Broadband-plan telco banned in Oz

Prime Minister John Key says he's happy with Chinese telco Huawei's involvement inside the Government's ultra-fast broadband scheme, despite the corporate being banned from the same Australian project due to cyber attack concerns.

Huawei opened offices in New Zealand in 2005 and has scored major supply deals with Enable Services and Ultrafast Fibre Ltd, the Government's private partners for the ultra-fast broadband (UFB) scheme in Christchurch and the central North Island.

The Chinese company also signed an equipment deal last year with Chorus to aid roll out fibre lines within the rural broadband initiative (RBI).

Huawei's technology was used to construct 2degrees' mobile infrastructure and last year the Chinese telco won a $140 million contract to increase 2degrees' network.

However it was revealed Huawei was advised late last year that it might not tender for Australian national broadband network (NBN) contracts due to concerns about cyber attacks emanating from China.

Commenting at the issue, a spokesman for Australia's Attorney-General Nicola Roxon said the govt. had a responsibility to "do its utmost" to offer protection to the integrity of the national broadband network and the data carried on it.

Chatting with the Herald on the Nuclear Security Summit in South Korea, Key wouldn't touch upon security matters but said issues about Huawei were raised and regarded.

"We received high quality advice and we do the proper to guard New Zealand businesses and consumers where we predict that's necessary," the Prime Minister said.

Key said the UFB contract with Huawei began before Australian actions against the corporate.

He was privy to Australia's actions but had a limited knowledge at the reasons for it.

"We're happy with the present arrangements we've."

In line with the Australian Financial Review, Huawei is challenging the move "vigorously in public and due to diplomatic channels" within the country.

"Huawei sources have also hinted that the Chinese government will retaliate strongly against Australia if the ban at the company's tenders just isn't lifted," the AFR reported.

Australia's federal parliamentary interests register shows Huawei have been courting senior coalition figures and sponsoring their trips to China and Hong Kong.

Huawei corporate affairs director Jeremy Mitchell said Australia was still being used to privately owned Chinese companies and Huawei doesn't quit on tendering for NBN projects.

"It really is new territory. We see this as a setback, we're obviously disappointed but through staring at what we've done overseas, what we've done within the Uk, we will be able to installed place measures that help the Australian government consider us as a partner inside the NBN," Mitchell said.

The fibre lines laid as a part of New Zealand's UFB scheme will offer 75 per cent of recent Zealanders download speeds of at the very least 100 megabits per second by the tip of 2019.

It truly is greater than 20 times faster than the typical speeds enjoyed by most urban internet users in 2010. additional reporting: AAP

By Claire Trevett and Hamish Fletcher | Email Claire