LONDON: The move to limit Chinese telecom giant Huawei in the fifth-generation (5G) network rollouts would delay access to the newer technology, with a significant cost impact on telecom infrastructure worldwide, a recent finding said.
“The increase in investment costs linked to the restriction of 5G competition would also delay 5G access to millions of people over the next decade,” said a study published by the UK-based Oxford Economics.
Over the last few months, network gear maker Huawei has been at the centre of controversy following the politically-motivated debate over backdoor concerns despite no substantial evidence.
The United States has been advising countries to restrict Chinese gear maker which, according to the new finding could increase the cost of infrastructure deployment by countries since Huawei maintains leadership in the next generation of technology.
Australia, New Zealand, Japan, and the US which have restricted fair competition are likely to be hit by network cost escalation due to expected monopoly by European vendors— Ericsson and Nokia— which too have a lesser number of patents than their Chinese rival.
“In the US, this translates to an average increase in investment costs of almost $1 billion per year over the next decade, under our central cost scenario,” the study said.
However, the finding added that restricting a key supplier of 5G infrastructure from helping to build a country’s network would increase that country’s 5G investment costs by between 8% and 29% over the next decade.
With the US-fuelled concerns putting the world into a dilemma, Huawei’s inclusion in the 5G telecom networks is expected to be limited. The politically-influenced decisions worldwide, according to the study, would lead to an adoption by a lesser number of people than anticipated by 2023.
Meanwhile, the UK Prime Minister Boris Johnson is expected to allow Huawei’s 5G gear into country’s networks following clearance from state-led security agency.
Former national security adviser Sir Mark Lyall Grant said that the security services had already concluded that they were able to ease any potential threats posed by the Chinese-origin technology.
Defying the US, the European Union (EU) in a clear indication said that it would not ban any technology company in the wake of heightened security-related concerns.
No companies will be explicitly excluded in the EU’s recommendations, European Digital Commissioner Thierry Breton, addressing the press on Monday said.
India, despite friendly relations with the US too has recently acted against its advisory, and gave its permission to Huawei and another Chinse gear company ZTE to conduct 5G pilots with telecom carriers.