GCSB bans Spark from using Huawei in 5G upgrade

Photo: Reuters
Photo: Reuters
The Government's security agency has blocked Spark from using a Chinese tech firm in its 5G mobile network upgrade.

Spark said today it had been notified by the Director-General of the  Government Communications Security Bureau (GCSB) that it cannot use Huawei gear for the upgrade.

Andrew Hampton. Photo: GCSB
Andrew Hampton. Photo: GCSB

Under the Telecommunications (Interception Capability and Security) Act 2013 or TICSA, technology used by Spark, Chorus, Vodafone, 2degrees and other mobile network operators have to be vetted and approved by the GCSB.

Director-General Andrew Hampton informed Spark today that he considers Spark's proposal to use Huawei 5G equipment in Spark's planned 5G RAN would, if implemented, raise significant national security risks, the telco says.

The GCSB's apparent move comes after reports earlier this week that the United States was pressuring allies to drop Huawei.

While American suspicion of Huawei is longstanding - it pre-dates President Donald Trump - previous efforts have focused on keeping the Chinese company out of the US. Now, it's broadening its battle lines.

US officials are reportedly worried about the prospect of Chinese telecom-equipment makers spying on or disabling connections to an exponentially growing universe of things, including components of manufacturing plants.

The Wall Street Journal quoted an un-named US official who said, "There are additional complexities to 5G networks that make them more vulnerable to cyber attacks."

Spark says it has not yet had time to review the decision in detail.

"While we are disappointed with this decision, we are confident that the decision will not affect our plans to launch Spark's 5G network by 1 July 2020, subject to the necessary spectrum being made available by the New Zealand Government," Spark says.

GCSB Director-General Hampton said: "I can confirm the GCSB, under its TICSA responsibilities, has recently undertaken an assessment of a notification from Spark. I have informed Spark that a significant network security risk was identified."

Hampton said he would not comment further at this stage.

Simon Moutter
Simon Moutter

At Spark's annual general meeting on November 2, managing director Simon Moutter made an impassioned speech in support of Huawei, saying the company should be allowed to bid for 5G upgrade business unless the government could supply "incontrovertible proof" that the company was a security threat.

For its part, Huawei sought to defuse the controversy by saying it would only bid to put gear on 5G cellsites (the RAN or Radio Area Network), not the "core" or brains of a 5G network. Last week, Spark and Huawei went live with a 5G trial that they said proved the RAN could be isolated.

While the US and Australia has long-standing bans on Huawei, former New Zealand Prime Minister John Key was an active booster of the Chinese company, encouraging companies involved in the Ultrafast Broadband (UFB) rollout to consider its gear as a quality, cost-competitive auction.

Beyond the implications for New Zealand's trade relationship with China, today's decision could mean fresh scrutiny of the Huawei hardware that is sprinkled through the UFB and Rural Broadband Initiative (RBI) rollouts as well as Spark, Vodafone and 2degrees' networks.

Huawei technology has been central to 2degrees' network since the telco launched a decade ago. Last week, spokesman Mat Bolland told The New Zealand Herald that there had never been any proof tabled that Huawei was a security threat.

A Huawei ban would leave only two big telco infrastructure providers to bid for 5G work - Nokia Networks and Ericsson - which would make the market less competitive, Bolland said. Resulting price increases would ultimately be passed on to the consumer.

Spark embraced Huawei for its 4G network after Alcatel-Lucent's debacle with its 3G network upgrade, branded "XT."

Huawei NZ deputy chief executive Andrew Bowater argued that his company had a policy of full cooperation with the GCSB.  As in the United Kingdom and Canada, no issue had ever been raised with its technology he told the Herald . Now, that's changed.

 

Comments

Good idea/ we have the United states/ here/ looking and seeking/ but they are on our side/