Huawei Australia eyes 5G reprieve

Chinese telco vendor is hoping to find a way back into Australian 5G networks despite local telcos signing deals with its rivals.

The British government continues to see Huawei as a high-risk vendor, with the company locked out of all sensitive aspects of the networks. Picture: AFP

Huawei is looking to leverage its win in Britain to find a way back into Australian 5G networks, despite Vodafone Hutchison Australia and Optus hitching their wagons with rival equipment vendors.

The Chinese company, banned from supplying 5G equipment to Australian telcos in 2018, has received the green light to operate in the UK against the advice provided by the US and Australian governments.

While its involvement is limited to the non-core component of the 5G networks, the company’s Australian arm says the decision debunks the main reason, cited by the Coalition government, behind the ban.

The decision, made by the Turnbull government, was based on the premise that the core and the Radio Access Network (RAN) infrastructure were intrinsically connected in a 5G network.

While the core network is where sensitive functions such as access control, authentication, voice and data routing and billing are carried out, the RAN layer consists of the radios and other equipment used to connect customer equipment (such as handsets, laptops and tablets) to the core network.

Jeremy Mitchell, director of corporate and public affairs at Huawei Australia, said the Australian government’s had made its call on incorrect information.

“The Turnbull government was pushing a line that you couldn’t split the core and non-core networks, the UK decision shows that’s incorrect.”

“The government made its decision very quickly, however, the 18 months have seen a big change in sentiment, a number of US allies, South Korea, Germany and now UK, now welcoming Huawei.”

He added the decision in the UK should open the door for a “fact-based approach” on the issue.

“The decision made by the Australian government doesn’t reflect where the rest of the world is going.”

Despite the win in the UK, Huawei’s chances of reviving its 5G fortunes in Australia are negligible, according to Tom Uren, a senior analyst with the Australian Strategic Policy Institute (ASPI).

“My impression is that this is done and dusted, people aren’t that interested,” he told The Australian.

“It’s unlikely the government will change its mind, there’s no appetite for it.”

He added that the British government continues to see Huawei as a high-risk vendor, with the company locked out of all sensitive aspects of the networks.

“The fundamental assumption remains the same, they see risks with Chinese vendors, and it’s just that they have decided to deal with the risk differently.”

Meanwhile, the local mobile operators have also moved on.

Vodafone Australia, a vocal critic of the Huawei ban, said on Wednesday the Chinese company was no longer a part of its 5G roadmap.

“The Australian Government announced the Huawei ban around 18 months ago, and while we remain concerned about the impact on competition and innovation in the local market, we accepted its decision.”

“We have moved on with our 5G plans with Nokia, with our rollout to begin this year,” the telco said.

While Vodafone Australia’s parent Vodafone Group is a major operator in the UK, their respective mobile networks are completely separate from each other, with no risk of Huawei gaining any access to Australian infrastructure.

Optus, which already has over 400 active 5G-enabled sites active, is also forging ahead with its plans. Telstra was unaffected by the Huawei ban, having relied on Sweden’s Ericsson as its principal mobile equipment partner.

With the 5G rollouts in Australia is still in their early phase, Huawei Australia is still hopeful that it can find a foothold in the local market before it’s too late

“The 5G rollout still has some way to go, it’s not too late but the opportunity is shrinking, we still have a couple of years before we get the increased penetration,” Mr Mitchell said.

“In Australia we will continue to highlight the biggest impact of the loss of not having Huawei in the networks will be felt by regional Australia.”

“Unless we are involved a portion of the Australian public will miss out because of the costs involved with 5G, unless the government puts in the money,” he added.