Verizon won't sell any Huawei phones, including the new flagship Mate 10 Pro, because of pressure from the U.S. government, anonymous sources told Bloomberg yesterday. "The U.S. market presents unique challenges for Huawei, and while the Huawei Mate 10 Pro will not be sold by U.S. carriers, we remain committed to this market now and in the future", said the company in a statement earlier this year following AT&T's decision for to pull out of a deal.
Bloomberg's own report also referenced the subject of Chinese spying and 5G networks, bringing up the fact that "U.S. security agencies and some lawmakers fear that 5G phones made by companies that may have close ties to the Chinese government could pose a security risk".
Huawei and Verizon declined to comment.
Had the Verizon-Huawei merchandising proposal come to fruition, it could have helped Huawei increase its market share in the U.S.
VERIZON HAS REPORTEDLY followed in the footsteps of AT&T by cancelling plans to offer Huawei smartphones in the U.S. amid government fears of "Chinese espionage".
While Huawei's devices are still available from third party retailers and will work on both Verizon's and AT&T's networks, United States customers generally purchase their devices through their carriers as opposed to off-contract.
Earlier speculation claimed that USA lawmakers were anxious about the potential ties Huawei might have with the Chinese government. The company was making a major push to sell phones into the USA this year.
Huawei is not the only company which is being abandoned by the USA carriers.
Huawei is the third largest smartphone manufacturer in the world and China's largest maker of telecommunications equipment.
At CES 2018, Huawei CEO Richard Yu reflected on his company's troubles with US wireless carriers.
In fact, the province of British Columbia and national carrier Telus are now collaborating with Huawei on 5G network tests.
One Verizon partner that asked not to be named said that Huawei's hard history in the U.S.is influencing the USA -based carriers' decisions on whether or not to carry Huawei's products.
Any such national effort would make US 5G leadership not just an economic goal, but also a national security objective, creating "a potentially powerful new dimension to the 5G debate, perhaps with unforeseen consequences", Paul Gallant, a Washington-based analyst with Cowen & Co., said in an note. The government is reportedly concerned that a smartphone with Chinese 5G networking equipment could enable the Chinese government to gain access to USA network activity.