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Britain's BT Group said on Wednesday it was removing Huawei Technologies' equipment from the core of its existing 3G and 4G mobile operations and would not use the Chinese company in central parts of the next network.
New Zealand and Australia have stopped telecom operators using Huawei's equipment in new 5G networks because they are concerned about possible Chinese government involvement in their communications infrastructure.
Huawei, the world's biggest network equipment maker ahead of Ericsson and Nokia, has said Beijing has no influence over its operations.
BT said Huawei's equipment had not been used in the core of its fixed-line network, and it was removing it from the core of the mobile networks it acquired when it bought operator EE.
Huawei Technologies Co Ltd said it was seeking clarification from New Zealand after the country's intelligence agency rejected the telecommunication industry's first request to use the Chinese firm's equipment in its planned 5G mobile network.Huawei said it had not had formal contact with the Government Communication Security Bureau (GCSB), which has cited national security concerns in declining a proposal from telecoms operator Spark New Zealand to build its 5G network using Huawei equipment."Huawei is seeking an urgent meeting with the relevant ministers and officials to understand the government's position and get clarification of the process from here," Huawei's New Zealand deputy managing director Andrew Bowater said in an emailed statement on Thursday.NZ intelligence agency rejects first Huawei 5G bid, cites securityHe said New Zealand had not presented any evidence of wrongdoing and Huawei rejected the notion that it threatened local businesses "in any way"."Huawei would welcome the opportunity to actively address any concerns and work together to find a way forward," Bowater said.Western governments are increasingly wary of what they say is possible Chinese state involvement in fifth-generation mobile and other communications networks. Huawei has insisted Beijing has no influence over the company.Intelligence services minister Andrew Little has said that Spark - whose request was part of the country's first 5G application - could work with the agency to mitigate risk. He declined to specify the concerns, citing classified information.Huawei has done business in New Zealand since 2005, providing equipment for the country's 4G mobile system network and earlier this year testing 5G technology with Spark."Huawei..has always worked in good faith with the government and other industry players," Bowater said.Little and intelligence officials have said that 5G networks have different security concerns to previous generations of mobile networks because it was difficult to restrict vendors considered high risk to less sensitive parts of the network. 
Huawei seeks clarification after NZ intelligence agency rejects 5G bid
It said the process was to bring the EE networks into line with the rest of its business rather than a change of policy.
"In 2016, following the acquisition of EE, we began a process to remove Huawei equipment from the core of our 3G and 4G networks, as part of network architecture principles in place since 2006," a BT spokesman said.
He said the company would apply the same principles to its next-generation mobile networks.
"As a result, Huawei have not been included in vendor selection for our 5G core," he said.
"Huawei remains an important equipment provider outside the core network, and a valued innovation partner," he added.
New Zealand's intelligence agency has rejected the telecom industry's first request to use 5G equipment provided by China's Huawei Technologies Co Ltd , citing a security risk.Telecommunications services provider Spark New Zealand Ltd , which made the request, on Wednesday said it would review the reasoning before considering any further steps.The decision comes as Western nations become increasingly wary of what they say is possible Chinese government involvement in fifth-generation mobile and other communications networks. Huawei has repeatedly insisted Beijing has no influence over it.Earlier this year, neighbouring Australia banned Huawei from supplying 5G equipment, also citing security risks. Last week, the Wall Street Journal reported the U.S. government was trying to persuade companies in allied countries to avoid Huawei."I have informed Spark that a significant network security risk was identified," Government Communications Security Bureau Director-General Andrew Hampton said separately on Wednesday.Intelligence services minister Andrew Little told Reuters that Spark - whose request was part of the country's first 5G application - could work with the agency to mitigate risk. He declined to specify the concerns, citing classified information.Huawei did not respond to a Reuters request for comment.TOTAL ACCESSHuawei has been involved in other telecommunications systems in New Zealand such as its 4G mobile network, and is investing NZ$400 million ($271.88 million) into research and development.Little said each decision regarding telecom technology was made separately under telecom and security legislation."The difference between 5G networks and conventional 4G and 3G networks is the configuration of the technology," Little said. "With 5G technology, every component of the 5G network means every part of the network can be accessed."That echoed Australian concerns that, with 5G, it was difficult to confine vendors considered high risk to a network's less sensitive parts.Spark rival 2degrees said it had noted the decision and was "seeking clarity on it"."The importance of multiple vendors to deliver price competitiveness still stands, so if this announcement has a similar impact on 2degrees it will be a real disappointment for competition," 2degrees corporate affairs chief Mathew Bolland told Reuters.Vodafone New Zealand Ltd declined to comment on the matter. 
NZ intelligence agency rejects first Huawei 5G bid, cites security
The chief of Britain's foreign intelligence services said this week that 5G reliance on Chinese technology was something Britain needed to discuss.
Huawei has been in Britain for more than 17 years, with its equipment checked and monitored by a special company laboratory overseen by government and intelligence operators.
Huawei said it had been working with BT for almost 15 years, and since the beginning of its partnership, BT had been operating on a principle of different vendors for different layers of its network.
"This is a normal and expected activity, which we understand and fully support," it said in a statement.
It said it began working with EE in 2012, and had supplied the mobile operators with 3G and 4G network solutions, including core network equipment.
"We have never had a cyber security-related incident," it said. "Huawei has a robust cyber security assurance system and a proven track record."