Things haven’t really been going good for Huawei’s core telecommunication equipment business. Recently, the US government was reported to have asked its allies to stop using the Chinese company’s telecommunication products. Now, if a new report is to be believed, New Zealand has banned Huawei from selling its mobile network equipment to a domestic company called Spark.
New Zealand’s Government Communications Security Bureau (GCSB) cited risk to national security as the primary reason for the move. As per director-general of the GCSB, Andrew Hampton, “A significant network security risk was identified” by the agency in Spark’s plans. This development comes after a recent statement from Kris Faafoi, Communications Minister of New Zealand, who said that the country might follow Australia’s lead in banning Chinese companies from building key network infrastructure. Huawei was a major market for Huawei until later this year, when the country issued a ban on the company in August. Until then, Huawei accounted for 55 percent of Australia’s 4G market share.
Huawei not only supplies to Asia’s big nations, Europe’s major mobile networks are also its customers. Telcos like Vodafone and BT in the UK are just some of them. The GCSB’s decision is similar to what other countries have done in the previous months with the Shenzhen-based technology giant. The US first initiated action on the company when US President Donald Trump signed a law banning use of Huawei technology by government executives.
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Meanwhile, Huawei has acknowledged the situation and the company is working on a solution.