Huawei is set to be excluded from British 5G networks by 2027 due to security concerns, leaving phone carriers reliant on a supply duopoly of Finland’s Nokia Oyj and Sweden’s Ericsson AB.
Around 50 million pounds of the total will be spent next year to help build “a secure and resilient 5G network” according to documents published Wednesday as part of Chancellor of the Exchequer Rishi Sunak’s spending review.
The resulting reduction in competition could hurt security and push up prices, so the UK Digital Secretary Oliver Dowden has started a task force to increase the number of suppliers. He’s set to publish more details before the end of the year.
Britain’s crackdown on Huawei came in July after U.K. officials said U.S. sanctions made it impossible to verify the security of Huawei’s supply chain. The White House accuses Huawei of being a security risk, which the company has always denied.