U.S. lawmakers urge AT&T to cut commercial ties with Huawei

Daily News Article   —   Posted on January 17, 2018

From Reuters .com. Reprinted here for educational purposes only. May not be reproduced on other websites without permission from Thomson Reuters.



Background

What is Huawei? (from a 2012 WSJ article)

  • Chinese company Huawei (pronounced WAH-way) has become the world’s second largest producer of network equipment – the transmitters, base stations and routing gear that connects calls and cellphone traffic.
  • Huawei climbed to the top by selling low-cost gear, quickly surpassing industry stalwarts like Nokia, Siemens, Alcatel, Lucent and Motorola. The competitive pressure forced the industry to consolidate underneath market leader Ericsson. Alcatel bought Lucent, Nokia and Siemens merged their infrastructure businesses, and a hobbled Motorola sold itself to Nokia Siemens.
  • Huawei has faced regular claims that its climb was aided by stolen intellectual property.
    -Cisco sued Huawei in 2003, and people interviewed by the company for jobs said they were quizzed extensively about their work.
    -In 2010, Motorola sued the Chinese company alleging it engaged in an elaborate plot involving former employees and a shell company to steal cellular network technology. Huawei denied the claims, and the companies later settled.
  • Starting in 2012, Huawei was taking on the smartphone market with low-cost phones using Google Inc.’s Android operating system.
  • Though new to the business, Huawei held a 2.6% share of the worldwide mobile phone market at the end of the second quarter, ahead of more established competitors like HTC, Motorola and BlackBerry maker Research In Motion.
  • The phones have found a niche in the U.S. market, where they’re sold by carriers like MetroPCS and Leap that specialize in month to month contracts.