The UK is poised to end the use of Huawei technology in its 5G network as soon as this year amid security concerns, it emerged last night.
Prime Minister Boris Johnson is set to strike a major policy change after GCHQ is believed to have reassessed the risks posed by the Chinese tech company, newspapers have stated.
A study set to be presented to Mr Johnson this week will declare that US sanctions on Huawei will force the company to use technology that is 'untrusted', reports said.
The Prime Minister's decision to allow Huawei a limited roll in Britain's 5G network is believed to have caused tension between London and Washington DC in recent months.
A report by GCHQ's National Cyber Security Centre has decided the US sanctions barring Huawei from using technology relying on American intellectual property has had a 'severe' impact on the firm, the Sunday Telegraph reported.
The newspaper stated that officials are crafting proposals to prevent new Huawei equipment being installed in the 5G network in as little as six months.
The involvement of the Chinese tech firm in Britain's 5G network also caused concern among a number of prominent figures on the Conservative backbenches.
The Mail on Sunday reported that the National Cyber Security Centre was instructed to carry out a review on the situation.
It also reported the organisation found that US sanctions had a major impact on the firm's viability, the newspaper said.
In January, Prime Minister Boris Johnson gave Huawei the green light to build 35 per cent of Britain's next generation 5G internet infrastructure. However, questions over the security of doing so could leave the deal in tatters. Above, Huawei's Reading UK headquarters
Downing Street had hoped to delay the row until the autumn, in order to avoid a showdown with more than 60 Conservative MPs who are demanding the firm be banned.
The Prime Minister is now due to be briefed in the coming days on the report's findings by Culture and Digital Secretary Oliver Dowden, who has oversight of the NCSC.
However, it is understood the findings are so severe that Mr Johnson will need to present them to Parliament by the end of the month. Whitehall insiders believe his original plan will be junked as a result.
This newspaper has also learned that Mr Dowden will recommend high-risk vendors, such as Huawei, are stripped out of Britain's telecom networks by the end of 2029. Current departmental thinking is to announce a 'no new orders' directive to phone providers over Huawei kit from next year, to limit the amount going into British networks.
Boris Johnson and Downing Street had hoped to delay the row until the autumn, in order to avoid a showdown with more than 60 Conservative MPs who are demanding the firm be banned from providing the UK with its 5G infrastructure
However, industry experts have warned Ministers that if Huawei kit is stripped out too quickly, there are risks of mobile phone signal blackouts across parts of Britain.
The North is particularly reliant on Huawei equipment, raising the politically unpalatable notion of patchy phone signals in new Tory-won seats in the so-called 'Red Wall' in the run-up to the 2025 Election.
The NCSC report has injected a new urgency into Mr Johnson's handling of the telecoms issue. It is thought the development will be a blow to his 2019 manifesto promise for superfast broadband across the whole country by 2025.
However, sources denied Whitehall insiders' claims that No 10 were attempting to 'go slow' on Huawei policy to see who wins the US presidential election in November.
The Prime Minister is now due to be briefed in the coming days on the report's findings by Culture and Digital Secretary Oliver Dowden, pictured above, who has oversight of the NCSC
Some Ministers and officials are hoping Britain's change of plans could be temporarily shelved amid the political uncertainty in Washington.
One source said: 'It's not clear that Trump is going to still be going so hard on this come November, so we would be mad not to take that into consideration when ripping up established policy.'
A Huawei spokesman said: 'Huawei is the most scrutinised vendor in the world and we firmly believe our unrivalled transparency in the UK means we can continue to be trusted to play a part in Britain's gigabit upgrade.'