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A delay in launching 5G will cost the UK economy billions and hamper innovation. Banning and removing Huawei from UK 5G networks by 2027 risks severely delaying carriers’ 5G rollout plans. This could cost the UK economy £ 18.2bn and risk the country losing its current competitive advantage in the 5G leadership, according to a separate report from Assembly Research.
The new report, commissioned by Huawei, is based on the government’s own expectation of a 3-year delay for the launch of 5G. Disposing of Huawei equipment by 2027 would lead to a further delay in deployment and a higher cost to the UK economy.
The report states that of the potential economic impact of £ 18.2 billion, approximately £ 10 billion of productivity benefits would be completely lost, while the mobile sector would lose the opportunity to generate around £ 4.7 billion and the Related industries would lose around £ 2bn. The overall economy would lose benefits estimated at around 1.5 billion pounds, according to the report.
In addition to losing an estimated £ 173 billion of incremental GDP over 10 years between 2020 and 2030, falling behind the 5G revolution will affect innovation. Image source: Assemblage.
In July, the Secretary of Culture, Oliver Dowden announced the ban on Huawei would become law under the Telecommunications Security Bill, and stated that the National Cyber Security Center (NCSC) had “significantly changed its security assessment” of Huawei’s presence on UK 5G networks.
The government said it acted on the advice of the NCSC in banning Huawei, but acknowledged that the decision would delay 5G rollout across the country by two to three years. They estimated that this would increase costs by as much as £ 2bn, as opposed to the £ 18.2bn suggested in this latest report.
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5G delay
Over the past 12 months, UK mobile operators have made significant progress in deploying 5G infrastructure, putting the UK in a position to reap future economic benefits.
However, Huawei’s ban has caused a significant delay in the rollout of 5G. The China-based company blames the UK’s decision as a result of continued American pressure. It says this means that deployment will be slow going forward, affecting industrial efficiency, global competitiveness, and the associated economic benefits of being a world leader in 5G.
Matthew howettAssembly Founder and Principal Analyst commented: “As a result of the additional restrictions on Huawei in the US, UK mobile operators will incur billions of pounds in costs to remove equipment from their networks. This report reaffirms that there is also an incalculable cost in terms of the economy and productivity impact that a delayed deployment of 5G will have, the scale of which the UK cannot afford given current economic circumstances. “
Victor Zhang, Vice President of Huawei, added: “This new research shows how the US administration has directly impacted the British economy, ending the UK’s leadership in 5G, preventing the country from realizing its full potential in the next years.
“Our priority at Huawei continues to be helping our customers deliver and help build a better connected UK. This independent investigation shows why we urge the government to reconsider its decision. “
Information age analysis
The United States initially banned Huawei out of fear that it has added software back doors that could easily be hacked. Huawei and China have argued that this was in fact a tactical move in a bitter trade war between the world’s two most powerful nations.
The UK government, perhaps pressured by the crucial trade talks between the US and the UK before Brexit, decided to do the same after the NCSC had “significantly changed its security assessment” of Huawei’s presence on the network. 5G from the UK.
This decision would not have been lightly: Huawei’s ban, whether for political or security reasons, will have significant implications for the UK’s place in the modern technology-driven world. Aside from the anticipated loss to the economy, a delay in 5G rollout will disrupt innovation across the UK and could cause the country to slide down the global pecking order.
