Chinese multinational technology company Huawei will in the next five years see Vodafone taking out its equipment from the sensitive, core parts of its mobile networks across Europe at a cost of €200m (£169m).
Vodafone which has 111 million customers across Europe, has taken this decision after the UK government’s move last week to limit the use of Huawei equipment in the country’s 5G network.
Huawei is reported to have said that this would not cause a much of a financial loss to their firm as they comply with the current laws of UK’s network equipment placements but will rather delay the roll out of their 5G in the UK by about 2 to 5 years.
And if other European countries follow suit on the 35% Cap on Huawei on their network operations, it could have a detrimental effect on their operations.
Nicky Morgan, the culture secretary, said Britain could work with its allies to introduce another equipment provider to the UK market. With Huawei locked out of the core of 5G networks, and a cap on involvement in non-core systems, operators are left with just two large alternative suppliers in Nokia and Ericsson.