Huawei Technologies Co has been excluded from bidding in the 36 billion Australian dollar (US$37.6 billion) National Broadband Network over reported concerns about cyberattacks from China.
"Huawei''s business in Australia is not reliant on the NBN [National Broadband Network]," said Jeremy Mitchell, the company's corporate affairs director in Australia, in a statement.
"While we're obviously disappointed by the decision, Huawei will continue to be open and transparent and work to find ways of providing assurance around the security of our technology," Huawei said in a separate statement. "While network security is an issue for all vendors, the real risk is missing out on the innovation China has to offer."
According to The Australian Financial Review newspaper the government late last year told Huawei not to bid for supply contracts for the network, Australia's largest infrastructure project. The project aims to connect 93% of Australian homes and businesses to the Internet with optical fiber.
It all believed to have started last year when the reports of the computers used by Prime Minister Julia Gillard, then foreign minister Kevin Rudd and several other government ministers being hacked by Chinese intelligence services were widely covered by the Australian media.