Despite pressure from US companies and the government, the UK has given Huawei (SHE:002502) the green light to access much of its incoming 5G network.
A notable caveat of the deal is that Huawei can use its own infrastructure and equipment in all “non-core” areas of the system. base stations, antennas, etc. In practice, this means losing access to the “brain” of the network. The core is where all the data is routed through subnetworks and computer servers to reach its required destination.
It is confined to the periphery, the so-called “innovative but stupid” part of the system: the random access network. By itself, it does not give users any authority over data management and direction. But the company’s new traffic management software allows users like Huawei to handle much higher volumes of traffic than before without having to apply for planning permission for 5G masts or pay to install new core infrastructure. It means that you can manage.
At least in theory, the deal could not only allow Huawei to roll out 5G faster than other companies, but also allow the UK government to mitigate some of the risks of Chinese involvement in critical technology infrastructure. Become.
Additional conditions include that Huawei can only occupy up to 35% of its kit at the network perimeter and is excluded from providing services near sensitive areas such as military bases and nuclear facilities.
Huawei and the US problem
The move likely follows comments from the US Secretary of State, who said the device increases the risk of espionage and added that it would “prevent us from sharing information” with countries that have the device in their “critical information systems.” It seems that it was .
In a speech in the Commons, British Foreign Secretary Dominic Raab insisted the decision would not affect Britain’s intelligence-sharing relationship with any of its allies.
“Nothing in this review will affect this country’s ability to share sensitive intelligence data across highly secure networks both within the UK and with our partners, including the Five Eyes.”
Nicky Morgan, Secretary for Digital, Culture, Media and Sport, added:
“This is a uniquely British solution for uniquely British reasons, and this decision addresses the challenges we currently face.”
“This not only paves the way for a secure and resilient network where data sovereignty is protected, but also builds on our strategy to develop a diverse supplier base.”
Under the new policy, the National Cyber Security Center has published a document giving UK networks three years to comply with new terms of use for Huawei equipment.
Victor Chan, head of the company’s UK division, subsequently issued the following statement:
“Huawei is reassured by the UK government’s confirmation that we can continue to work with our customers to get 5G rollout on track.”
“This will give the UK access to world-leading technology and ensure a competitive market.”
Are all issues resolved?
The UK’s approach represents a middle ground between the lax approach normally taken against foreign influence over strategically important infrastructure and the US and Australian stances to shut out that kind of external involvement. It looks like something like that.
While persistent criticism of the new 5G policy may limit Huawei’s and, by extension, the Chinese state’s position on the UK’s technological chessboard to some extent, the capabilities of the new infrastructure suggest that traditional boundaries and network structures are changing. It means.
In particular, President Trump’s cybersecurity chiefs have argued that over time, the “edge” (the boundary between core and peripheral kit) will be I am concerned that it will continue to be eroded. The problem here is that sensitive operations will be performed closer to the users, making it a more difficult task to keep everyone away from the most sensitive components of the system. .
In response to these concerns, UK network operators said they could design the architecture of their networks to distinguish them from surrounding networks, but the argument that more services would become decentralized over time I admitted it.
Before the Chinese New Year close, Huawei’s stock price fell by 0.99% to RMB2.99 at 16:29 GMT on 23/01/19.