Government still unable to make a decision about Huawei use in UK 5G networks

Official review into Huawei's use in 5G networks claims current 'protections' are inadequate

The British government remains unable to make a decision on whether Huawei should be banned outright from 5G networks in the UK.

In a statement on Monday, Secretary of State for Digital, Culture, Media and Sport, Jeremy Wright told the House of Commons that the government is "not yet in a position to decide what involvement Huawei should have in the provision of the UK's 5G network".

The statement comes after mobile operators have already started building out their 5G networks. Networks such as Vodafone and Three UK have been using equipment from Nokia and Ericsson in their core 5G networks in preference to cheaper hardware from Huawei, while they await a government decision.

The lack of diversity across the telecoms supply chain creates the possibility of national dependence on single suppliers

Huawei has, instead, been preferred for less sensitive and non-core base station technology, in Three UK's case following the effective withdrawal of Samsung from the European market.

Wright claimed that the government was waiting for clearer guidance from the US over the precise nature of the potential threat that could be posed by using Huawei hardware in 5G networks.

The statement came the Supply Chain Review commissioned by Wright reached its conclusions, identifying three main areas of concern:

• First, that existing arrangements may have achieved good commercial outcomes but may not have provided incentives for better cyber-security risk management;
• Second, that policy and regulation in enforcing communications networks cyber security needs to be strengthened to address these concerns; and,
• Third, that the lack of diversity across the telecoms supply chain creates the possibility of national dependence on single suppliers, posing a range of risks to the security and resilience of telecoms networks across the world - not just in the UK.

Wright added: "The Review has concluded that the current level of protections put in place by industry are unlikely to be adequate to address the identified security risks and deliver the desired security outcomes.

"So, to improve cyber security risk management, policy and enforcement, the Review recommends the establishment of a new security framework for the UK telecoms sector. This will be a much stronger, security based regime than at present. The foundation for the framework will be a new set of Telecoms Security Requirements for telecoms operators, overseen by Ofcom and government," said Wright.

This, though, will delay a government decision over Huawei "until the new legislation is put in place". In the interim, the government and Ofcom will work with telecoms operators to secure their adherence to the new requirements on a voluntary basis.

The Review recommends the establishment of a new security framework for the UK telecoms sector

"The government will therefore pursue a targeted diversification strategy, supporting the growth of new players in the parts of the network that pose security and resilience risks. We will promote policies that support new entrants and the growth of smaller firms.

"This includes research and development support, promoting interoperability and demand stimulation, for example through the government's 5G Trials and Testbeds Programme. And we will also seek to attract trusted and established firms to the UK market," said Wright.

Huawei entered the UK market in earnest around 15 years ago when it under-bid Marconi for a key BT 21^st Century Network contract. Marconi subsequently required rescue and absorption by Ericsson. Over the same period, the communications equipment market has also lost other once-big players, such as Nortel, Alcatel and Lucent.

Huawei, though, was quick to respond to the publication of the Review, claiming that it exonerated the company from claims that it might be a danger to the integrity of the UK's communications networks.

"The UK government's Supply Chain Review gives us confidence that we can continue to work with network operators to roll-out 5G across the UK," the company claimed in a statement, indicating that the Review also gave Huawei the green light to sell communications equipment to support the UK's full-fibre roll-out.

It continued: "After 18 years of operating in the UK, we remain committed to supporting BT, EE, Vodafone and other partners build secure, reliable networks. The evidence shows excluding Huawei would cost the UK economy £7 billion and result in more expensive 5G networks, raising prices for anyone with a mobile device.

"On Friday, Parliament's Intelligence & Security Committee said limiting the market to just two telecoms suppliers would reduce competition, resulting in less resilience and lower security standards. They also confirmed that Huawei's inclusion in British networks would not affect the channels used for intelligence sharing."