Large US wireless providers, such as AT&T, have been careful to avoid going through China’s Huawei to buy telecommunication equipment, and more recently have been forced to cut any ties whatsoever. A highly anticipated deal for AT&T to sell Huawei devices through its service plans, for instance, was nixed at the last moment early this year under political pressure.
Washington’s stated fears about Huawei-linked cyber-espionage has even torpedoed deals that have no direct connection with Huawei, such as Singapore-based Broadcom’s deal to acquire Qualcomm.
New legislation proposed on Monday by the Federal Communications Commission will make it even harder for Huawei to do business in the US. Small American telecoms providers will likely be collateral damage.
As The Wall Street Journal reports, “many regional American providers of wireless, TV and internet services have flocked to Huawei, attracted by what they say are Huawei’s cheaper prices, quality products and attentive customer service.”
“Meanwhile,” the article goes on, “a congressional bill with some bipartisan support aims to prohibit carriers with any substantial amount of installed Chinese telecom equipment from federal-government contracts.”
Some in the industry doubt the veracity of accusations of espionage.
“Our margins are pretty thin,” said Joe Franell, chief executive of Eastern Oregon Telecom. “If you start dictating what kind of equipment I can use, it tips the scales.” He added that the new legislation seemed to be driven by nationalism and protectionism, not by concerns of spying. ”I’m not going to rework my whole business plan based off a rumor or an unsubstantiated allegation.”
There are very credible studies by serious researchers from more then one country that detail the integrated spying in government owned Chinese businesses if you spend the time to read them. Taiwn is a particular victim especially in Africa. And the USA businesses have been countlessly hacked by sources in China, Russia, North korea. Iran and who knows where else. You can choose to ignore these incidents. I live here so I don’t..
The masters of espionage cannot sleep in their beds without worrying about who else is spying on them.
Can we at least be a little more factual. Worries about Hwawei is because of "links" to the Chinese government NOT owned by the Chinese government. If one subscribes to conspiracy theories all the time, perhaps China should accuse Microsoft of intentionally developing such crappy OS full of security holes so that NSA would be allowed to exploit it.
Some doubt the accusations of espionage. Well, that’s it then. Forget it. Ignore the espionage Chinese government owned firms engage in as a common part of doing business…