Source · Select Committees · Science, Innovation and Technology Committee
Second Report: 5G market diversification and wider lessons for critical and emerging technologies
Science, Innovation and Technology Committee
HC 450
Published 4 February 2021
Government response
Fifth Special Report - 5G market diversification and wider lessons for critical and emerging technologies: Government Response to the Committee’s Second Report of 2019-21 · published 29 Apr 2021
Recommendations & Conclusions
1
Recommendation
Accepted
Para 14
The Government’s ‘5G Supply Chain Diversification Strategy’ provides an overview of the Government’s intentions for...
Recommendation
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 …
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Government Response Summary
The government agrees with the urgency of diversification and commits to responding to the Diversification Taskforce report before summer recess. This response will detail the implementation strategy, including specific deliverables, milestones, and the approach to future R&D investment.
Department for Science, Innovation and Technology
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4
Conclusion
Accepted
Para 29
The Government is right to support the development and adoption of open standards and increased...
Conclusion
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 …
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Government Response Summary
The government reinforces its commitment to Open RAN and open standards, citing an initial £250 million investment for R&D. It also details ongoing efforts to ensure UK market interests are represented at global technical standards bodies to support interoperability and security.
Department for Science, Innovation and Technology
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5
Recommendation
Accepted
Para 30
The Government should support Open RAN and other efforts to drive the adoption of open...
Recommendation
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 …
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Government Response Summary
The government accepts the recommendation, highlighting that its Diversification Strategy already supports Open RAN and similar technologies. It has committed an initial £250 million investment for R&D in open technologies and will ensure UK market interests are represented at global technical standards bodies.
Department for Science, Innovation and Technology
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7
Recommendation
Accepted
Para 36
We heard evidence during our inquiry supporting the Government’s assessment that network operators’ preference for...
Recommendation
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 …
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Government Response Summary
The government confirms that the UK Telecommunications Laboratory is being established as a key element of its R&D approach, with work progressing rapidly and extensive industry consultation underway. The Lab will enable new suppliers to demonstrate product performance and security, ensuring trust in validated equipment for network integration.
Department for Science, Innovation and Technology
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8
Conclusion
Accepted
Para 43
Measures to support research and development form a major part of the Government’s ‘5G Supply...
Conclusion
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 …
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Government Response Summary
The government clarifies that its initial £250 million investment in R&D aims to supplement existing investment and agrees with the committee on the criticality of coordinating R&D across academic and commercial activities. It commits to setting out a clear, long-term vision and developing a coordinated and strategic approach to research, development, and innovation.
Department for Science, Innovation and Technology
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9
Recommendation
Accepted
Para 44
The collaborative research and development networks that the Government seeks to develop to support diversification...
Recommendation
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 …
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Government Response Summary
The government agrees with the need for coordinated R&D and states it has invested £250 million. It commits to setting out a clear, long-term vision, detailing further steps before summer recess, and developing a coordinated, strategic approach to strengthen UK capability in telecoms R&D.
Department for Science, Innovation and Technology
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13
Conclusion
Accepted
Para 56
New vendors of 5G telecommunications equipment face challenges in scaling up their production rapidly enough...
Conclusion
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 …
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Government Response Summary
The government acknowledges the importance of scale for new suppliers and states it is actively pursuing opportunities within its 5G Testbeds and Trials programme to prioritise open-interface technologies and new market entrants. It is also considering opportunities in mobile private networks to support vendor diversification.
Department for Science, Innovation and Technology
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14
Recommendation
Accepted
Para 57
The Government should align its strategy for diversifying the 5G vendor market with its support...
Recommendation
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, …
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Government Response Summary
The government is actively facilitating 5G deployment and pursuing opportunities within its funded programmes, such as 5G Testbeds and Trials, to prioritise open-interface technologies and new suppliers. It is also looking at mobile private networks to support new market entrants and scale, thus aligning diversification with 5G rollout.
Department for Science, Innovation and Technology
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18
Recommendation
Accepted
Para 74
Of Ofcom’s two principal duties, it has appeared to have given less prominence to “further[ing]...
Recommendation
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 …
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Government Response Summary
The government agrees with the importance of Ofcom's role in security, noting that new powers under the Telecommunications (Security) Bill will expand Ofcom's responsibilities. It is also considering updating the Statement of Strategic Priorities to emphasize telecommunications security.
Department for Science, Innovation and Technology
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19
Conclusion
Accepted
Para 79
The UK’s telecommunications market accounts for a small proportion of the global market.
Conclusion
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 …
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Government Response Summary
The government agrees on the critical need for international coordination and is committed to building a global coalition for telecoms diversification. It has made this a priority for the UK's G7 presidency and is proactively engaging with international partners bilaterally to identify opportunities for collaboration.
Department for Science, Innovation and Technology
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26
Conclusion
Accepted
Para 99
The setting of international standards is important for national economic competitivity and technical capability.
Conclusion
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 …
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Government Response Summary
The government agrees on the importance of shaping international digital standards and clarifies that DCMS is actively engaging across various digital technical standards, including Internet, AI, and smart cities. It cites the development of EN 303 645 and efforts under the G7 presidency as examples of its broader engagement.
Department for Science, Innovation and Technology
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30
Recommendation
Accepted
In producing a national strategy for critical and emerging technologies, the Government should consider the...
Recommendation
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 …
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Government Response Summary
The government takes seriously the need to protect academic institutions and has implemented multiple measures, including publishing Trusted Research guidance, expanding the Academic Technology Approval Scheme (ATAS), launching a Digital and Tech China Strategic Communications Campaign, and enacting the National Security and Investment Bill to scrutinise investments.
Department for Science, Innovation and Technology
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