Britain bans Huawei from the future role in 5G network

#GS2 #Internationa relations

 Britain’s government on Tuesday backtracked on plans to give Chinese telecommunications company Huawei a limited role in the U.K.’s new high­speed mobile phone network in a decision with broad implications for relations between London and Beijing

Reasons:

  • Britain said it imposed the ban after U.S. sanctions made it impossible to ensure the security of Huawei equipment, forcing it to start turning to other suppliers for components. 
  • The U.S. threatened to sever an intelligence­sharing arrangement with the U.K. because of concerns Huawei equipment could allow the Chinese government to infiltrate U.K. networks.

Refrain from Huawei

  • The decision gives British telecom operators until 2027 to remove Huawei equipment already in Britain’s 5G network. The operators must stop buying 5G equipment from Huawei by the end of the year.

Huawei Tussle

  • Huawei is the world’s largest maker of telecommunications equipment and the No. 2 vendor of smartphones, ahead of Apple Inc.
  • However, notwithstanding its dominance, the US has effectively banned Huawei from selling its products after a 2012 congressional report stated that Huawei could be a security risk.
  • According to the US, Huawei’s owners have close links with the Chinese military and, as such, the company cannot be trusted with data.
  • The treatment of Huawei has become a massive reason for further straining the already fraught diplomatic relations between the US and China.

Huawei ban impact on India

  • Huawei was a major equipment supplier to companies like Vodafone Idea and Airtel during the initial rollout of the 4G services in India.
  • Over the years, Huawei has made inroads into nearly 25% of the total telecom equipment market in India.
  • 4G expansion - Now, the Department of Telecommunications said that it would rework the 4G network expansion tenders of BSNL and MTNL.
  • This would bar global vendors like Huawei and ZTE from participating.
  • 5G trials - In 2019, the telecom minister said that all players, including Huawei, were permitted to participate in 5G trials in India.
  • To allay security fears, Huawei had said it was ready to sign a no backdoor agreement with the government.
  • Under the agreement, Huawei would vouch that it did not gain access to any Indian customer’s equipment under any circumstance.
  • Barring Huawei and ZTE from even bidding in the 5G auctions could mean equipment as much as 30% costlier.

 Source: The Hindu

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