Huawei wins A$136m 4G telecoms rail contract in spite of security concerns from some Australian lawmakers
The contract award comes after the Chinese company refuted claims by some Australian lawmakers that it posed a security risk, calling the criticism “ill-informed”
Huawei Technologies, the world’s largest telecom equipment vendor, has scored an A$136 million (US$101 million) contract to build and maintain the digital radio systems that deliver voice and data services across Perth’s rail network, in spite of security concerns raised by some Australian lawmakers.
The Chinese company will make and install the fourth generation (4G) communications system for Perth’s rail network by 2021 as part of a joint venture with Australian engineering company UGL. The technology will control signalling on Perth’s expanded 180 kilometre electrified rail network, part of which will link the city with the airport.
Huawei’s Australia Chairman John Lord said the Public Transport Authority contract reinforces Huawei’s strong long-term investment focus on Australia, and pointed out that the company has been providing similar communications technology services to Sydney Trains and Ambulance New South Wales “safely and securely” for nearly a decade.
“Huawei is extending its trusted portfolio of solutions towards industry and strengthening its customer base in mission critical market segments,” Lord said in a July 6 statement posted on Huawei’s official website. Huawei won the contract over fellow Chinese company ZTE, Ericsson Australia, Optus and Japan’s Ansaldo.
The deal comes less than a month after the Shenzhen-based company refuted claims by some Australian lawmakers that it posed a security risk, calling the criticism “ill-informed” in an open letter in mid-June. It also occurs at a time when Huawei is lobbying the Australian government not to block it from supplying broadband equipment for Australia’s 5G mobile services roll-out amid concerns from US intelligence officials and local politicians that it poses a security threat. Authorities in the US remain concerned about Huawei’s alleged ties with the Chinese government.
Huawei said on Monday it has no further comment on the matter.
