Huawei Blocked From Australian Broadband Deal

Chinese telecoms giant Huawei has been given the cold shoulder when it comes to Australia's National Broadband Network.

The company was told that it should not attempt to bid for the major broadband contract, a £24 billion scheme which aims to hook up the majority of Australian households to super-fast broadband.

The reason for the action? A BBC report cites the Australian Financial Review which talks about the security concerns of awarding the contract to Huawei. That's a reaction the Chinese company is familiar with, the same concerns being aired last year in this country when there was talk of Huawei providing a mobile network for the London underground.

Huawei's reputation for having links with the Chinese government and military has made both the US and UK nervous of any potential espionage risk, but the company denies there's any truth in this.

Australian Prime Minister Julia Gillard commented: "The National Broadband Network is a huge infrastructure project and you would expect that as a government we would make all of the prudent decisions to make sure that that infrastructure project does what we want it to do and we've taken one of those decisions."

Huawei's director of corporate affairs in Australia said the firm was "disappointed", but would continue to find ways to assure folks of the security of its technology.