Huawei’s 5G ban will hit the UK economy by 18.2 billion pounds
A report commissioned by Huawei found that due to the order to remove Huawei equipment from the 5G network by 2027, the UK economy is expected to be hit by as much as 18.2 billion pounds (about 161.4 billion yuan), and this move may also lead to deployment Further postponed.
This report, released by the market research company Assembly, investigated the consequences of the British government’s plan to ban the purchase of Huawei 5G equipment from the end of this year and require operators to remove existing Huawei 5G equipment from their networks by 2027.
The British government has previously stated that this move is expected to delay the deployment of 5G by up to three years, which is caused by strict restrictions imposed by the United States on the supplier .
Assembly stated that it referred to the government’s estimates and made a judgment on this basis, and found that removing Huawei’s equipment before 2027 would “cause further delays in deployment and bring higher costs to the UK economy and operators.”
The company added that in the past 12 months, UK operators have made significant progress in deploying 5G, putting the UK in a good position to obtain future economic benefits.
However, it expects that the deployment speed will slow down in the future, which will affect the country’s global competitiveness and the related economic benefits of becoming a 5G leader.
How was the figure of 18.2 billion pounds calculated? Assembly is broken down. First, the expected three-year delay will result in a total loss of approximately £10 billion in productivity benefits.
In addition, compared with the situation where the UK has become a global leader in 5G, the mobile industry will now miss about 4.7 billion pounds in revenue generation opportunities, while related industries will lose about 2 billion pounds.
The overall economy will lose approximately £1.5 billion in gains.
Assembly chief analyst and founder Matthew Howett (Matthew Howett) said that the result of further restrictions on Huawei will cause British operators to suffer billions of dollars in losses.
“This report reiterated the immeasurable economic cost and the impact on productivity that the delay of 5G deployment will produce. Given the current economic environment, the UK will not be able to afford such a large scale.” He said.