Huawei has reportedly decided to wind up sales of networking switches, servers, and storage gear in the UK, but not before slamming the UK’s decision to ban its participation in 5G networks.
The decision to wind up sales of hardware products in the UK is reportedly a result of strict U.S. sanctions as well as the UK’s decision to ban and remove Huawei from the country’s 5G networks by 2027.
While the company has not named which products it has decided to remove from its Enterprise Business, the Register learned that the discontinued products include all networking switches, servers, and storage gear that are critical for any 5G network.
Huawei has, however, decided to continue selling solar-related products and UPS that are part of the Digital Energy unit of the company’s Enterprise business. The Chinese telecommunications equipment supplier has also promised it will “continue to provide full service and maintenance to existing customers for the life-cycle of our products.”
“Our Enterprise Business is to focus its operations in the UK to deliver fewer products in a better way. Unfortunately, this means a number of roles are no longer required, however, we hope to reposition colleagues who are affected elsewhere within the businesses,” a Huawei spokesperson told The Register.
Huawei says banning it will make the UK lose its global leadership in 5G
Earlier today, Huawei also cited a report to slam the government’s decision to ban and remove it from the UK’s 5G networks by 2027, stating that the ban will impose a cost of £18.2 billion on the UK economy and will significantly impact the UK’s current competitive advantage in 5G leadership.
The company said the decision to ban its participation in 5G rollout plans would lead to a further delay to roll-out and higher cost to the UK economy and will impact industrial efficiency, global competitiveness, and the associated economic benefits of being a global leader in 5G.
Citing a study it commissioned recently, Victor Zhang, Vice President of Huawei, said the research “shows how the US administration has directly impacted Britain’s economy, ending the UK’s leadership in 5G, holding the country back from realising its full potential for years to come.
“Our priority at Huawei remains to support our customers in delivering and helping to build a better connected UK. This independent research shows why we would urge the government to reconsider its decision,” he added.
“The report highlights the DCMS’ conclusion that should the UK not maintain global leadership in 5G, it will miss the opportunity to fully realise £173bn of incremental GDP over 10 years between 2020 and 2030. Global leadership is important so that UK can take early advantage of the potential for 5G to create new opportunities for UK businesses at home and encourage inward investment – both of which contribute to the creation of a world-leading digital economy.
“Of the £18.2bn economic impact, a result of the 3-year delay, about £10bn of productivity benefits would be lost entirely. Under a scenario where the UK is a global 5G leader, the mobile sector would miss out on the opportunity to generate about £4.7bn and related industries would lose about £2bn. The economy at large would miss benefits estimated at around £1.5bn,” the report read.