Huawei to build security evaluation center in Australia

CANBERRA - Huawei Australia Wednesday called for setting up a cyber security evaluation center for Australia to allow vendors, operators and governments to work together to find ways to enhance cyber security.

John Lord, chairman of the Australian division of the Chinese telecom equipment firm Huawei, addresses the National Press Club in Canberra October 24, 2012. Huawei Technologies Co Ltd pledged on Wednesday to increase its transparency to counter security concerns, proposing to set up a cyber security evaluation center in Australia. [Photo/Agencies]

In a speech to National Press Club in Canberra, Huawei Australia Chairman John Lord said the center is to test the security credentials of technologies being implemented into critical infrastructure projects.

"As information and communications technology plays an increasingly significant function in critical infrastructure projects around the world, all nations will need to take a step in this direction at some point," Lord said.

With the center, all equipment implemented into major or critical Australian networks can be subjected to the same thorough security assessment, he said.

"Huawei is willing to offer complete and unrestricted access to our software source code and equipment in such an environment, and all other vendors should be subject to the same high standard of transparency."

Huawei Australia was banned earlier this year from tendering in Australia's National Broadband Network (NBN) project over security reasons. Recently, the United States issued a congressional report, saying Huawei and ZTE, another Chinese telecom company, poses a security threat to the U.S. and should be barred from U.S. contracts and acquisitions.

Lord called the U.S. House of Representative report " protectionism," not security.

He said one way of overcoming the "rhetoric" coming out of the U.S. would be to increase company transparency in Australia.

He admitted that Huawei has done a poor job of communicating to general public and governments since the company has been mostly a business-to-business one. Huawei has recognized in the past five years that it must take great strides towards openness and transparency.

Lord said the Huawei Australia board was in initial discussions about a listing on the Australian Securities Exchange. But he added a listing in Australia would not necessarily be a "panacea" for its difficulties.

Lord said Huawei, who became the world's largest telecoms vendor by revenue judged by the company's first-half results this year, is encouraging its shareholding participation.

There were 60,000 employee shareholders, all of whom lived in China. The initial focus was on making all of Huawei's 140,000 employees worldwide shareholders.