Recommendations & Conclusions
30 items
1
Recommendation
Second Report: 5G market diversificatio…
The Government’s ‘5G Supply Chain Diversification Strategy’ provides an overview of the Government’s intentions for addressing the current lack of vendors in the UK’s 5G infrastructure equipment market. The Government itself acknowledges that this will take time. Although the decision to forbid the use of 5G equipment procured from Huawei …
Government response. The Government agrees with the Committee’s assessment of the scale of the diversification challenge and agrees that there is a need to work at pace to make early progress and build momentum as we work toward our long term ambitions. …
Department for Science, Innovation and Technology
2
Conclusion
Second Report: 5G market diversificatio…
The Government is seeking to attract existing vendors to the UK market in order to diversify the telecommunications vendor market in the short-term. One of the major barriers faced by such companies is the requirement of British network operators for continued provision of older generations of network technology. The main …
Government response. The Committee rightly notes that the provision of older generations of network technology is a major barrier to diversification. The Government recognises the benefits of a transition away from these technologies, but we recognise the challenges associated with this, including …
Department for Science, Innovation and Technology
3
Recommendation
Second Report: 5G market diversificatio…
In addition to considering the case for transitioning away from 2G and 3G technologies, the Government should propose measures within the next six months that could facilitate market entry by existing vendors in the near-term. It should consider options for addressing the barrier of operators’ preference for vendors to offer …
Government response. The Committee rightly notes that the provision of older generations of network technology is a major barrier to diversification. The Government recognises the benefits of a transition away from these technologies, but we recognise the challenges associated with this, including …
Department for Science, Innovation and Technology
4
Conclusion
Second Report: 5G market diversificatio…
The Government is right to support the development and adoption of open standards and increased interoperability as a potential means of diversifying the telecommunications equipment vendor market. It is also right to identify Open RAN as a prominent approach to achieving this, but not the only one. However, neither the …
Government response. The Diversification Strategy set out that technologies based on openness and interoperability —such as Open RAN—have a key role to play in enabling diversification. Though Open RAN is an emerging technology, the Government recognises its potential to positively impact competition …
Department for Science, Innovation and Technology
5
Recommendation
Second Report: 5G market diversificatio…
The Government should support Open RAN and other efforts to drive the adoption of open standards and greater interoperability. While the success of Open RAN is not guaranteed, the Government should encourage the deployment of Open RAN to ensure that the UK is not behind others in deploying this technology. …
Government response. The Diversification Strategy set out that technologies based on openness and interoperability —such as Open RAN—have a key role to play in enabling diversification. Though Open RAN is an emerging technology, the Government recognises its potential to positively impact competition …
Department for Science, Innovation and Technology
6
Recommendation
Second Report: 5G market diversificatio…
The first live networks using Open RAN are being deployed, with one having launched in Japan last year. The Government should evaluate these initiatives and report regularly on what lessons can be learned from foreign experiences to inform the UK’s strategy for diversifying the vendor market and improving telecommunications security, …
Government response. The Government agrees that regular information sharing with international partners is crucial to informing our approach to implementing the UK’s strategy for diversifying the supply chain. The example cited by the Committee of Rakuten’s virtual Open RAN deployment in Japan …
Department for Science, Innovation and Technology
7
Recommendation
Second Report: 5G market diversificatio…
We heard evidence during our inquiry supporting the Government’s assessment that network operators’ preference for vendors with proven track records acts as a barrier to potential market entrants. The Government’s proposals to establish testing and validation facilities, and to reduce regulatory disincentives for network operators to integrate new vendors into …
Government response. The UK Telecommunications Laboratory (“the Lab” —formerly the National Telecoms Lab) is a key element of the Government’s approach to investing in research and development activity that builds technical and commercial relationships between operators and suppliers. Work to establish the …
Department for Science, Innovation and Technology
8
Conclusion
Second Report: 5G market diversificatio…
Measures to support research and development form a major part of the Government’s ‘5G Supply Chain Diversification Strategy’. Nevertheless, the total funding of £250 million for initial implementation of the strategy is significantly smaller than the tens of billions of pounds invested annually in research and development by the main …
Government response. The Government announced an initial £250 million of investment in research and development to drive early work on the diversification agenda. As set out in the Diversification Strategy, the early focus is to address the concentration of supply in the …
Department for Science, Innovation and Technology
9
Recommendation
