US number three cellco Sprint Nextel has rejected bids for an equipment manufacturing contract worth billions of dollars from Huawei and ZTE.
This is despite the two Chinese vendors tendering lower bids than the other hopefuls, Alcatel-Lucent, Ericsson…
US number three cellco Sprint Nextel has rejected bids for an equipment manufacturing contract worth billions of dollars from Huawei and ZTE.
This is despite the two Chinese vendors tendering lower bids than the other hopefuls, Alcatel-Lucent, Ericsson and Samsung Electronics.
The rejection follows a letter sent in October by Republican senators Jon Kyl and Susan Collins, independent senator Joseph Lieberman and Republican representative Sue Myrick to FCC chairman Julius Genachowski outlining their concerns over Huawei’s alleged links with the Chinese military.
According to the Wall Street Journal, Sprint is now renegotiating the tender with Alcatel, Ericsson and Samsung hoping that they will lower their bids. The paper also said that Dan Hesse, CEO of Sprint, was summoned for a meeting with the US authorities – who although they stopped short of instructing Sprint to reject the Chinese bids, made their security concerns and the implications of a deal very clear.
Sprint declined to comment. Huawei was unavailable for comment at the time of going to press.
