Huawei's First 5G Bid Was Rejected In New Zealand Due To Security Reasons

Due to national security concerns, the first request from New Zealand’s telecom industry to use 5G devices supplied by China’s Huawei Technologies Co Ltd has been rejected by the country’s intelligence agency.

On Wednesday, the company behind this request which is telecommunications services provider Spark New Zealand Ltd stated that it would make an evaluation on the proposal before any further steps to be considered.

The decision was made based on Western countries' worry about the possible involvement of the Chinese government in fifth-generation handsets and other communications networks. Huawei has insisted that there is no influence from Beijing over this.

Previously this year, New Zealand’s neighboring country, Australia, has also banned Huawei from 5G equipment supply because of security reasons. In a report from the Wall Street Journal last week, companies in allied countries of the U.S government have been persuaded to avoid Huawei.

On Wednesday, General Andrew Hampton – Government Communications Security Bureau Director commented that he had informed Spark New Zealand Ltd on the detection of a significant network security risk.

According to Intelligent services minister Andrew Little, Spark New Zealand Ltd’s request on the 5G application was one of the first ones in the country. Moreover, the company could negotiate with the agency to reduce the risk. No comment on the specific concern can be made due to it being classified information.

In a statement from Huawei, the company said that they would actively deal with any concerns and work together to find solutions. The company also revealed that it has partnered with over 20 carriers around the globe on the 5G application.

Geng Shuang, Chinese Foreign Ministry spokesman, has expressed “serious concern” over this situation and stated that business ties between China and New Zealand were win-win and mutually beneficial. In an interview with the press, he also expressed the Chinese government’s hope in a fair competition environment for Chinese companies operating in New Zealand as well as establishing bilateral mutual trust and cooperation between the two nations.

It’s not that Huawei has not been involved in other telecommunications systems in New Zealand before. The company has invested NZ$400 in the research and development of its 4G mobile network.

Little said that under telecom and security legislation, any decision relating to telecom technology was made separately. He stated that the configuration of the technology is what different between conventional 4G and 3G networks and 5G networks. With 5G, every part of the network can be easily accessed. This worried Australian that considered the network’s less sensitive components, it was difficult to put a limit on carriers.

The rival of Spark, 2degrees said that the company had taken note on the decision and was on a process of seeking clarity on this. 2degrees corporate affairs chief Mathey Bolland said that it is still essential for carriers to deliver competitive price. Therefore, there will be no competition if this announcement also put a similar impact on 2degrees.

Whereas, Vodafone New Zealand Ltd declined to make any comment on this matter.