BT and Vodafone to lobby PM in support of Huawei

Britain's two biggest telecoms companies are preparing to lobby Boris Johnson in support of Huawei's involvement in the UK's 5G communications network.

Sky News has learnt that Vodafone and BT Group are drafting a letter to be sent to the prime minister within days that will reiterate their view that the growth of Britain's digital economy risks being stunted if the Chinese equipment manufacturer is banned.

Telecoms industry sources said that Philip Jansen, BT chief executive, and Nick Read, who runs Vodafone, were contemplating writing to Mr Johnson during the early part of next week.

One source familiar with its prospective content said it would emphasise the priority which both companies placed on the security of their networks, while arguing that they had seen no evidence that would justify an outright ban on Huawei.

The potential intervention of two of the most powerful executives in corporate Britain in support of the Chinese company will not by itself decisively affect the government's decision.

However, industry insiders said it illustrated the concerns of big network providers about the impact of a prohibition against Huawei.

BT and Vodafone are crucial in that context because they are the largest communications suppliers to the public sector, government and critical national infrastructure.

Downing Street is being forced to walk a diplomatic tightrope over the issue, having been lobbied intensively by the Trump administration to block Huawei from the 5G network.

A meeting was reportedly held in London on Monday between British and American security officials at which Washington's view that it would be "nothing short of madness" to allow Huawei's involvement was expressed.

The Daily Telegraph reported this week that President Trump was planning to lobby Mr Johnson directly on the issue before a decision is reached in Whitehall.

The UK security services believe that any security threat from Huawei can be contained by using the company's equipment only at the periphery of the 5G network, rather than at its core.

Beijing is also closely scrutinising the impending verdict from Mr Johnson's government, amid expectations that Anglo-Chinese trade relations will be cast into the deep freeze if Huawei is banned.

The long-running controversy over Huawei stems from its purported links to the Chinese government and its military - which the company has always denied.

Industry executives believe that a decision could be announced by Mr Johnson as soon as next week.

If BT and Vodafone decide to proceed with their joint letter to the PM, it is likely to reflect a widely held industry view that a choice of equipment vendors is required to improve competition in the sector.

Ericsson, the Swedish company, and Finland's Nokia are the two other major players in the industry.

The draft of the letter from Mr Jansen and Mr Read is also understood to refer to the extensive collaboration between the two companies and the National Cyber Security Centre and their ability to manage security risks.

It is also said to call for an evidence-based decision - which Mr Read said publicly at last year's Mobile World Congress conference.

Details of the prospective letter from BT and Vodafone has emerged the day after talks - attended by Mr Jansen - between telecoms executives and Mr Johnson aimed at delivering a roadmap for full-fibre broadband to be connected to every home in Britain by 2025.

Industry bosses believe that that objective could be delayed by five years or more if Huawei equipment has to be stripped out of existing networks and is banned from the UK's 5G infrastructure.

Huawei said: "We strongly agree with the prime minister that 'the British public deserve to have access to the best possible technology'."

It said it had invested more than $15bn in research and development last year, and added that it looked forward to "supplying the best technologies that help companies like BT and Vodafone fulfil the government's commitment to make gigabit broadband available to all".

"We are confident that the UK government will make a decision based upon evidence, as opposed to unsubstantiated allegations," the spokesman added.

"Two UK parliamentary committees concluded there is no technical reason to ban us from supplying 5G equipment and this week the head of MI5 said, there is 'no reason to think' the UK's intelligence-sharing relationship with the US would be harmed if Britain continued to use Huawei technology."

BT and Vodafone declined to comment on Friday.

A Downing Street spokesman said the government was "continuing to consider our position on this and will make a decision in due course".