Second Report: 5G market diversificatio…
The collaborative research and development networks that the Government seeks to develop to support diversification of the telecommunications market should encompass relevant groups at universities and research institutes as well as small- and medium- sized enterprises and large companies. The Government should aim to actively co- ordinate the research and …
Government response. The Government announced an initial £250 million of investment in research and development to drive early work on the diversification agenda. As set out in the Diversification Strategy, the early focus is to address the concentration of supply in the …
Department for Science, Innovation and Technology
10
Conclusion
Second Report: 5G market diversificatio…
There is strong support for the establishment of common testing facilities for new 5G infrastructure equipment, to provide a variety of services that could help to drive diversification. The National Telecoms Lab—which appears to be the main facility proposed by the diversification strategy—seems, however, to be focused heavily on security …
Government response. The Government announced an initial £250 million of investment in research and development to drive early work on the diversification agenda. As set out in the Diversification Strategy, the early focus is to address the concentration of supply in the …
Department for Science, Innovation and Technology
11
Recommendation
Second Report: 5G market diversificatio…
In addition to conducting security testing and validation, the Government should ensure that the research and testing facilities established through the diversification strategy also drive market diversification by stimulating collaboration and supporting the development and commercialisation of new technologies. (Paragraph 49) 50 5G market diversification and wider lessons for critical …
Government response. The Government announced an initial £250 million of investment in research and development to drive early work on the diversification agenda. As set out in the Diversification Strategy, the early focus is to address the concentration of supply in the …
Department for Science, Innovation and Technology
12
Recommendation
Second Report: 5G market diversificatio…
Testing facilities do not need to be situated in one physical location. The Government should ensure that any new testing facilities complement existing facilities, and are designed with potential developments in 5G technology in mind to guard against future redundancy.
Government response. The Government announced an initial £250 million of investment in research and development to drive early work on the diversification agenda. As set out in the Diversification Strategy, the early focus is to address the concentration of supply in the …
Department for Science, Innovation and Technology
13
Conclusion
Second Report: 5G market diversificatio…
New vendors of 5G telecommunications equipment face challenges in scaling up their production rapidly enough to meet network operator demand and compete with incumbent vendors. Although the Government’s diversification strategy identifies this barrier to market entry, it defers details of any significant measures to address it until publication of a …
Government response. The Government’s previously stated ambition is for the majority of the population to have access to 5G by 2027. All four Mobile Network Operators have launched their 5G networks and 5G is now available in 350 towns and cities across …
Department for Science, Innovation and Technology
14
Recommendation
Second Report: 5G market diversificatio…
The Government should align its strategy for diversifying the 5G vendor market with its support for rolling out 5G network coverage. Wherever the Government provides funds for expanding 5G coverage, it should look for opportunities to simultaneously support vendor diversification, for example by requiring the use of open standards. The …
Government response. The Government’s previously stated ambition is for the majority of the population to have access to 5G by 2027. All four Mobile Network Operators have launched their 5G networks and 5G is now available in 350 towns and cities across …
Department for Science, Innovation and Technology
15
Recommendation
Second Report: 5G market diversificatio…
The Government identified the concentration of intellectual property rights in the hands of established vendors as a barrier to market entry. It commits in its diversification strategy to working with industry bodies to address this, although the proposed work is not described in great detail. In its response to this …
Government response. Intellectual property rights, and in particular Standard Essential Patents, play a key role in the design and development of telecoms radio equipment. As set out in the Diversification Strategy, in the context of 5G the commercial behaviour around both intellectual …
Department for Science, Innovation and Technology
16
Conclusion
Second Report: 5G market diversificatio…
Long-standing factors have driven consolidation in the telecommunications vendor market over many years, so it is critical that the Government adopts measures to maintain market diversity as well as to drive the initial diversification. Network operators will be integral to achieving both aims. Although operators stand to benefit from a …
Government response. The Government announced an initial £250 million of investment in research and development to drive early work on the diversification agenda. As set out in the Diversification Strategy, the early focus is to address the concentration of supply in the …
Department for Science, Innovation and Technology
17
Recommendation
Second Report: 5G market diversificatio…
