United Kingdom to support Nokia and Ericsson

23. 07. 2020 Thursday / By: Robert Denes / Business / Exact time: BST

Nokia, a telecommunications company in Finland, can already be sure that if it does not build the 5G network in England as a whole, it will benefit from the construction of the network infrastructure.

The UK has said it needs to protect Nokia Oyj in Finland and Ericsson Ericsson AB in Sweden after banning China’s Huawei Technologies Co. into UK 5G networks.

By excluding Huawei, the UK will reduce the number of critical telecom operators from three to two - so it can’t afford to have one of them disappear, Oliver Dowden, cultural secretary, told lawmakers on Wednesday.

“The biggest immediate direct risk of diversification will be that we lose another supplier, which is very strongly in our considerations and discussions,” Dowden told the Science and Technology Committee’s legislators. This includes “examining the underlying capital position of these companies and examining whether there is further action in this area”.

Last week, the government said carriers should remove Huawei’s 5G engines from their network by the end of 2027, saying U.S. sanctions make it impossible to guarantee the sustainability or safety of the equipment. As a result of the ban, the White House has been campaigning for allies to ban the seller for years, reversing a UK decision in January that allowed carriers to use Huawei’s limited capacity.

Prime Minister Boris Johnson plans to launch a task force led by a leading industry leader to diversify turbocharged telecommunications, Dowden said. Officials are now considering candidates.

The UK’s diversification strategy includes bringing new entrants to market for the next generation of wireless communications, as well as encouraging projects to bring products from different companies together, Dowden said. Further details of the approach will be released in September when officials introduce a telecom security bill to tighten standards and incorporate the Huawei ban into law.

“The reality is that Samsung or NEC would be in the best position to enter the UK market, although there are still significant challenges,” he said, partly suggesting that Samsung does not support older 2G and 3G systems.

According to Dowden, diversification with openRAN, which refers to a more competitive ecosystem of wireless technology based on open standards, is a longer-term goal, and the first major deployments are still about. They are in five years.

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