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Tuesday, November 9, 2010

Wall Street Journal

HUAWEI AND ZTE REJECTED DUE TO SECURITY CONCERNS
Huawei and ZTE are both being barred from a major procurement by US telecom operator due to national-security concerns, reports WSJ. Although Sprint CEO Dan Hesse declined to comment on the matter, an Obama administration official told WSJ that Commerce Secretary Gary Locke had voiced concerns with Hesse during a recent phone call. The Chinese equipment-makers failed to obtain the contracts despite that their prices were lower than competitors. The Defense Department has also weighed in on the issue, with a written statement that says that “DoD is very concerned about China’s emerging cyber capabilities and any potential vulnerability within or threat to DoD networks.” Both ZTE and Huawei declined to comment on the matter.

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