Source · Select Committees · Defence Committee
Recommendation 3
3
Paragraph: 33
It is clear that the UK vendor market for 5G kit is not diverse enough.
Conclusion
It is clear that the UK vendor market for 5G kit is not diverse enough. Even with the inclusion of Huawei the market was “sub-optimal” and the Government’s decision to remove Huawei completely from 5G by 2027 poses a risk that could potentially result in an even less diverse market, which could bring security and resilience concerns of its own.
Paragraph Reference:
33
Government Response
Accepted
HM Government
Accepted
The Government agrees that the UK vendor market is not diverse enough, as highlighted in the Telecoms Supply Chain Review. The Review outlines the need for further diversification in the supply market for access network equipment, in order to reduce the risk of national dependency on a small number of suppliers. While the advice to remove Huawei equipment from the 5G supply chain is the right one, it will result in greater reliance on Nokia and Ericsson equipment. The Government does not believe that this is a satisfactory position in terms of the resilience of supply for an important part of our Critical National Infrastructure. A more diverse supply chain is absolutely essential to reducing national dependency on any individual supplier as well as driving more competition and innovation in the telecoms supply market. This is why the UK Government has published a multifaceted 5G Supply Chain Diversification Strategy to address this need. This strategy balances rapid measures to maintain the resilience of our networks in the short-term, with bold and ambitious interventions to open up and grow the market in the medium to longer term. The strategy also focuses on building UK capability across the supply chain. We want to make the most of the UK’s vibrant and innovative telecoms sector and to work with industry to test, develop and deploy new and emerging technical solutions. The 5G Supply Chain Diversification Strategy was published on 30 November.