sales of US-made goods such as semiconductors and blocking Huawei from using Google's smartphone services. /.

Germany and other European countries also finalize their policies on Huawei and 5G. The German government is expected to made a decision in September.

In Italy, Telecom Italia has excluded Huawei from a tender for 5G equipment for the core network it is preparing to build in Italy and Brazil, two sources familiar with the matter told Reuters last week.

The head of French cybersecurity agency ANSSI ruled out a total ban on Huawei equipment for 5G networks in a newspaper interview on Sunday, but said French telcos were being encouraged to avoid switching to the Chinese company.

Last month, the Asian city-state of Singapore selected Nokia and Ericsson over Huawei to build its main 5G networks.

The campaign against Huawei began in 2018 in Australia when the government effectively banned it after finding it could be exploited for spying. Since then US allies including Canada, Japan and New Zealand have excluded Huawei from 5G projects, but most European governments declined until recently to follow suit.

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