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TPG stopped the mobile network roll out as it relied mostly on Huawei

Australia’s TPG Telecom Ltd is halting rollout of its mobile telephone network, as announced the company on Tuesday.

The TPG’s decision came out because of its reliance upon the equipment of Huawei, which the Australian government on security concerns has banned last year.

Australia’s intelligence agencies feared that Huawei, with its equipment used in most of the mobile operator’s networks, could possibly collect data if asked by the Chinese government to do so, which the company has repeatedly denied.

TPG has network design which could easily be upgraded to 5G network with the Huawei’s equipment and that was the main reason to select the Chinese equipment maker as its vendor, the company said in a statement.

For the roll out of 5G network, TPG has already spent about A$100 million ($71.66 million) which left the company not in a position to change its future plans, company said.

The company remained using equipment purchased from Huawei before the announcement made by the government regarding its banning, but now after that announcement, company has to make the decision to purchase equipment from Huawei furthermore or not, the Australian firm said.

Citing security threats, the United States has restricted the Huawei and its Chinese fellow company ZTE Corp from the U.S. lucrative market putting the Chinese firm under pressure globally which is the world’s largest maker of telecommunications network gear.

Australian government restricted Huawei also concerning national security risks, Huawei criticized the government’s ban and described it as being politically motivated.

In Australia, Huawei is already a supplier of country’s 4G network.

In November, a telecom company in neighboring New Zealand requested to use equipment provided by Huawei in the 5G network, but also for their concerns about national security, intelligence agency of the New Zealand had rejected the request which was telecom industry’s first request in the country.

Maria Wiggins

Written by Maria Wiggins

Maria Wiggins:- News Stories
I am Maria Wiggins and I have over 11 years experience in the Technology industry giving me a vast understanding of how news affects the financial markets. I am an active day trader spending the majority of my time analyzing earnings reports and watching commodities and derivatives. I have a Masters Degree in Economics from Westminster University with previous roles counting Investment Banking.

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