The Turnbull government's decision to ban Huawei equipment from Australia's 5G networks now comes after Optus opposed the Telstra-TPG multi-carrier network (MOCN) deal.
Optus' complaint is among four documents released as part of the ACCC's ongoing investigation into the deal after it requested information last month about other options TPG may have outside of Telstra.
The presentations in question were from CEO Kelly Bayer Rosmarin [pdf] , Director of Strategy and Spectrum Management Steven Turner [pdf] , Director of Corporate and Business Operations and General Manager of Wholesale and Strategy Sales Benjamin White [pdf] and Vice President of Networks. Canagratham is them. Lambotaran [pdf].
Optus' argument is that by placing Huawei equipment on its 4G network when the ban came into effect, while Telstra did not, it has put it at a continuing competitive disadvantage, and will get worse if it continues. .
"Upgrading the site to 5G is more expensive and time-consuming for Optus than for Telstra because the existing Huawei 4G equipment must be replaced to prevent Telstra from using Huawei equipment," Rosemary Bayer said.
"Huawei's decision has given Telstra a first-hand hardware advantage and a continued cost advantage in 5G, which it fully exploits."
Optus records show that TPG was similarly affected by the Huawei ban.
But if the MOCN deal goes through, TPG will have the option to divest Huawei of its network investment without changing equipment, Optus said in a company filing [pdf]: "With the proposed transaction, TPG will find a solution to the Huawei problem." .
If TPG settles with Optus rather than Telstra, "these costs will be shared to some extent," according to the Optus document.
Implementation plans
Lambota also elaborates on the impact of the "Huawei ban".
The Telecommunications Sector Security Reforms (TSSR) of 2018, he wrote, "introduced new measures ... the ability of the government to issue directives in cases where there are serious national security concerns that cannot be resolved by other means," Lambottaram. he said.
"While neither the security regulations nor the TSSR framework indicate that Huawei 5G RAN equipment will be banned, as I understand from various discussions with Optus staff, the announcement does in fact ban the use of Huawei equipment on 5G mobile networks."
The ban prevented all 5G traffic from passing through Huawei equipment, Lambotaram said, including Huawei's Score 4G network equipment that Optus had already deployed and intended to use during the initial 5G rollout.
Lambotaram's presentation outlined two deployment models available to Optus: one will be a standalone 5G network that doesn't connect to 4G devices; Another unique design allows Optus to use Huawei's pre-deployed 4G core equipment for signaling and control messages for 5G radio access network (RAN) equipment.
"Huawei's ban basically means that MNOs [mobile network operators] cannot operate a 5G mobile network where transmissions using 5G mobile technology are always transmitted through Huawei's RAN equipment," Lamotharam said.
"It is clear to me that Optus will not be able to use any Huawei RAN equipment on its proposed 5G mobile network, including Huawei 4G RAN equipment that the network connects to when Optus provides 5G mobile services."
"If the Optus network is a 'standalone' or 'independent' 5G network, then after Huawei's ban, Optus will have to remove the Huawei 4G RAN equipment from the network and replace it with equivalent equipment provided by the supplier. It is from Huawei."
“Additionally, Optus' 4G and 5G networks use Huawei transmission equipment. This device should also be replaced.
Separate core and rim
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Optus' plan This contradicts the government's statements in 2018 when Home Secretary Scott Morrison and Communications Minister Mitch Fifield issued a press release [pdf] saying 5G would make the heart of the network indistinguishable from the outside.
"Earlier mobile networks had clear functional divisions between core and intermediate
At the edge, 5G is designed to bring sensitive tasks currently performed in a physically and logically separated core closer to the edge of the network," he said.
"So the distinction between the core and the edge disappears over time."
According to the government, third-party devices can be used to compromise network security.
When the Parliamentary Joint Committee on Intelligence and Security asked for an opinion on the TSSR, Huawei argued that the distinction between core and periphery would continue.
Their submission [pdf] “The Turnbull government has relied on flawed network architecture and technology recommendations to stop Huawei (and other Chinese manufacturers) from 5G.
According to the State Security Council, Huawei "falsely claimed that new 5G networks cannot separate core and non-core parts [RAN]".
"The difference can be clearly seen in 5G networks around the world, with Huawei providing the RAN but another vendor providing the core."
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