Huawei faces security concerns in US

US concerned on ties with Chinese government and military

PTI | March 24, 2011



Facing hardship in view of security concerns in the US, Chinese telecom vendor Huawei today said the company has been able to resolve the issue in India more efficiently than in America.

The China-based telecom equipment vendor, which holds around a 2 per cent market share in the American telecom infrastructure market, is facing security-related issues from the US government because of its ties with the Chinese government and military.

"We have been able to resolve the security-related concerns in India more efficiently then we have been able to do it in America. We continue to work very diligently with the authorities to make sure they understand our equipment poses no security risk to the US or any other states or any other government.

"We have had assessments made to our softwares by various agencies to show that there are no concerns about security," Huawei Vice-President, Wireless Marketing & Product Management, Madan Jagernauth said on the sidelines of the CTIA Wireless conference here.

Last year, the company had faced a ban in India after the Home Ministry raised concerns based on intelligence inputs that telecom equipment from some countries could have spyware or malware that gives intelligence agencies across the border access to telecom networks in the country, which was resolved later.

US lawmakers had sent a letter to the Federal Communications Commission (FCC), urging it to investigate ZTE and Huawei on grounds of national security and to impose limitations accordingly last year.

In Feburary this year, Huawei Technologies had asked the US government to open an investigation into any concerns it might have about the company in order to reach an accurate conclusion over rumors that Huawei retains links with China's security services.

The move came after Huawei failed in its bid to acquire virtualisation vendor 3Leaf Systems after a US government committee voiced security concerns about the deal.

Huawei's decision to drop its deal to buy 3Leaf for USD 2 million has exposed strong security concerns over the entry of Chinese telecom companies into the American market.

Frequent cyber attacks on the US government and business targets by Chinese hackers have also undermined trust in forging partnerships with the Chinese government and businesses.

However, despite the series of setbacks, Huawei is reluctant to abandon the US market as it is one of the fastest-growing markets for the company. In 2009, Huawei entered the North American market through agreements with US communications company Cox and WiMax provider Clearwire.

Huawei's investments in research and development activities in the United States have grown by 66 per cent on average every year, reaching USD 62 million in 2010. With its price advantage, Huawei generated USD 450 million in sales in the United States last year.

 

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