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Spark said this afternoon it had been notified by GCSB Director-General Andrew Hampton that it cannot use Huawei gear for its pending 5G mobile network upgrade.
The telco's announcement preempted any official statement from the government, though the GCSB and its minister, Andrew Little, later confirmed the development.
The decision represents a stark change in direction. For years while he was in power, former Prime Minister and GCSB Minister John Key actively encouraged our phone companies to use gear made by the Chinese company, founded by former People's Liberation Army officer turned billionaire entrepreneur Ren Zhengfei.
Under the Telecommunications (Interception Capability and Security) Act 2013 or TICSA, technology used by Spark, Chorus, Vodafone, 2degrees and other network operators for upgrades to be vetted and approved by the security agency.
The Director-General told 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.
"Under TICSA, this means Spark cannot implement or give effect to its proposal to use Huawei RAN equipment in its planned 5G network," Spark says.
Tech-specialist lawyer Rick Shera said this is the first time TICSA has been used to block telco supplier.
The GCSB's apparent move comes after reports on Friday that the US was pressuring allies to drop Huawei.
While American suspicion of Huawei is longstanding - it pre-dates President Trump - previous efforts have focussed 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.