Mobile telecommunications operator 2degrees says the decision to ban Huawei from involvement in the roll-out of the country's 5G network for national security reasons "will be a real disappointment for competition".
The Government Communications Security Bureau announced today that it had assessed the use of the Chinese company's equipment in the 5G network after an approach from Spark New Zealand and had "informed Spark that a significant network security risk was identified".
The decision means New Zealand is lining up with two of its allies in the Five Eyes global signals spy network, the United States and Australia, in effectively banning the use of Huawei equipment in the roll-out of the next generation of high-speed, mobile telecommunications known as 5G.
In a statement to the NZX, Spark said the director-general of the GCSB had informed the company that its proposal to use Huawei 5G equipment in its Spark's planned 5G Radio Access Network - part of its cell tower infrastructure - would raise "significant national security risks".
"This means Spark cannot implement or give effect to its proposal to use Huawei RAN equipment in its planned 5G network" under the terms of the Telecommunications (Interception Capability and Security) Act 2013.