Chinese smartphone maker Huawei says the Australian government has banned it from providing 5G technology for the country's wireless networks.
It said fellow communications firm ZTE had also been banned, both reportedly because of national security concerns.
"This is a extremely disappointing result for consumers," the company said on Twitter.
Faster data download and upload speeds are promised with 5G, which is the next stage of mobile internet connectivity.
Wider coverage and more stable connections than current 4G technology are also highlighted as benefits.
On Thursday, the Australian government said national security regulations that were typically applied to telecoms firms would be extended to equipment suppliers.
Companies that were "likely to be subject to extrajudicial directions from a foreign government" could present a security risk, it said.
The United States has previously banned Huawei from bidding for government contracts because of fears over espionage. ZTE has also had its activity restricted in the US.
Under Chinese law, companies must co-operate with the intelligence services. Analysts therefore warn that equipment produced by firms such as Huawei and ZTE could be compromised. (BBC)
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