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Tuesday, August 24, 2010

Financial Times
REPUBLICANS CALL TO BLOCK HUAWEI DEAL WITH SPRINT
FT reports that seven Republican Senators, led by Jon Kyl, have issued a letter to the administration warning that Huawei is a national-security threat, and that the Chinese telecom titan should not be allowed to enter into an agreement with Sprint Nextel. The company could be funded by, and working on behalf of, the Chinese military, Kyl warned in the letter. Huawei responded that it is “disappointed to learn that old mischaracterizations about the company still linger”.

ZTE GROWS RAPIDLY DESPITE FEARS OVER SECURITY

ZTE is well-positioned to become one of a few Chinese global companies, writes FT. The telecom equipment supplier wants to differentiate itself from Huawei, claiming that it is “more transparent and less aggressive”. Just like Huawei, ZTE has seen its business growth obstructed by worries about its home country, and its state-controlled ownership. On the plus side for ZTE and Huawei, non-Chinese operators find them more willing to customize networks, giving the Chinese companies an advantage over their western rivals, continues FT. ZTE just recently won a EUR200 million contract to supply Telenor with mobile infrastructure in Hungary, signaling the growing strength of Chinese suppliers despite efforts to stifle them on the basis of security concerns.

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