Huawei stopped from working on Australia's National Broadband project

Although Huawei has been spreading itself fast and thick across Europe, Asia and India, the network company has now come up against a brick wall in Australia where it has been blocked from bidding on the country’s $37.5 billion national broadband (NBN) project. 

The “prudent decision” was outlined by Australian Prime Minister Julia Gillard who cited concerns about cyber security.

Although she wouldn’t go into too much detail as to why the Chinese company was targeted, a source close to the broadband deal told the Economic Times that the country feared attacks by China.   

The source said the NBN would endeavour to connect around 93 percent of Australian homes to superfast fibre-to-the-home internet by 2017. It is seen as the future “backbone of Australia’s information infrastructure,” meaning that security surrounding the project must be tight.

Huawei has so far bowed out of the decision gracefully with a spokesman stating that it was hopeful of playing a role in the NBN in the future.

It said it would work hard to be open and transparent to show the country that its technology was trustworthy.

The spokesman added that individuals and governments around the world were still coming to terms “with the emergence of the new China which is an innovation leader.” And although network security was an issue for all vendors, “the real risk [was] missing out on the innovation China has to offer.”

However, we doubt Huawei will be crying into its pillow for much longer as it has deals for broadband networks in Britain, New Zealand, Singapore and Malaysia.