US officials oppose Huawei's Sprint Nextel deal

Dylan Bushell-Embling
23 Aug 2010
00:00
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Daily News

Huawei's troubles in India may finally be lifting, but the Chinese vendor now faces fresh opposition over its supply to the US market.

Eight US senators have penned a letter, read by FT.com, which urges that Huawei be prevented from winning a contract to supply gear to US operator Sprint Nextel because of national security concerns.

Allegations against Hauwei in the letter include that it sold telecom gear to Saddam Hussein and the Taliban, that it has ties to the Chinese military, and that it works closely with Iranian officials.

But Hauwei has dismissed the claims, stating that it follows UN trade compliance regulations in every country in which it does business - including Iran. It also rejected claims that it does not respect intellectual property rights.

The vendor expressed disappointment to “learn that old mischaracterizations about the company still linger.”

While the move may or may not influence whether Hauwei is awarded the Sprint Nextel deal, it bodes poorly for the vendor's plan to convince US officials it should be allowed to bid for Motorola's networking division if it is sold off next year.

Indian lawmakers have meanwhile cleared the way for Huawei and other Chinese vendors to resume equipment sales in that nation.

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