The UK’s mobile providers are being banned buying new Huawei 5G equipment after 31 December, and they must also remove all the Chinese 5G kit from their networks by 2027.
Digital Secretary UK Oliver Dowden told the House of Commons of the decision.
It follows sanctions imposed by Washington, which claims the firm poses a national security threat – something Huawei denies.
The technology promises faster internet speeds and the capacity to support more wireless devices, which should be plus to everything from mobile gaming to higher-quality video streams, and even in time driverless cars . 5G connections are already available in more than 11 of UK cities and towns, but coverage can be sparse.
Mr Dowden added that the cumulative cost of the moves when coupled with earlier restrictions announced against Huawei would be up to £2bn.
“This has not been an easy decision, but it is the right one for the UK telecoms networks, for UK national security and our economy, both now and indeed in the long run,” he said.