Telecom operators in the UK could now face severe fines after a new law was announced by the Parliament earlier this week. Under the new law, telecos could be fined 10 percent of their revenues for using telecommunications equipment from Huawei.

Huawei Logo MWC 2019

The new proposed Telecommunications Security Bill was designed to improve the security in the country’s 5G networking and full fiber infrastructure. As per a CNBC report, the new bill will have telecom carriers ensure that the equipment and software being used at their mast sites and telephone exchanges will have to meet a certain standard. According to the UK Department of Culture, Media, and Sport, “This will be a significant step to protect the U.K. from hostile cyber activity by state actors or criminals. Over the past two years the government has attributed a range of cyber attacks to Russia and China, as well as North Korea and Iranian actors.”

If the bill is approved, the government will be able plan fines on telecom operators that can have them pay 10 percent of turnover or 100,000 Pounds (roughly 133,000 US Dollars) a day if they fail to comply with the new regulations. Digital Secretary Oliver Dowden further added that the bill “will give the U.K. one of the toughest telecoms security regimes in the world and allow us to take the action necessary to protect our networks.”

Huawei

In other words, the bill would also give the government the power to fine any operator found using equipment from blacklisted firms like Huawei in the nation’s 5G infrastructure. Just earlier this year, the UK government stated that carriers would no longer be able to buy telecommunication equipment from Chinese firms by the end of 2020, and will have to replace any existing technology by 2027. Although, a stricter law is also being considered that would force carriers to ban installation of Huawei 5G equipment by 2021.