Lawmakers Urging AT&T to Cut Remaining Ties to Huawei

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Lawmakers Urging AT&T to Cut Remaining Ties to Huawei

U.S. Representative Michael Conaway has proposed a new bill (via TechCrunch) that would ban the U.S. government "from working with service providers that use any equipment from [Huawei or ZTE] for security reasons".

And earlier this month, the USA government blocked the $1.2 billion sale of money-transfer service Moneygram to Ant Financial, an affiliate of Chinese e-commerce giant Alibaba.

Given these concerns with Chinese companies and the fact that phones from Huawei, ZTE, Xiaomi, OnePlus, Motorola, TCL, Apple, and others are made in China, we wanted to see what other options people may have for phones made outside of China. The US also isn't the only country to worry about the companies: the Australian government upheld a prohibition in 2013 that barred Huawei from bidding on work on the country's National Broadband Network.

Citing two unnamed congressional aides, the Reuters report also indicated that lawmakers want AT&T to scuttle its collaboration with Huawei over standards for the next generation of wireless known as "5G" and to stop selling Huawei phones through AT&T's discount subsidiary Cricket Wireless. Under the deal, the company would be able to sell its new flagship Mate 10 Pro phone in the U.S. through AT&T.

AT&T walked away from a smartphone partnership with Chinese electronics giant Huawei due to pressure from US lawmakers, according to a new report.

At the start of the month, the carrier binned plans to sell Huawei handsets to customers when members of Congress complained about the idea to federal regulatory bodies.

It was allegedly this same pressure, along with some warnings from federal regulators, that forced AT&T to abandon its deal with Huawei to bring its mid-range mobile handsets over to the U.S.

AT&T and other telecom giants are being warned to avoid doing business with Chinese hardware manufacturer Huawei if they want to be able to secure government contracts. According to two congressional aides, USA lawmakers are taking steps to hamper any plans by China Mobile Ltd.to extend their telecom operations to the US, over similar fears of over national security.

During 2012, both ZTE Corp and Huawei were investigated by the USA about whether equipment from the two provided any opportunity for threatening critical infrastructure in the US, which Huawei has always denied. Due to this bill, Huawei has already lost their deal to AT&T resulting in the company's CEO to go off script at CES presentation.

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