Biz / Tech

Huawei calls Australia 5G ban 'politically motivated'

Australia's 5G ban is "politically motivated" and will hurt consumers and the country's digital economy, and Huawei will "take all possible measures" to protect its rights.

Australia's 5G ban is “politically motivated” and will hurt consumers and the country’s digital economy, and Huawei will "take all possible measures" to protect its rights, the company said Friday.

Australia announced on Thursday they will ban major Chinese telecoms firms, including Huawei and ZTE, from supplying equipment for the country’s planned 5G mobile network, citing the risk of foreign interference and hacking.

"The decision is politically motivated, not the result of market-orientated and transparent decision-making,” Huawei said in a statement today. “It denies Australian businesses and consumers their right to choose.”

The ban will bring “negative influence" when Australia should be creating an open and fair business environment for all foreign firms, the Ministry of Commerce said on its website last night.

Next-generation mobile communication technology, or 5G, offers users 20 to 50 times faster mobile Internet access speeds compared with the current 4G. It is expected to be adopted between 2019 and 2020.

The cost of 5G networks will rise as a result of the lack of competition and further impact Australia's "transition to a digital economy," Huawei, one of top telecommunication gear vendors in the world, argued. 

For example, a monthly package in Australia costing AS$60 (US$44) had 1.5 GB of data in 2012. With Huawei’s entry and expansion into the 4G market, customers now pay less while receiving more data and calling time. 

Technically, 5G has similar network infrastructure to 4G and contains core networks and access networks. It is more complete in terms of security and privacy protection, Huawei said.

It’s groundless to have more concern about hacking and security with 5G, industry insiders said.

Huawei will continue engaging with the federal government and "take all possible measures to protect our legal rights and interests," including legal action, the statement said.

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