BT Group Says New UK 5G Compliance Costs Can Be Absorbed in Initial Estimates
July 14 2020 - 12:57PM
Dow Jones News
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)
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