Report: U.S. regulators weighing responses to Huawei's entrance
U.S. regulators are contemplating different approaches to Huawei's entreaties to get further involved in the U.S. market, according to a report in the Financial Times.
The report, which cited unnamed sources, said regulators with the Committee on Foreign Investment, which reviews foreign acquisitions for national security concerns, are weighing two different approaches to Huawei. One approach, the report said, is to approve a future transaction for Huawei, but insist on striking a "mitigation agreement," a series of conditions and security measures that could give regulators greater insight into Huawei's corporate structure. Huawei is a privately held company. The other view is to continue to keep Huawei from getting further enmeshed in the U.S. market, the report said.
A Huawei spokeswoman did not immediately respond to a request for comment.
According to a recent report in the Wall Street Journal, Huawei hired a raft of U.S. advisers to help it overcome security concerns. The report said Huawei has tapped several law firms that specialize in telecom, mergers and winning federal approval for sensitive international deals.
The actions come amid a flurry of activity for the Chinese vendor. According to the FT, Huawei lost a bid for 2Wire, a privately held U.S. company that makes broadband software and that was acquired by the British firm Pace for $475 million. Huawei also lost a bid for Motorola's (NYSE:MOT) wireless networks unit, which went to Nokia Siemens Networks for $1.2 billion. In both of these cases, the report said, security concerns figured into the bidding and required Huawei to offer a premium.
Huawei plans to increase its presence in North America this year by adding 600 jobs. The company already won a contract with Cox Communications for the company's 3G CDMA network, and is a supplier for Clearwire's (NASDAQ:CLWR) mobile WiMAX network. However, so far it has been shut out of deals with any Tier 1 U.S. carriers.
For more:
- see this FT article
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Comments
Huawei may focus on Sprint and T-mobile as the two companies have financial difficulty. Rumor states Huawei is getting Sprint contract.
Huawei and some Chinese companies have typical problems. They don't respect American laws. For example, they have a lot of illegal workers ( b1/b2 visa working in USA.)
But I see the same issue in China for some USA comapny, how do you comments for this?
Huawei is desperate to get in the US market, but it will be very dangerous.
Sprint is their last chance to get a 4G contract with a large carrier.
The problem is that Huawei has strong ties with the Chinese goverment. These ties are ecnomic (China gives free checks to Huawei of ~$10B to succeed) and it is impossible to compete with this anti tfree traqde approach. Another bad thing is the record on Intelectual Property Right violations by Huawei. They infringe patents, copyrights and plainly steal source code from the competition and from insider workers that helps them (spionage, stealing, forgery). Huawei does not need to invert expensive R&D because it copies a lot from others. The other big issue is that Huawei is managed by retired military peole from the People's republic of China, and these folks are comunists to the bone. The manage the company in military stile and expect submission. I wonder how would this work in an open society like the US. If Huawei wants to put up a facade US company to do bussines in the US, then the approach of management from china will not work well for US employees. Another issue is that Sprint has contracts from the US Goverment (and DoD) for usage of Sprint network, and they will loose those juicy contracts if Sprint buy netowrk equipment from Huawei.
It is really amazing: the US was leader in telecommunication, but antitrust laws and heavy regulation destroyed the whole manufacturing industry. Now US wireless carrieres no longer have a US company they can buy equipment from.
What happened with Judge Green destruction of ATT? Now the US must rely on foreign technology , with huge and unresolved security concerns, to upgrade the infrastructure. And all this under the FCC watchdog. We are in big decadence, ther is no question aboout it, and is mostly of our own doing. I hope the US Goverment stop Huawei , and applies US laws with the hardest rigor to them.
The 600 people that Huawei will hire in the US are not technology experts. Just managers and business people to represent the company in the US. Huawei has all the cheap R&D done in china, and does not need expensive engineers in the US. So the final Chinese atttack is this:
1) first started with a small company in China and stole Chinese workers from multinationals like Motorola, Lucent, Alcatel, Ericksson, Cisco.
2) Steal ideas, software, architectures, algorithms and in general intelectual property to upgrade their products quickly and cheaply.
3) get Chinese goverment money gifts to sell below cost. This money comes from the things Amaericans buy that are made in china.
4) Huawei is conditioned by the chinese goverment that drives the Huawei strategy.
5) Create a US company that buys from Huawei (all made by Chinese workers in china) and destroy the competition.
6) The Huawei US company will be a Trojan Horse for the competition.
7) Other companies cannot compete. Huawei dominates the market in the US , as it is done in Europe.
8)Chinese goverment controls the Telecomunication instrausture of the private Service Prorviders in the US.
9) US Wireless service providers do not have diversity becuase Huawei dominates the market. The race for thecnology is won by China and the US is screw up.



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