BT.A Bt Group Plc

By Adriano Marchese

BT Group PLC said Tuesday that the costs of full compliance with removing Huawei Technologies Co. equipment from 5G communication networks in the U.K. can be absorbed in its initial estimated implementation cost.

The U.K. telecommunications company said it estimates full compliance with the revised proposals would require the removal and replacement of Huawei equipment from its existing mobile network, and exclude Huawei from the 5G network that the company continues to build.

This follows the U.K.'s Department for Digital, Cultural, Media & Sport proposal on the use of Huawei equipment in 5G and FTTP networks. The revised proposals intend to remove Huawei equipment from 5G communication networks in the country by the end of 2027, and consult on future use of the company's equipment in FTTP networks, BT Group said.

However, with clarity on the timing, the company said it is estimated these costs can be absorbed within its initial estimated implementation cost of 500 million pounds ($627.7 million).

The latter figure was announced in late January in order to comply with the previous proposal by the National Cyber Security Centre.

"Clearly this decision has logistical and cost implications for communications providers in the U.K. market--however, we believe the timescales outlined will allow us to make these changes without impacting on the coverage or resilience of our existing networks," Chief Executive Philip Jansen said.

Write to Adriano Marchese at adriano.marchese@wsj.com

(END) Dow Jones Newswires

July 14, 2020 12:42 ET (16:42 GMT)

Copyright (c) 2020 Dow Jones & Company, Inc.