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Australian telecommunications company TPG has canceled plans to roll out the country's fourth-largest mobile phone network following the government's decision to ban Huawei as a 5G technology provider.
The decision marks a blow to Canberra's efforts to boost competition in the mobile phone sector and is among the first major commercial responses to the growing number of Western countries announcing the ban on Huawei 5G equipment for reasons national security.
In a statement, TPG announced its decision to stop the rollout of its 4G mobile network in Australia with Huawei equipment due to Huawei's ban announced in August 2018.
"The main equipment supplier selected for the network was Huawei. One of the main reasons for choosing the provider and designing the TPG network was that there was a simple upgrade path to 5G, using Huawei equipment, "the company said. "In light of the announcement made by the government late August 2018 to ban the use of Huawei equipment in 5G networks, this upgrade path is now blocked."
TPG said it has spent 100 million Australian dollars ($ 71.7 million) so far for the rollout of the network and that it was not logical from a commercial point of view. 39, invest more shareholder funds.
TPG and Vodafone, Australia's third-largest mobile operator, have announced plans to merge, although they have not yet been approved by the competition regulator, ACCC. The regulator has already indicated that allowing the merger could reduce competition in the mobile communications sector.
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