Huawei says the UK risks being bumped to the "digital slow lane" after the government announced it would ban the vendor's tech in the 5G rollout.
Under the new ruling UK mobile providers are cannot purchase Huawei technology after 31 December this year, while all other 5G kit must be removed by 2027.
Broadband operators must also transition their hardware away from Huawei over the next two years, in what will be seen as a win for the likes of Nokia and Ericsson.
Digital Secretary Oliver Dowden announced the move in the House of Commons today.
"This has not been an easy decision, but it is the right one for the UK telecoms networks, for our national security and our economy, both now and indeed in the long run," he said.
The government U-turn was promoted by a new, harsher restriction placed on Huawei by the US government which bans it from using US hardware and software.
The National Cyber Security Centre is fearful that this move will lead to Huawei using technology from other potentially threatening sources.
"Given the uncertainty this creates around Huawei's supply chain, the UK can no longer be confident it will be able to guarantee the security of future Huawei 5G equipment affected by the change in the US foreign direct product rules," Dowden added.
Ed Brewster of Huawei UK, said: "This disappointing decision is bad news for anyone in the UK with a mobile phone. It threatens to move Britain into the digital slow lane, push up bills and deepen the digital divide.
"Instead of ‘levelling up' the government is levelling down and we urge them to reconsider. We remain confident that the new US restrictions would not have affected the resilience or security of the products we supply to the UK.
"Regrettably our future in the UK has become politicised, this is about US trade policy and not security. Over the past 20 years, Huawei has focused on building a better connected UK. As a responsible business, we will continue to support our customers as we have always done."
UK mobile providers have claimed that any ban on Huawei would be hugely costly, with BT claiming that even reducing Huawei to a limited involvement, as the government had initially planned, would cost it £500m. BT operates the EE network.
Huawei competitor Ericsson was quick to pounce on its competitor's misfortune, claiming the UK can now move forward.
Arun Bansal, president of Europe and Latin America, said: "Today's decision removes the uncertainty that was slowing down investment decisions around the deployment of 5G in the UK.
"It is now time for the industry to come together and start delivering on the promise of creating a world-leading 5G network for the people, businesses and economy of the UK. Ericsson has the technology, experience and supply chain capacity to help accomplish this, and we stand ready to work with the UK operators to meet their timetable, with no disruption to customers."
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