A US Government report released yesterday recommends companies avoid sourcing network equipment from Huawei Technologies and ZTE Corp because they pose a national security threat to the United States.

Huawei is one of the companies involved in rolling out the Government's ultra-fast broadband network.

Labour's Clare Curran says NZ security agencies warned John Key in 2010 there was no guarantee NZ's broadband infrastructure would not be compromised if Huawei was awarded the contract. The Labour Party said the Government needed to take the US report seriously.

Chinese telecom firms Huawei and ZTE have denied US charges that some of their equipment has been installed with codes to help spying. They have been accused of using these codes to relay sensitive information back to China.

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