GCSB's 5SG ban on Huawei may not be the last word

Chinese telecommunications giant Huawei has not been allowed to supply 5G hardware to Spark because of "a significant risk to network security".

A spokeswoman for the Government's Communications Security Office (GCSB) said that this decision was the beginning of a process rather than the end of a process, but that ministers could be involved in a process. later, as discussions with Spark continue.

The GCSB on Wednesday rejected Spark's proposal to use Chinese telecoms giant Huawei's equipment to build a 5G mobile network.

The governments of the United States and Australia have long been concerned about the safety implications of using telecommunication equipment from China. Huawei claimed that their protection was more protectionist than the real fear of espionage.

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Operators of kiwifruit networks seemed to have so far had relatively free power to acquire Huawei's hardware, which is widely used by Spark, 2degrees and for the provision of very high speed.

But sources said the government was facing increased pressure to put itself on the line with fellow security alliance members "Five Eyes", which also includes the UK and Canada.

Spark briefed GCSB CEO Andrew Hampton on his planned approach to 5G, which she hopes to bring to customers by July 2020.

It is understood that she wanted to know if she could use Huawei as she prepares to negotiate her supply agreements.

His plan included the deployment of Huawei 5G equipment on his cell towers.

Spark said Wednesday that the GCSB told him that the plan would raise "significant risks to national security".

It is understood that the notice – if it stands – would in practice preclude Huawei from participating in the deployment of 5G technology in New Zealand, but there is no indication that equipment already provided by Huawei for other networks telecommunications should be removed.

Huawei has been contacted for a comment.

Anne-Marie Brady, a professor at the University of Canterbury, fearing to have been targeted by the Chinese government for her research on her campaigns for influence, said the GCSB's decision was a "turnaround "and a change of policy.

"According to the information we have on Huawei, it's the right decision," she said.

A "fact sheet" provided by the GCSB indicated that the next step might be for Spark to explain how it could "prevent or mitigate" the risk identified by the GCSB. Otherwise, he could withdraw his proposal.

If Spark took the old route, the GCSB would then decide to refer the case to the GCSB's minister, Andrew Little.

"The Minister must consider considerations different from the CEO's determination, including the potential consequences this direction may have on competition and innovation in telecommunications markets," said the GCSB.

But Paul Spain, chief executive of Auckland-based computer services company Gorilla Technology, said the GCSB's decision was "incredibly clear for Huawei and the telephone operators regarding the limits to follow."

"The United States is pressuring its allies, New Zealand and Five Eyes partners to stop using Huawei in their networks," he said.

Another industry source said New Zealand had stood up well to its efforts to maintain good relations with the United States and China, but had been sidelined by the pressure exerted on Huawei.

Spark stated that it would review the rationale behind the decision and consider next steps.

"Although we are disappointed with this decision, we are confident that this decision will not affect our intention to launch the Spark 5G Network by July 2020, provided that the New Zealand government provides the necessary spectrum, "said the company in a statement. .

Hampton confirmed its decision in a statement by not designating Huawei as the company whose equipment was the focus of its concerns.

"GCSB, under its Telecommunications Act (interception and security capability), recently undertook an assessment of a Spark notification," he said.

"I've informed Spark that a significant risk to network security has been identified, and since there is an ongoing regulatory process, I will not comment further at this point." The GCSB considers that all notifications that he receives are commercially sensitive, "he added.

Huawei's ties with the Chinese Communist Party and the business environment in China, where even private companies have strong relations with the government, seem to have led Huawei to be considered a threat to security. You will find here a more detailed explanation of the concerns raised by Huawei's participation in the deployment of 5G.

Australia and the United States have prevented the company from providing 5G material for security reasons.

Spark warned that a ban would also affect its costs.

2degrees spokesman, Mathew Bolland, said that he had not had any discussion with the GCSB about the impact his decision might have on his 5G projects and that he "sought clarity".

"Our comments on the importance of the presence of multiple suppliers to ensure price competitiveness are still valid, and if this announcement has a similar impact on 2 degrees, it will be a real disappointment for the competition," he said. he declares.

"2degrees is however committed to building a 5G network," he added.