The decision comes a few weeks ahead of the country's 5G auction.
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Orange and Proximus will use Nordic network equipment instead.
The spectrum will be auctioned off by the FCC once services rules are finalised.
Huawei continues to be on the US Entity List, however.
The proposal incentivises satellite companies to accelerate their timeframes for freeing up the spectrum.
Mixed reality use cases relying on 5G can be accessed by consumers, but the infrastructure is still yet to come, Optus 5G head says.
Telcos have until mid-February to put in a proposal for the two available licences.
The company bribed Chinese government officials for at least 17 years.
It is Huawei's first 5G research centre in Europe.
It is the first time 5G use cases have been demonstrated in the country, the companies said.