Move FM Australian News

WELLINGTON, New Zealand – Citing national security concerns, New Zealand’s top intelligence agency has rejected a bid by the telecommunications services provider Spark New Zealand, to use 5G equipment provided by China’s Huawei Technologies Co.

Huawei, which has faced similar bans in the U.S. and Australia, suffered another setback after New Zealand blocked its 5G bid. 

The request made by Spark New Zealand was the first telecom industry request made in New Zealand, to further the advance towards 5G – that several telecom and network providers in various countries globally are trying to achieve before 2020. 

Following the rejection by New Zealand’s Government Communications Security Bureau (GCSB), Spark New Zealand said that it would now review the reasoning before considering any further steps.

Meanwhile, Andrew Hampton, the Director-General of the Government Communications Security Bureau said in a statement, “I have informed Spark that a significant network security risk was identified.”

After the decision by New Zealand on Wednesday, Huawei said in a statement that it will “actively address any concerns and work together to find a way forward.”

The telecom giant said that it has signed more than 20 5G contracts with carriers worldwide.

New Zealand’s rejection of Huawei comes at a time when the Chinese telecom giant has already faced bans by some top Western nations, that have grown increasingly wary of alleged Chinese government involvement in fifth-generation mobile and other communications networks. 

The rejection also comes despite Huawei’s repeated insistence that Beijing has no influence over the company, its products or its technology.

China expressed “serious concern” over the decision, with the country’s Foreign Ministry spokesman Geng Shuang claiming that China-New Zealand business ties were mutually beneficial and win-win.

Shuang told reporters during a daily news briefing in Beijing, “We hope the New Zealand government provides a fair competition environment for Chinese companies operating in New Zealand, and does more to benefit bilateral mutual trust and cooperation.”

Meanwhile, in a statement issued to Reuters, New Zealand’s Intelligence services minister Andrew Little said that Spark could work with the agency to mitigate risk.

He added that each decision regarding telecom technology was made separately under telecom and security legislation.

The minister noted, “The difference between 5G networks and conventional 4G and 3G networks is the configuration of the technology. With 5G technology, every component of the 5G network means every part of the network can be accessed.”