TPG Telecom has cancelled its plans to build the nation's fourth 4G mobile network, in a dramatic move that the telco blamed on the federal government's ban on Huawei equipment being used on 5G networks.

The surprise announcement, made on Tuesday morning, came as the Australian Competition and Consumer Commission (ACCC) considered the proposed merger between TPG and Vodafone, and was read by many as an attempt to force the ACCC to approve the $15 billion deal by eliminating the main concern that a merger would lessen competition in the mobile market.