TPG drops mobile network rollout over Huawei ban

Company News

by Anna Napoli

TPG Telecom's (ASX:TPM) plan to build Australia's mobile network has come to an end following the Government's ban on using 5G equipment from Chinese company, Huawei.

In a statement to the ASX this morning TPG said the principal vendor selected for use in the small-cell network was Huawei and the government's decision to ban Chinese providers from supplying 5G networks has meant it "does not make commercial sense" to continue.

TPG says it has already incurred costs of around $100 million in the rollout.

The decision comes after the ACCC postponed making a decision on whether to block a merger between TPG and Vodafone Hutchison Australia.

Shares in TPG Telecom (ASX:TPM) are trading 1.01 per cent lower at $6.89.
 

Anna Napoli

Finance News Network
Anna joined FNN February 2018 and also works with Channel 7 as a freelance producer. Anna has also worked as a lawyer and lecturer. She has also presented news updates for interstate news with Southern Cross Austereo.