Vodafone commits to Huawei amid falling annual sales

Tuesday, 21 May, 2019

Vodafone has defied the calls for bans on using Huawei equipment when the telecoms giant announced it would go ahead with plans to employ Huawei technology in non-core parts of its network. The company said they would be launching its 5G network in seven cities on 3 July.

Vodafone is the first UK telecoms company to make such a public commitment to Huawei and the decision is line with the government security decision, leaked to the public, that it would allow Huawei into the UK’s non-core areas. But, of course, Vodafone flies in the face of the US calls for global bans alleging Huawei equipment is used for spying by the Chinese authorities.

The firm has in the past warned against banning Huawei believing it would delay any rollout of the new network and putting the UK behind its competitors. And while the government has not so far issued a formal verdict Vodafone, it seems are confident the UK will not instigate a total ban on Huawei, which contributed £1.7 billion to the UK economy last year.

Vodafone currently uses Huawei equipment in core parts of its European network. But has said they would pause the installation of new products in the light of the controversy.

We are grateful to operators and consumers in the UK for their confidence in our products and services. We believe that as long as the UK continues to be the open and fair economy it is known to be, we will create greater value together with our partners here.

- Dr Liang Hua: Chairman, Huawei

Vodafone’s announcement comes at the same time as the company reported a 6.2% fall in sales for the full year. As a consequence, shareholders found the value of their shares falling 40% as the telecoms giant slashed dividend pay-outs to bolster its balance sheet.

It was reported that there had been revenue falls in both mobile and fixed service divisions. Increased competition from lower cost rivals, particularly in Spain and Italy were also partly to blame.

Vodafone are also looking to save money after paying out €18.4 billion for Liberty Global’s German and east European cable business. Since the acquisition, Vodafone has sold parts of its non-core businesses, including in India and New Zealand.

Tim Bamford author picture

By:

Tim is a veteran freelance journalist writing extensively on internet news and cybersecurity.

News What's the story?

Keep up with the latest developments in UK broadband.

Why is the UK worried about Huawei and what does this mean for 5G?

The Huawei controversy continues as Boris Johnson says we ‘will not risk British security”.

Why is the UK worried about Huawei and what does this mean for 5G?Why is the UK worried about Huawei and what does this mean for 5G? Read more

Unmissable streaming TV shows for 2020

Telly has moved online - let's dive in to the most bingeworthy releases due this year!

Read more

The most complained about home broadband services

Who's failing to live up to expectations?

Read more

Brits spend up to 4.9 hours surfing the web at work!

Read more

Help Learn with us

Make the most of the internet with our broadband library.

What are the differences between HD, UHD, 4K and 8K?

What are the differences between HD, UHD, 4K and 8K?What are the differences between HD, UHD, 4K and 8K? Read more

How far can augmented reality take us?

Read more

Keeping the Internet of Things secure

Read more

The best broadband routers for 2020

Read more