Draft Electronic Communications (Networks and Services) (Designated Vendor Directions) (Penalties) Order 2025

Ben Spencer Excerpts

Wednesday 19th March 2025 General Committees

[Dr Ben Spencer (Runnymede and Weybridge) (Con)]

It is a pleasure to serve under your chairmanship, Sir Jeremy.

The draft Electronic Communications (Network and Services) (Designated Vendor Directions) (Penalties) Order 2025 provides for the calculation of a penalty relating to a designated vendor direction. A designated vendor direction is a power provided for by section 105Z1 of the Communications Act 2003, as inserted through the Telecommunications (Security) Act 2021. That power is intended to ensure that our critical telecoms networks are secure and protected from foreign state interference. We support the measures being taken forward today through this technical statutory instrument.

In 2022, a designated vendor direction was sent to 35 telecommunications companies to ban the installation of Huawei kit from new 5G installations; remove it from the network core by the end of 2023; remove it from 5G networks entirely by the end of 2027; limit it to 35% of the full-fibre access network by the end of October 2023; and remove it from sites significant to national security by 28 January 2023. Will the Minister update the Committee as to the progress on each of the four latter criteria for each of the 35 providers that received the notice?

I understand that BT did not meet some of those statutory deadlines. Does the Minister expect it to be fined and, if so, when and how much? Does he expect other companies to be enforced against? What work is he doing to ensure that Huawei kit is being removed at pace to meet the 2027 deadline? Can he update us on that? Does he intend to review the 35% threshold in relation to full-fibre access? Given the current geopolitical environment, what assessments has he made of other providers in our telecoms supply chain, and can he update us on current providers of interest?

Huawei kit is not limited to telecoms infrastructure. Can the Minister update us as to the Government’s position on Huawei and its security risks? Were our concerns regarding Huawei raised during the Government’s recent engagement with China, including with regard to the domestic import of high-tech Chinese-made consumer goods such as electric vehicles? Finally, what assessment has the Minister made of the risks that emerging new technologies, including the large language model DeepSeek, which is based in China, may pose to domestic and commercial users? Do the Government intend to provide guidance on that?