Australian government bars Huawei and ZTE from 5G contracts over espionage fears

5G networks introduce new security risks, warns Australian government

The Australian government has today announced a ban on Huawei and ZTE supplying hardware to the country's 5G networks, citing national security concerns. The ban comes just one day before the Australia kicks-off its 5G bandwidth auction.

The government has cited key differences in the way in which 5G operates compared to previous generations of mobile technology, making them more vulnerable to untrusted actors with privileged network access.

That, combined with the fear that Huawei and ZTE could be legally directed by the Chinese government to use their access to communications networks to further state interests has persuaded the Australian government - part of the Five Eyes security pact with the US - to act.

In a joint statement, Mitch Fifield, Australia's Minister for Communications and Treasurer Scott Morrison said: "The government considers that the involvement of vendors who are likely to be subject to extra-judicial directions from a foreign government that conflict with Australian law, may risk failure by the carrier to adequately protect a 5G network from unauthorised access or interference.

"Carriers may still need to apply controls regardless of the vendor they choose. These controls would not displace existing cybersecurity practices or business risk mitigations."

The ban is contained within new guidelines.

The statement continued: "This new architecture provides a way to circumvent traditional security controls by exploiting equipment in the edge of the network - exploitation which may affect overall network integrity and availability, as well as the confidentiality of customer data. A long history of cyber incidents shows cyber actors target Australia and Australians.

"The government has found no combination of technical security controls that sufficiently mitigate the risks."

In response, Huawei described the decision as an "extremely disappointing result" and added that it has "safely and securely delivered wireless technology in Australia" for almost 15 years.

Vodafone Australia, too, claimed that the decision, made late in the 5G bidding cycle, had caused uncertainty.

"This decision, which has been dropped on the eve of the 5G auction, creates uncertainty for carriers' investment plans," claimed Vodafone's statement. It continued: "This decision is a significant change, which fundamentally undermines Australia's 5G future, and we will consider what it means for our business."

The Australian 5G ban comes after US President Trump signed an order banning government staff and contractors from using smartphones and other devices made by Huawei and ZTE. A number of other Chinese companies, including CCTV maker Hikvision, were also covered by the ban.

Over the past year or so, Australian politics has been subject to claims that lack financing rules leaves the country wide open to foreign cash exerting influence on political parties; in particular, from Chinese companies, many of which have close ties to China's government.

The Chinese government responded to the claims by suggesting that they were racist and paranoid.