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Monday, 26 March 2012 - Australia blocks China's Huawei from broadband tender |
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Ltd. is seen at the 13th China Hi-Tech Fair in Shenzhen, Guangdong province November 16, 2011. Credit: Reuters/Stringer By Maggie Lu-YueYang CANBERRA | Mon Mar 26, 2012 8:38am EDT CANBERRA (Reuters) - Australia has blocked China's Huawei Technologies Co Ltd HWT.UL from tendering for contracts in the country's $38 billion National Broadband Network (NBN) due to cyber security concerns, Huawei said on Monday. "We were informed by the government that there is no role for Huawei in Australia's NBN," said Jeremy Mitchell, a spokesman in Australia for Huawei, the world's No. 2 telecommunications equipment maker. NBN is a huge project that aims to connect 93 percent of Australian homes and workplaces with optical fibre, providing broadband services in urban and regional areas. It was created in 2009 by the Australian government with committed investment of up to $38 billion and is expected to be ready by 2020. The Australian Financial Review said in a report earlier on Monday that Huawei was seeking to secure a supply contract worth up to A$1 billion ($1.04 billion) with NBN, but has been blocked by the Attorney-General's department based on advice from Australian Security Intelligence Organization (ASIO). When asked to comment on the report, a spokesman for Attorney-General Nicola Roxon said in a statement: "This is consistent with the government's practice for ensuring the security and resilience of Australia's critical infrastructure more broadly." The government does not intend to comment on specific discussions with companies, which are confidential, he added. The ASIO declined to comment on the report. On the sidelines of a nuclear security summit in South Korea, Prime Minister Julia Gillard told reporters the government had made a prudent decision on NBN contract tenders. "You would expect as a government that we make all of the prudent decisions to make sure that the infrastructure project does what we want it to do, and we've taken one of those decisions," she said. <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ Huawei dismisses U.S. calls for Iran probe Huawei calls on U.S. to investigate Huawei rejects China aid claim CISCO sees Huawei as long term competitor ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> Huawei was founded by its CEO Ren Zhengfei, a former officer of the People's Liberation Army in China, which has fuelled the claim that it has a cosy relationship with the Chinese government - a claim denied by the company. The Shenzhen-based firm, like crosstown rival ZTE Corp (000063.SZ) (0763.HK), has been struggling to expand in the United States, which blocked its telecom equipment deals due to national security concerns and allegations it violated sanctions by supplying Iran with censorship equipment. In 2008, a bid to buy 3Com by Huawei and Bain Capital Partners failed to win approval from a U.S. government security panel. U.S. congressional suspicions over Huawei's origins also scuttled attempts by the Chinese company to purchase small networking company 3Leaf in 2011, and have barred sales to any U.S. operator. "While we're obviously disappointed by the decision (of Australia), Huawei will continue to be open and transparent and work to find ways of providing assurance around the security of our technology," the Chinese company said in a statement. "We have never been told by the Chinese government to do a certain thing. If we would, that would be to our detriment and we would lose the market share that we have," Mitchell told Australian Broadcasting Corp television. Huawei started its Australian operations in 2004 and has expanded its business across Australia, New Zealand and the South Pacific. Australia's former foreign minister Alexander Downer, who is an independent director on the board of Huawei's Australian unit, rejected the government's security concerns. "This sort of whole concept of Huawei being involved in cyber warfare, presumably that would just be based on the fact that the company comes from China. This is just completely absurd," he told ABC radio on Monday. (A$1=$1.04) (Editing by Muralikumar Anantharaman and Mark Potter) Tech Media China Related Quotes and News Company Price Related News Tweet this Link this Share this Digg this Email Reprints   We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/ Comments (0) Be the first to comment on reuters.com. Add yours using the box above.   Edition: U.S. Africa Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom Back to top Reuters.com Business Markets World Politics Technology Opinion Money Pictures Videos Site Index Legal Bankruptcy Law California Legal New York Legal Securities Law Support & Contact Support Corrections Advertise With Us Connect with Reuters Twitter   Facebook   LinkedIn   RSS   Podcast   Newsletters   Mobile About Privacy Policy Terms of Use AdChoices Copyright Our Flagship financial information platform incorporating Reuters Insider An ultra-low latency infrastructure for electronic trading and data distribution A connected approach to governance, risk and compliance Our next generation legal research platform Our global tax workstation Thomsonreuters.com About Thomson Reuters Investor Relations Careers Contact Us   Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. 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