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Huawei 5G ban could cost UK economy £6.8bn

Replacing 5G components could also delay the nationwide rollout by 18-24-months

Research has shown that if the UK was to ban Huawei's 5G equipment, it could cost the economy between 4.5bn and 6.8bn.

If the government decreed Huawei's tech needs to be replaced, not only will networks and other businesses using the tech have to invest in new equipment, but the labour costs to make the switch will add up significantly too.

According to the independent report conducted by analyst firm Assembly on behalf of Mobile UK "the impact on the UK of a restriction on Huawei in the telecoms supply chain" means a replacement programme could take between 18 and 24-months, delaying the launch of 5G and putting the UK far behind other economies.

This would have a huge impact on the government's plans for the UK to become a world leader in 5G.

"If any restriction were to be imposed on Huawei, many of the benefits associated with 5G leadership could be lost for good, not simply delayed as a result these include significant productivity gains that stand to benefit the UK's global economic standing," the report noted.

Because UK businesses have been able to focus on creating efficiencies in the supply chain, it has been able to save costs rolling out 5G, without losing any stability.

"The UK is currently well-placed to possibly be the first country to launch 5G at scale in the western world, with any delays resulting in the UK missing the opportunity to be the host of pioneering experimentation," the report added.

"5G is a critical enabler of digital transformation for companies and public services. A slowing down in the roll-out of 5G therefore risks hampering the country's level of competitiveness."

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