Huawei and ZTE aren’t allowed to help build Australia’s 5G network

After the Australian Government announced that it would disqualify companies from participating in the 5G network rollout that are “likely subject to extrajudicial directions from a foreign government”, Huawei has confirmed that both it, and fellow Chinese mobile provider ZTE, have been banned from providing infrastructure.

The Government’s decision is likely the result of of a similar ban that the US has enforced on the two companies, where there were fears of espionage if such third-party vendors were to supply core communications infrastructure.

More specifically, the Australian Government claims that using these vendors “may risk failure by the carrier to adequately protect a 5G network from unauthorised access or interference”.

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Response

In the same confirmation tweet, Huawei Australia stated that the company had been “safely and securely delivering wireless technology in Aust for close to 15 yrs” and that it was an “extremely disappointing result for consumers.”

China has responded by pleading for a change of heart, with Foreign Minister Lu Kang warning the Australian Government not to “use various excuses to artificially erect barriers", and urging it to “abandon ideological prejudices and provide a fair competitive environment for Chinese companies' operations in Australia.”

Similarly, China’s Ministry of Commerce has said that Australia has made the “wrong decision” — the effects of which will negatively impact both Australian and Chinese companies.

Vodafone’s Chief Strategy Officer, Dan Lloyd, has pointed out that the decision will have significant economical impacts for carriers’ investment plans, claiming that it “fundamentally undermines Australia’s 5G future”.

It’s unclear exactly what impact this decision will have on Australian consumers, but considering Huawei is the world’s largest producer of telecommunications equipment globally, the rollout may ultimately cost more and take longer as a result of its absence.