Huawei considers NZ exit over block on 5G upgrade

In a letter to GCSB Minister Andrew Little and Communications Minister Kris Faafoi, Huawei says that if it continues to be blocked from 5G upgrades, it may exit the New Zealand market.

The letter, from Huawei NZ managing director Yanek Fan and leaked to NewstalkZB, says it would be “arbitrary and capricious” to single out his company under a “country of origin” approach when others involved in 5G technology have links to China.

“This would have a significant effect on Huawei New Zealand’s revenue, to the point where there is a real risk that Huawei New Zealand may not be able to continue to operate in the New Zealand market”, the letter says.

The Huawei boss notes that US rival Cisco and European rivals Nokia Networks and Ericsson all have Chinese joint ventures. And he notes that Nokia’s joint venture, Nokia Shanghai Bell, is with the Chinese Government, whereas Huawei is private.

Nokia Networks’ primary mobile customer in NZ is Vodafone.

Vodafone spokeswoman Nicky Preston said, “We are engaged with the GCSB and have provided details about our 5G deployment as required by Telecommunications (Interception Capability and Security) Act [TICSA]. We are confident that our 5G deployment meets all current requirements under TICSA.

“It’s worth noting our infrastructure Nokia has already rolled out 5G networks around the globe.”

In the letter, Yan reiterates Huawei’s longstanding complaint of a lack of engagement from the Government.

Huawei deputy MD Andrew Bowater told NewsTalkZB the letter’s reference to pulling out of New Zealand was not a threat but “setting out the reality of the situation.”

Little has said on several occasions that legislation requires the GCSB alone to vet network upgrades, and that the Crown must be removed and neutral from the process.