Washington (People’s Daily) - Chinese telecoms giant Huawei’s planned deal with US carrier AT&T to sell its smartphones in the United States has failed because of security concerns, according to media reports.
Huawei on Tuesday confirmed the reports. In a statement, Huawei said they will continue to sell smartphones through open channels and will remain committed to the American market now and in the future.
AT&T faced pressure from Congress, Reuters reported on Tuesday. Members of the US Senate and House intelligence committees sent a letter to the US Federal Communications Commission (FCC) on Dec. 20, expressing concerns about the deal.
AT&T is the second largest provider of mobile phone services in America, and Huawei is the third largest mobile phone maker in the world, which has gained worldwide popularity except the US.
The cooperation between the two giants was thought to be an excellent opportunity for Huawei to enter the American market. According to Financial Times, over 90 percent of cellphones in the US are sold through mobile network operators and AT&T’s quit is a loss for Huawei.
Recently, the Committee on Foreign Investment in the United States (CFIUS) rejected Ant Financial’s plan to buy MoneyGram International Inc. Huawei’s case again highlighted the US government’s lack of trust in Huawei and Chinese companies. Talking about Huawei and AT&T’s failed deal, CK Lu, an analyst from Gartner, said it was a trust and political issue.
