Huawei, a leading telecommunication equipment company from China, is struggling to persuade Australian politicians that the technology of the company is trustworthy. Huawei initiated this mission as Australia is in the process to select the companies for constructing a 5G wireless network.
In 2012, Huawei was not permitted to bid for the National Broadband Network (NBN) of Australia because of the concerns related with the cyber security raised by ASIO, an intelligence agency of Australia. As per the latest updates, this year also it is almost assured that Huawei will not be allowed to supply equipment to the 5G network for the same reasons.
According to the Australian Financial Review, recently the company sent a letter to MPs and senators of Australia and argued that there will be an increase in the cost if the country excludes the company. Further, the company added that this action will also jeopardize its operations in Australia.
The letter added that the complete exclusion of Huawei from 5G in Australia will be like the elimination of the company from the entire Australian market. The company further proclaimed that this will not be in the benefit of Australia also. Huawei in the letter asserted that the increase in the competition will not only allow for cheaper prices and also it will offer a better access to the latest technologies and innovations.
This letter is signed by John Lord, Chairman along with two company directors of the company. It also stated that concerns that Huawei being a national security risk are ill-informed and these statements are not based on facts.
On a related note, Huawei recently announced that the company is closing its Chennai plant. This closure is the result of the vast drop in the demands for equipment and services of the company. It is proclaimed that this huge drop was due to a rapid consolidation in the telecom market of India.