Australian providers of telephone services will increase prices after the government has announced that it is forbidding Chinese companies from providing 5G mobile network access.
The decision, announced on Thursday, forces these providers to purchase equipment from rivals for a cost price of 30 percent more, resulting in a price increase for consumers, reports Fairfax Media.
That prohibition could also have another financial ripple effect if it were extended to devices made by China for Australia, such as smartphones or modems.
Huawei confirmed that it received direct coverage from the Australian government stating that it went into both ZTE Corp and security issues.
Huawei has had to deal with allegations of involvement in intelligence sharing and cyber espionage, where ASIO called the company an "extreme" threat to Australian security.
As a result, it was forbidden to get contracts during the NBN rollout.
It has argued that it would never violate the confidence of Australian customers, but the government stressed that a combination of technical security controls could not sufficiently mitigate the risk.
"While the current security controls protect us as much as possible, the new network, with its increased complexity, would make these current protections in 5G ineffective," it said in a statement.
Huawei Australia insisted that it has been providing safe and secure wireless technology for almost 15 years & # 39; in the country.
"This is a [sic] very disappointing result for consumers, "it tweeted.
"Huawei is a world leader in 5G."
A day later she issued an official statement in which the decision was "politically motivated, not the result of a fact-based, transparent or fair decision-making process".
ZTE Corp is a Chinese telecommunication equipment company that sells mobile devices in Australia via Telstra, Optus and others.
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