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1/30/2020, 9:17 AM (Source: TeleTrader)
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BT says Huawei regulation will cost it £500M

BT announced on Thursday that the United Kingdom's decision to limit Huawei's 5G networks in the country will cost it £500 million by 2025. The company's shares dropped 3.62% at 9:04 am CET.

The decision means that BT will have to find new suppliers to meet the new cap on Huawei and it is likely to be more affected than any other UK telecommunications company since over 60% of its current 4G network uses Huawei's technology. EE and Openreach, both owned by BT, will most likely now turn to European suppliers such as Nokia or Ericsson. However, the company stressed that it values security and understands the UK government's decision to limit Huawei's impact of UK's 5G environment.

Earlier in the week, Downing Street announced that it would not ban Huawei from the UK, as the United States had demanded, but said it would limit "high-risk vendors" to 35% of the total 5G network in the country.

Breaking the News / VP