The Government cannot rely solely on removing barriers to market entry to diversify the telecommunications vendor market, but must also ensure that network operators actively pursue diversification and act to maintain the diversity achieved. This will require a combination of incentives, measures to reduce operator costs, and regulatory requirements. For …
Government response. The Government announced an initial £250 million of investment in research and development to drive early work on the diversification agenda. As set out in the Diversification Strategy, the early focus is to address the concentration of supply in the …
Department for Science, Innovation and Technology
18
Recommendation
Second Report: 5G market diversificatio…
Of Ofcom’s two principal duties, it has appeared to have given less prominence to “further[ing] the interests of citizens in relation to communications matters” than it has to “further[ing] the interests of consumers”. Ofcom must ensure that it pursues both of its principal duties and guarantees the security of the …
Government response. The Government agrees that Ofcom has an important role to play in taking forward this agenda and in helping to create the right market conditions to support the process of diversification within the UK market. The Diversification Taskforce has set …
Department for Science, Innovation and Technology
19
Conclusion
Second Report: 5G market diversificatio…
The UK’s telecommunications market accounts for a small proportion of the global market. International co-ordination will therefore be critical to the success of the UK’s diversification strategy. The Government’s 5G Supply Chain Diversification Strategy acknowledges this fact, and states the Government’s ambition for international co-operation. However, the strategy provides little …
Government response. The Government agrees that there is a need for international fora to coordinate and drive international collaboration on diversifying the telecommunications equipment market. The Diversification Strategy makes clear the Government’s intention to build a global coalition consisting of a critical …
Department for Science, Innovation and Technology
20
Recommendation
Second Report: 5G market diversificatio…
The Government should seek to establish a dedicated, standing forum for international co-operation on diversifying the telecommunications market, encompassing as many like-minded countries as possible and covering aspects including: research and development; adoption and deployment; standards; and overall strategy. This should not be based on existing intelligence-sharing coalitions. The Government …
Government response. The Government agrees that there is a need for international fora to coordinate and drive international collaboration on diversifying the telecommunications equipment market. The Diversification Strategy makes clear the Government’s intention to build a global coalition consisting of a critical …
Department for Science, Innovation and Technology
21
Recommendation
Second Report: 5G market diversificatio…
There is a strong risk that the urgent security challenges faced by the UK’s telecommunications sector are indicative of a wider, and growing, geopolitical development. Throughout our inquiry, we have heard of the prospect of a growing technological and regulatory divergence between China, and countries aligned with China, and other …
Government response. ” Digital and emerging technologies are reshaping economies, transforming our daily lives and our societies. As a future frontier of the global economy, there is an imperative to promote and harness this innovation, not only to power domestic growth, but …
Department for Science, Innovation and Technology
22
Recommendation
Second Report: 5G market diversificatio…
The Government must treat the current issues in the UK’s 5G vendor market as an indication of a much wider geopolitical, technological challenge. The character of the UK’s response, and that of other like-minded nations, will have profound implications for future decades and beyond. We urge the Government to address …
Government response. ” Digital and emerging technologies are reshaping economies, transforming our daily lives and our societies. As a future frontier of the global economy, there is an imperative to promote and harness this innovation, not only to power domestic growth, but …
Department for Science, Innovation and Technology
23
Recommendation
Second Report: 5G market diversificatio…
As part of its White Paper on global technological divergence, the Government should develop a critical technologies strategy that identifies technologies that are likely to be of critical importance to the UK’s prosperity and security over the next ten to twenty years. This strategy should assess the potential opportunities and …
Government response. The Government agrees with the Committee’s analysis of the need to consider the long- term plan and implications of critical and emerging technologies. To this end, in line with the Prime Minister’s vision articulated in the Integrated Review, the UK’s …
Department for Science, Innovation and Technology
24
Conclusion
Second Report: 5G market diversificatio…
The Government has only recently considered the consolidation of vendors in the UK’s telecommunications market as a potential risk to national security, although it is a process that has taken place over ten to twenty years. One problem appears to have been the focus on the security of the network …
Government response. The Government agrees with the Committee’s analysis of the need to consider the long- term plan and implications of critical and emerging technologies. To this end, in line with the Prime Minister’s vision articulated in the Integrated Review, the UK’s …
Department for Science, Innovation and Technology
25
Recommendation
Second Report: 5G market diversificatio…
In producing a national strategy for critical and emerging technologies, the Government should consider potential risks that could develop across their full supply chains.
