Sprint and SoftBank Vow Not To Use Huawei Equipment
In October 2012, SoftBank acquired 70% of Sprint for $20.1 billion. Sprint Nextel and SoftBank has assured lawmakers that they will not be using equipment created by Huawei Technologies in China on Sprint’s network. The chairman of the House Intelligence committee, Mike Rogers, reported this news yesterday.
Sprint Nextel and SoftBank also reported that they will be replacing Huawei products on Clearwire’s networks, a high-speed data service provider that Sprint is planning to acquire.
Both companies are going to make similar assurances to the Committee on Foreign Investments in the U.S. This Committee business transactions that could be of a national concern. “I am pleased with their mitigation plans, but will continue to look for opportunities to improve the government’s existing authorities to thoroughly review all the national security aspects of proposed transactions,” said Rogers in a statement.
SoftBank, one of the largest cellphone service providers in Japan currently uses equipment from Huawei and ZTE on their networks. The U.S. government has flagged Huawei and ZTE for potentially being connected malicious systems.This article was written by Amit Chowdhry. You can follow me at @amitchowdhry or on Google+ at +AmitChowdhry