Huawei’s ban affects the second-largest Australian carrier – net profit fell 76%

Since the United States banned Huawei from participating in its 5G construction, many US allies have followed suit and excluded Huawei from their domestic telecommunications market. Australia is the most active. As early as August 2018, the Australian government stated that it would ban ZTE and Huawei from participating in the construction of 5G networks in Australia, and at the same time, the company will not supply equipment for its planned 5G network.

huawei's ban will affect some companies

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In January 2019, an Australian telecommunications operator, TPG Telecom, announced that it had to give up further construction of its mobile network because of the Australian government’s ban on Huawei. The reason is that the network equipment currently used by TPG is provided by Huawei, and as such, TPG can not further lay 5G mobile network. TPG (Total Peripherals Group), is the second largest Internet service provider in Australia and the largest.

Recently, TPG released its first quarter earnings report for 2019. The financial report showed that its first-quarter net profit was A$47 million ($33.3), down 76% year-on-year. The reason for the sharp drop in net profit is because TPG will stop the construction of mobile networks. In addition, as the Australian National Broadband Network eroded the TPG market, its revenue declined. Many non-Chinese telecom operators have purchased Huawei’s equipment on a large scale for 4G networks. This means that a ban of Huawei’s equipment in certain country’s will comatose some carriers.

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