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Telecommunications (Security) Bill - Sitting 4

19 January 2021

Proposing MP
Birmingham, Selly Oak
Type
Public Bill Committee

At a Glance

Issue Summary

The witnesses discuss the security risks associated with the deployment of 5G networks. The discussion revolves around the security audits of telecommunications networks and the challenges in identifying outdated or insecure equipment within these complex systems. Steve McCabe addresses the issue of diversifying telecommunications suppliers following the removal of Huawei from UK networks. The statement discusses support for aspects of the Telecommunications (Security) Bill, particularly emphasizing the importance of holding telecoms providers accountable for security on their systems. The statement addresses the continuation of the committee session regarding the Telecommunications (Security) Bill, focusing on evidence given by Helen Duncan and Mike Fake. MPs discuss the opportunities and challenges for British firms in the telecommunications sector under the Telecommunications (Security) Bill. The statement discusses the challenges and opportunities in diversifying the UK's telecommunications sector to ensure security and resilience of its network. Steve McCabe discusses the importance of open standards and collaboration within the telecommunications industry to enhance security and innovation. Steve McCabe discusses the impact of private investment in hardware technology and the effectiveness of current government initiatives. The session discusses the Telecommunications (Security) Bill and its implications for cyber-security and diversification strategy. The statement discusses the risks and potential international cooperation regarding restrictions on semiconductor supply to Chinese companies like Huawei. Steve McCabe discusses the need for diversification and entry of US-UK equipment suppliers in telecommunications. Steve McCabe is closing the final evidence session for the Telecommunications (Security) Bill.

Action Requested

No specific action is requested. The discussion highlights the need for addressing security concerns in the supply chain, encryption, and vulnerabilities related to IoT devices and network architecture.

Key Facts

  • Dr Andy G. Sellars is the strategic development director at the Compound Semiconductor Applications Catapult.
  • Heba Bevan OBE is the CEO and founder of Utterberry Ltd., focusing on AI and wireless sensor networks for major infrastructure projects.
  • Dr Nick Johnson was formerly chief technical officer at ip.access, a UK-based small cell vendor now part of Mavenir.
  • GSM has no clear shelf-life as it remains critical for emergency calls and remote locations.
  • Security audits are conducted when new equipment is deployed into networks.
  • SolarWinds software supply chain incident highlights undetectable Trojan horse type of threats.
  • Software updates often compete with revenue-generating features in vendor businesses.
  • Hardware capacity limits can impact the integration of newer services like 5G over existing infrastructure.
  • Three monolithic telecom suppliers currently exist, with numbers declining.
  • The UK has approximately 5,000 companies involved in designing and manufacturing electronic systems, including 600 in telecoms.
  • A timeframe of three to five years is suggested for broader diversification efforts.
  • Steve McCabe addresses support for parts of the Telecommunications (Security) Bill.
  • Heba Bevan emphasizes the importance of telecom providers being liable for security on their systems.
  • Chi Onwurah asks about UK capabilities in hardware and software manufacturing for telecommunications, referencing small-cell base station manufacturers around Bath and Bristol.
  • Steve McCabe is chairing the committee session.
  • Helen Duncan is a consultant and freelance journalist specialising in RF technology and wireless sector.
  • Mike Fake is director and co-founder of Lumenisity, which has developed a new fibre optic cable technology that data travels faster on compared to conventional cables.
  • £250 million allocated for research and development.
  • BT invests £500 million per annum in R&D.
  • Huawei's annual revenue is approximately $120 billion with an estimated R&D spend of $2 billion annually.
  • Three incumbent base station manufacturing companies in the UK closed or ceased operations in the late 1990s due to mergers and acquisitions, dotcom bubble impacts, and defense sector funding removal.
  • The £250 million diversification strategy is not considered sufficient to support semiconductor manufacture in the UK.
  • Supporting component and subsystem manufacture based around chips would improve resilience.
  • McCabe mentions the Government's spending on 5G networking run by Cambridge Wireless.
  • The Northern Ireland Engineering Hub for the Royal Academy of Engineering was launched in Belfast.
  • Antenna capability has been reduced due to recent company closures, highlighting a potential area for government intervention.
  • Government proposes £250 million for research and development over five years.
  • BT spends £500 million annually on its network infrastructure.
  • There is a gap in investment from seed stage to series B, particularly affecting smaller companies.
  • Doug Brake from Information Technology and Innovation Foundation testified.
  • The Bill aims to make it easy and desirable for the private sector to do cyber-security well.
  • There are concerns over increased compliance costs associated with the Bill.
  • The statement expresses concern over China's efforts to create an indigenous semiconductor industry.
  • Doug Brake worries about ORAN being seen as a quick fix for existing equipment providers rather than a long-term solution.
  • There is a suggestion that international cooperation and early-stage investments are needed to drive future technology transitions.
  • The decline of Lucent is attributed to unique challenges imposed by the Anglo-American economic system, systemic failures in US Government policy, and aggressive foreign industrial policies.
  • Bell Labs had a strong position before its restructuring in 1984 due to steady revenue from telecom rates and a focus on broad technological change.
  • There are risks associated with bandwagoning and scaling open RAN systems at scale.
  • Final evidence session for the Bill.
  • Next meeting is on Thursday 20 January at 11:30 am in Committee Room 14.
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