SoftBank Group Corp's Japanese telecom unit selected Nokia Oyj and Ericsson AB as vendors for its next-generation wireless network, excluding long-time supplier Huawei Technologies Co.
President Donald TrumpGs administration has targeted Huawei for months, first encouraging allies to ban the Chinese company's equipment from their networks and then putting Huawei on an export blacklist that prohibits it from buying American software and components.
Australia and New Zealand have prohibited Chinese gear from their networks, while Japan has said it will exclude equipment with security risks without making an official decision on Huawei. Local media have reported the country's top three carriers G NTT Docomo Inc., SoftBank and KDDI Corp. G will shun Huawei and ZTE.
The phone companies are also scrapping plans to sell Huawei handsets as the impact of a U.S. supplier ban spreads. The Chinese company didn't immediately respond to a request for comment.
At an earnings briefing in February, SoftBank Group Chief Executive Officer Masayoshi Son said it would cost about 5 billion yen ($46 million) to replace existing Huawei gear in its network. At the time, Son said the company is considering all options for 5G equipment.