Change will take 5 years, says Huawei

Company logo at the office of Huawei in Beijing. Thomas Peter Reuters  File

Company logo at the office of Huawei in Beijing. Thomas Peter Reuters File

Huawei has earmarked $2 billion to address security concerns raised by the organisation that monitors the use of the company's kit in the UK's network infrastructure but has said the process could take up to five years.

'Enhancing our software engineering capabilities is like replacing components on a high-speed train in motion.

"It is a complicated and involved process, and will take at least three to five years to see tangible results". We hope the UK Government can understand this'.

Ding reportedly added that Huawei "has never and will never" use its equipment for Chinese state espionage.

But dumping the telecom company comes at a cost as experts say Huawei is between six months and one year ahead of rivals in terms of the quality of 5G equipment.

The oversight board identified "technical issues" in Huawei's engineering processes, which it said could cause "new risks in the United Kingdom telecommunications networks".

Deutsche Telekom, in an internal document obtained by Bloomberg, warned that Europe could fall behind China and the United States by as much as two years if it forgoes using Huawei's 5G equipment.

The oversight board additionally pointed out medium-term concerns for incoming technologies, including software-defined networking, network virtualisation, edge computing, and 5G.

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Huawei, the global networks market leader with annual sales exceeding $100 billion, faces worldwide scrutiny over its ties with the Chinese government and suspicion Beijing could use its technology for spying.

Italy's industry minister on Thursday denied a report that Italy would ban Huawei and ZTE Corp from playing a role in building its 5G network.

"National security is a priority and if any critical issues emerged - which to date have not - the ministry would assess whether or not to take measures".

It comes amid growing worldwide concerns over Huawei, after the US, Australia and other western governments effectively barred the company from participating in the roll-out of next generation 5G telecom equipment.

Huawei has been under great scrutiny in recent times, but remember that ZTE was also heavily put under the microscope not long before.

A hot potato: China is able to pump out mass quantities of affordable tech products, but cellular networking equipment produced by Chinese companies is on the brink of a total ban from the United States according to administration insiders.

"We are always willing to accept the supervision and suggestions of all European governments, customers, and partners".

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