New Zealand's intelligence agency has rejected the telecom industry's first request in the country to use 5G equipment provided by China's Huawei Technologies, citing concerns about national security.
Telecommunications services provider Spark New Zealand, which made the request, said on Wednesday it would review the reasoning before considering any further steps.
The decision comes as Western nations become increasingly wary of what they say is possible Chinese government involvement in fifth-generation mobile and other communications networks. Huawei has repeatedly insisted Beijing has no influence over it.
Earlier this year, neighboring Australia banned Huawei from supplying 5G equipment, also citing security risks. Last week, the Wall Street Journal reported the U.S. government was trying to persuade companies in allied countries to avoid Huawei.
"I have informed Spark that a significant network security risk was identified," Government Communications Security Bureau Director-General Andrew Hampton said separately on Wednesday.
Intelligence services minister Andrew Little told Reuters that Spark — whose request was part of the country's first 5G application — could work with the agency to mitigate risk. He declined to specify the concerns, citing classified information.
Huawei said in a statement that it will "actively address any concerns and work together to find a way forward", adding it has signed more than 20 5G contracts with carriers worldwide.