Huawei Australia tweeted on August 23 that the Australian authority has banned Huawei and ZTE from providing 5G technology in the country.
The tweet reads, “This is an extremely disappointing result for consumers. Huawei is a world leader in 5G. Has safely & securely delivered wireless technology in Australia for close to 15 years.”
As the world’s largest telecommunications network manufacturer and third-largest cell phone manufacturer, Huawei has previously promised to conduct a comprehensive audit over 5G network facilities in Australia, including base stations, telecommunication towers and radio transmission facilities.
According to ABC News, acting Home Affairs Minister Scott Morrison and Communications Minister Mitch Fifield said in an official statement that the government would rule out vendors that could not adequately protect the network from interference.
This is not the first time that the Australian government made the news along with Huawei and ZTE. Back in February, Business Insider reported that Australia’s defence department decided to phase out mobile phones from Huawei and ZTE that are originally used for unclassified voice and text purposes.
According to Huawei Australia’s chairman John Lord, Huawei is 18 months ahead of its competitors in terms of 5G development and the ban would severely affect local businesses in Australia. “This is not just a tough political decision. This is a long term technology decision that could impact our growth and productivity for generations to come,” said Lord.
Huawei estimates that the ban will elevate the cost of building 5G network by billions of dollars for the network operators, while insiders say that it increase the cost by as much as 50 percent. Local operators such as Optus and TPG have yet to comment on the matter.