Huawei the Chinese telecommunications manufacturing giant has signed a contract with £120 million to provide management services over a five year period to phone company Three.

The contract comes after Huawei announced plans to invest £2 billion within the UK market over the next five years.

Huawei have reportedly faced criticism by the European Commission in undercutting European telecommunications firms through extremely low rates.

As well as being criticised for expansion into European markets Huawei are also currently being investigated by the Parliamentary Intelligence and Security Committee regarding the companies security risk.