Canadian telecommunications giant Telus (T) has paused the rollout of its fibre optic network in Alberta, citing the federal government’s ban on China’s Huawei Technologies as the reason.
The delay leaves about 70,000 residents in St. Albert, Alberta without access to Telus' PureFibre home internet network. Other communities in Alberta are also impacted by the halt to the company’s fibre optic rollout.
Telus had announced plans to spend $100 million to connect more than 90% of St. Albert homes and businesses to its fibre optic network by the end of 2020.
However, the company says it has been forced to dismantle Huawei infrastructure on all of its high-speed internet antennas due to Ottawa’s ban on Huawei technology.
The federal government announced in May 2022 that it was banning Huawei from involvement in Canada's 5G wireless network, along with ZTE, another Chinese telecommunications firm.
Canadian companies have been given until June 2024 to remove or terminate 5G equipment from Huawei and ZTE.
In 2020, Telus announced it would work with Sweden's Ericsson (ERIC) and Finland's Nokia (NOK) as suppliers for its 5G network, canceling previous plans to rely on Huawei equipment.
In a statement, Telus said it is committed to keeping St. Albert residents, businesses and customers updated on the progress of its PureFibre rollout once it continues.
Other countries, including the U.S. and Australia, have also banned Huawei technology over fears that it could be used by the Chinese government for nefarious purposes such as spying.
Telus’ stock has fallen 12% in the last year to trade at $25.66 per share.
