Today in Canberra, TPG Telecom said that it had stopped the rollout of what would have been Australia’s 4rth biggest mobile network as of Australia’s government ban on Chinese biggest smartphone brand Huawei which would have been the major equipment seller.
According to TPG’s Statement said that the upgrade path has now been blocked. Not only Huawei but Australia’s government also blocked ZTE Corp, from its 5G network due to security concerns. The Australian government said that the involvement of the company likely to be subject to extrajudicial directions from a foreign government.
Numerous governments have been examining Huawei’s links to the Chinese government. The US Department of Justice, on the other hand, unsealed criminal charges Monday against Huawei – 2 of its subsidiaries and a top executive who are accused of misleading banks about Huawei’s business and violating US sanctions.
Furthermore, Huawei is being charged in a separate case with stealing trade secrets from T-Mobile. That is what federal prosecutors said.
The federal prosecutors are seeking to banish CFO of Huawei Mrs. Wanzhou Meng and allege she committed fraud by misleading banks about their business with Iran. The government arrested her in Canada on December 1st, 2018.
Coming back to TGP, it had explored other options but concluded that, it doesn’t make any sense to invest any further shareholder funds in a network which can’t be upgraded to 5G.
Mr. David Teoh (TPG’s Executive Chairman) said that,
“It is extremely disappointing that the clear strategy the company had to become a mobile network operator at the forefront of 5G has been undone by factors outside TPG’s control”.
According to the Analysts, TPG’s abandonment of its mobile network plan could be focused on a deal to merge with Vodafone Hutchison Australia. It’s the 3rd biggest telecommunications provider all over Australia.
