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Kiwi Telco Spark has had an application to incorporate Huawei's Radio Access Network (RAN) equipment into its 5G infrastructure plans for security reasons.
The Government Communications Security Office (GCSB) cited the Interception and Security of Telecommunications Act (TICSA) as a ground for rejecting Spark's request to include Huawei equipment in its 5G infrastructure, suggesting that it could be from another country that would completely close the door to Huawei.
"The Managing Director informed today Spark that he felt that Spark's proposal to use Huawei 5G equipment in the RAN 5G planned by Spark would create, if it were implemented, risks important for national security, "Spark said in a statement. "Spark has not yet had the opportunity to examine the detailed reasoning behind the Director-General's decision. As a result of our review, Spark will review the next steps, if any. "
"In accordance with Spark New Zealand's statement today, I can confirm that the GCSB has recently undertaken to evaluate a Spark notification under the TICSA," said GCSB Executive Director Andrew Hampton. "I informed Spark that a significant risk to the security of the network had been identified. As there is an ongoing regulatory process, I will not make any other comments at this stage. The GCSB considers all notifications received as commercially sensitive. "
The details on the specific reasoning of the GCSB are for the moment absent, although this appears in the coming weeks. Either Spark will tell stories about the situation, Huawei will retaliate or someone will let the documents leak on the Internet. It will only be a matter of time, although Spark reiterated that this decision would not affect its plans to launch 5G services in New Zealand by mid-2020.
Unfortunately for Huawei, it seems like it will be another country where it will be banned from the 5G bonanza.
The anti-Chinese rhetoric has of course started in the United States, where Huawei and ZTE have been banned from any meaningful contract, even though Australia has quickly followed suit. South Korea was the next domino to fall, though operators simply omitted Huawei from the list of preferred suppliers, as opposed to a ban. New Zealand is the next country to join, even though it is unlikely to be the last story we write of this nature.
As trade talks between the United States and China continue, President Trump has intensified pressure on his counterpart in Beijing. Not only were more tariffs threatened, with potential collateral damage for Apple, but Trump would have whispered to allies' ears, trying to convince them to ban Huawei and ZTE from operating at the company. 39, within their borders. It seems that repetitive whispering has been successful in convincing the Kiwis.
There are of course some countries that will resist the calls for Huawei's ban. The UK is an example that seems too invested in the provider and that would have too much to lose if banned, even if the dominoes are lined up and start to fall. The political and economic power of the United States makes it an influential voice in the global community, which will certainly worry the Chinese seller. For their part, Nokia, Ericsson and Samsung will be satisfied with the evolution of the conversation.
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