Huawei has commissioned multiple reports from Oxford Economics, a global forecasting specialist, all of which claim that banning Huawei will consequently cost countries billions. The reports have come in just as the UK is poised to make a decision on the Chinese tech firm’s involvement in its 5G networks.
The Oxford Economics report on Australia found that if the country banned Huawei, 5G access would be delayed with up to 3.1 million more Australians lacking 5G access by 2023. Furthermore, preventing Huawei from competing would increase average investment costs by up to $300 million per year.
“Lower economic growth due to delays in 5G rollout and the associated slower technological growth reduces GDP by between US$0.8 billion and US$8.2 billion in 2035,” the report said.
Bans will cost billions
Huawei was banned from supplying 5G equipment to Australia in August 2018 due to the national security concerns.
Oxford Economics also carried out a report on India, as requested by Huawei. The Indian report found that blocking Huawei from its 5G networks would cost the country at least $4.7 billion by 2035. India has allowed Huawei to be involved in 5G trials but the government hasn’t announced a final decision on Huawei.
Oxford Economics also stated that restricting competition in the network infrastructure market may significantly reduce economic growth in India over the next 15 years.
"We estimate this could reduce GDP in 2035 by $15.5 billion," the report said.
Oxford Economics said that in medium infrastructure cost scenario restriction on Huawei could increase the cost of building the 5G network by $500 million per year over the next decade.
The report also has a section on the UK, saying that the country would lose up to $11.8 billion in lost growth over the next 15 years if Huawei was blocked.
As the end of the month draws ever closer, we expect to hear the UK’s final decision on Huawei soon.