The UK's new Telecoms Diversification Taskforce is recommending that smaller telecoms equipment makers should be used to supply 5G mobile networks following a ban on equipment from Huawei, reports the Financial Times.
The taskforce's report, seen by the FT, recommends that smaller suppliers should provide 25 percent of 5G network equipment by the mid-2020s. It also wants the UK government to attract 1-2 other large vendors to compete with Nokia and Ericsson in the 5G market, such as NEC and Samsung. The report also calls on the UK to work with other Western powers more on developing future mobile technology standards, in an attempt to counteract Chinese dominance.
The report claims it's not necessary for the government to provide telecoms operators with direct financial support to cover the estimated GBP 2 billion cost of stripping out Huawei equipment by 2027. Instead, it recommends that the government explore the possibility of providing mobile operators with tax relief for installing network equipment from smaller suppliers. The final recommendations of the taskforce will be published later this week.