Government response. The Government agrees with the Committee’s analysis of the need to consider the long- term plan and implications of critical and emerging technologies. To this end, in line with the Prime Minister’s vision articulated in the Integrated Review, the UK’s …
Department for Science, Innovation and Technology
26
Conclusion
Second Report: 5G market diversificatio…
The setting of international standards is important for national economic competitivity and technical capability. The influence of British companies and officials in global standards-setting processes is diminishing. Although the ‘5G Supply Chain Diversification Strategy’ sets out the Government’s intention to redress this in the telecommunications sector, it is not clear …
Government response. The Government agrees that ensuring that the UK is engaged in shaping international digital technical standards is crucial to supporting the UK’s economic prosperity, safeguarding our national security, and protecting the UK’s norms and values now, and in the future. …
Department for Science, Innovation and Technology
27
Recommendation
Second Report: 5G market diversificatio…
In producing a national strategy for critical and emerging technologies, the Government should review the relevant global standards bodies, the objectivity of their processes and the relative influence of different countries. Similar to those measures outlined in its 5G supply chain diversification strategy, the Government should develop measures to build …
Government response. The Government agrees that ensuring that the UK is engaged in shaping international digital technical standards is crucial to supporting the UK’s economic prosperity, safeguarding our national security, and protecting the UK’s norms and values now, and in the future. …
Department for Science, Innovation and Technology
28
Conclusion
Second Report: 5G market diversificatio…
Domestic capability in the research, development and adoption of critical technologies is key not only to economic growth and technological progress, but also to national security. It reduces dependency on foreign suppliers and governments, and allows the UK greater scrutiny of technologies for potential vulnerabilities and greater influence over the …
Government response. The Government agrees with the Committee’s analysis of the need to consider the long- term plan and implications of critical and emerging technologies. To this end, in line with the Prime Minister’s vision articulated in the Integrated Review, the UK’s …
Department for Science, Innovation and Technology
29
Recommendation
Second Report: 5G market diversificatio…
In producing a national strategy for critical and emerging technologies, the Government should assess the UK’s domestic research and development capability for each technology area as well as the capability of its allies. As the Government looks 5G market diversification and wider lessons for critical and emerging technologies 53 to …
Government response. The Government agrees with the Committee’s analysis of the need to consider the long- term plan and implications of critical and emerging technologies. To this end, in line with the Prime Minister’s vision articulated in the Integrated Review, the UK’s …
Department for Science, Innovation and Technology
30
Recommendation
Second Report: 5G market diversificatio…
In producing a national strategy for critical and emerging technologies, the Government should consider the security of the universities, businesses and other institutions conducting research into these technologies. Although guidance for the sector has recently been developed, the Government should monitor its implementation and stand ready to work with institutions …
Government response. The Government takes seriously the need to protect UK academic institutions carrying out research into critical and emerging technologies. We have taken direct action to support these institutions. The Centre for Protection of National Infrastructure (CPNI) and the National Cyber …
Department for Science, Innovation and Technology