This latest blow for Huawei will also see the firm excluded from bidding for contracts to supply equipment for use in BT's core 5G network, although BT will continue to use the firm's kit in "benign" parts of its network, such as equipment on masts.
As news emerges that Huawei's global chief financial officer has been arrested in Canada, to be extradited to the US, BT has confirmed that it is removing Huawei network equipment from key areas in its 4G network.
The revelations follow security concerns which were ramped up by a recent report by the US-China Economic and Security Review Commission, which alleged Huawei and other Chinese 5G equipment manufacturers could be vulnerable to state influence from Beijing. BT Group, formerly British Telecom, has chose to not only strip Huawei of its core 4G network but also close the door on any future 5G plans.
While the German government resists pressure from officials to ban Huawei during the building of its 5G network, United Kingdom telecoms firm BT has opted to outright ban the Chinese company.
The world's second biggest smartphone maker Huawei, is at the centre of a spying and trade dispute after a top executive was arrested in Canada, and BT removed 4G networking equipment in the UK.
It added: "Huawei remains an important equipment provider outside the core network, and a valued innovation partner".
"We're applying these same principles to our current RFP (request for proposal) for 5G core infrastructure".
"We need to decide the extent to which we are going to be comfortable with Chinese ownership of these technologies and these platforms in an environment where some of our allies have taken a very definite position", he said in a rare public address.
Of course, Huawei maintain that it has no affiliation with the Chinese government, despite founder Ren Zhengfei notably providing his expertise for the Communist Party in 1978, working as an engineer in country's army.
"Since it acquired EE in 2016, the BT Group has been actively bringing EE's legacy network architecture in line with this long-standing agreement".
"We have never had a cyber security-related incident", it said.
Fellow UK mobile carrier Three last month also announced that it is working with Huawei on a 5G home broadband demo in London.