Identifier
Created
Classification
Origin
08CANBERRA1291
2008-12-18 06:25:00
CONFIDENTIAL//NOFORN
Embassy Canberra
Cable title:  

BROADBAND ALLEGATIONS - CHINESE TELCOM

Tags:  ECPS AS 
pdf how-to read a cable
P 180625Z DEC 08
FM AMEMBASSY CANBERRA
TO SECSTATE WASHDC PRIORITY 0715
INFO AMEMBASSY BEIJING 
AMEMBASSY SINGAPORE 
AMEMBASSY WELLINGTON 
AMCONSUL SYDNEY 
AMCONSUL MELBOURNE 
AMCONSUL PERTH
C O N F I D E N T I A L CANBERRA 001291 


NOFORN
SIPDIS

E.O. 12958: DECL: 12/18/2018
TAGS: ECPS AS
SUBJECT: BROADBAND ALLEGATIONS - CHINESE TELCOM
MANUFACTURER HUAWEI A VENDOR?

REF: CANBERRA 1277

Classified By: DEP ECONCOUNS W ALBRIGHT, REASONS 1.4 B, D

C O N F I D E N T I A L CANBERRA 001291


NOFORN
SIPDIS

E.O. 12958: DECL: 12/18/2018
TAGS: ECPS AS
SUBJECT: BROADBAND ALLEGATIONS - CHINESE TELCOM
MANUFACTURER HUAWEI A VENDOR?

REF: CANBERRA 1277

Classified By: DEP ECONCOUNS W ALBRIGHT, REASONS 1.4 B, D


1. (C/NF) Summary. A major Australian daily ran an article
today reporting that Optus was believed to have included
China's Huawei Technologies as a vendor in its bid for the
National Broadband Network (NBN) and claiming it could
threaten Optus' bid. The GOA is conducting a review of all
NBN bids that will include looking at national security.
Privately, the GOA told Embassy they are aware of issues
related to Huawei and will look at this closely during the
review. End summary.


2. (SBU) Today the national newspaper "The Australian" ran an
article (headline: "Chinese Spy Fears on Broadband
Frontrunner") reporting that the presumed frontrunner
(following Telstra's abrupt ouster from the bidding, ref A)
for the National Broadband Network, Singtel's Australian
subsidiary Optus, was believed to have proposed involving
Chinese telecommunications equipment manufacture Huawei
Technologies as a vendor in its bid. "The Australian" claims
this could threaten the Optus bid on national security
grounds. Optus had no comment but did say they worked with
Huawei in their test lab. The Department of Broadband,
Communications, and the Digital Economy (DBCDE) has appointed
a committee headed by its Secretary, Patricia Scott, to
assess each of the bids and will recommend a winner in late
January; one of the factors the panel will consider is the
relative national security risks of the proposals.


3. (C/NF) Econoff met today with the office for cybersecurity
at the Attorney General's Department (AGD),which is
conducting the "real" national security review of the NBN
bids, which will be presented to the GOA in by mid-January
but (unlike the Scott report) will not made public. Director
Lionel Markey told econoff that they were always aware there
would be "contention" about components for the NBN. AGD is
consulting with a range of Australian government agencies,
including the Defence Signals Directorate (DSD) and the
Australian Security Intelligence Organisation (ASIO).
Although he could not confirm whether or not Huawei was
included in Optus' bid due to strict GOA guidelines
concerning disclosure of information related to the NBN
tender process, Markey said the GOA was well aware of issues
related to Huawei. He indicated that GOA agencies would
likely contact USG counterparts for further information. AGD
has wide latitude in how it prepares its report; they could
for example tell a bidder that most of their bid is
acceptable on security grounds but the bidder would have to
change specified elements of the bid to pass.


4. (C) Comment: The NBN process gets even uglier. There is
speculation that Telstra leaked this story, coming so soon
after Telstra's bid was disqualified; a Telstra official told
econoff in mid-November that Optus would use Huawei and
implied that would be a security risk for Australia. Others
speculate it could be from competing equipment manufacturers
seeking part of the A$4.5 billion pie. In any case, if DBCDE
doesn't select the Optus bid for the NBN, this could give
Optus another reason to cry foul.

MCCALLUM