Ministers have signaled a shift in policy regarding the role of Chinese telecoms equipment maker Huawei in the UK 5G network.
UK ministers are signaling a policy switch over the country's 5G network and the role of Huawei in its development. The government will be undertaking a review into how forthcoming US sanctions on Huawei would affect the UK's use of its equipment.
Digital Secretary Oliver Dowden said: "Given that these sanctions... are extensive, it is likely to have an impact on the viability of Huawei as a provider for the 5G network."
Dowden added that he wanted Samsung and NEC to become the country's provider for 5G network kits. He pointed out that these two companies would make UK mobile networks less dependent on Ericsson and Nokia, the other two suppliers.
According to Defence Secretary Ben Wallace, the US sanctions, which will come into effect in September, had specifically been designed to force the UK to reconsider Huawei.
Wallace explained: "It is a better set of sanctions than the earlier set, and it's specifically clearly designed in a smarter way to put countries that have high-risk vendors - specifically Huawei - under greater pressure."
The US sanctions
Under the sanctions, Huawei and the third parties that manufacture its chips are prohibited from using "US technology and software to design and manufacture" its products.
As a result, the Chinese telecoms firm could lose access to software it relies on to design and test its processors, as well as well as the ability to produce its most advanced chips.
The US government has cited national security concerns as the basis for the sanctions. US officials have been suggesting that the Chinese government might use Huawei to spy on or even sabotage communications.
On Tuesday, the Federal Communications Commission designated Huawei a national security risk, blocking local telecom companies from using the agency's funds to purchase equipment from the Chinese firm.
Huawei's response
The company denies claims that it would assist the Chinese government compromise its clients or otherwise deliberately harm them.
Huawei's UK chief Victor Zhang argued: "We are investing billions to make the Prime Minister's vision of a 'connected Kingdom' a reality so that British families and businesses have access to fast, reliable mobile and broadband networks wherever they live."
"We have been in the UK for 20 years and remain focused on working with our customers and the government," Zhang added.
Dowden pointed out that the UK government already plans to remove Huawei from the UK network "over time".
The plans announced in January stated that they are limited to excluding Huawei from the most sensitive parts of the network or core and capping the company's market share of base stations and other equipment at the "edge" to 35% by 2023.
The digital secretary claims that these plans might now change.
He explained: "We won't hesitate in taking decisions that will impose additional costs on mobile network operators, the primary consideration is national security."
Dowden said he was reluctant about providing further information as final "decisions haven't been made" and "any changes in policy would be exceedingly market sensitive".
