The potential loss of Huawei from the telco market is being seen as good for competition.
The Chinese company has written to government ministers to say it may leave the New Zealand market if it continues to be blocked from setting up its 5G equipment.
The GCSB blocked Spark using Huawei equipment for 5G late last year, citing security risks.
Technology journalist Bill Bennett told Kate Hawkesby the government won't be too bothered.
He says it's clear they're not keen to have Huawei build the network so if they go somewhere else it's not a big deal.
“The market in New Zealand only has two or three big players so removing competition may push up prices.”