Home Business Telecommunications T-Mobile-Sprint merger likely after deal to exclude Huawei
T-Mobile-Sprint merger likely after deal to exclude Huawei Pixabay

American companies T-Mobile US and Sprint have cut a deal with US national security authorities to get a proposed merger approved, by agreeing to put a brake on using equipment from Chinese telecommunications giant Huawei.

Reuters reported that the US Government had been hard at work trying to convince Deutsche Telekom, the majority owner of T-Mobile, to drop Huawei as a supplier.

Sprint and T-Mobile agreed to the merger in April. Sprint's majority owner is the Japanese company SoftBank that has worked with Huawei.

The merger between the third and fourth biggest wireless carriers in the US needs the approval of the US Committee on Foreign Investment.

The US has banned the use of Huawei equipment in its 5G networks, claiming that the company can be a conduit for spying by Beijing. Huawei has repeatedly denied that it can be forced to indulge in espionage.

Australia and New Zealand have both followed the US lead and banned Huawei from roles in their respective 5G rollouts.

Last month there were reports that the US was stepping up the pressure on its allies to give the cold shoulder to the Chines firm which is the world's biggest supplier of telecommunications equipment.

On Thursday, the Japanese news agency Nikkei reported that the SoftBank Group planned to replace 4G network equipment from Huawei with equipment from Nokia and Ericsson.

Huawei has been thrown into the centre of the ongoing US-China trade row after its chief financial officer, Meng Wanzhou, was arrested by Canada on 1 December, due to her alleged involvement in sanctions busting through the sales of US products to Iran.

US President Donald Trump has said he may use Meng as a bargaining chip to obtain a better deal with China.

iTWire has contacted Huawei for comment.

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Sam Varghese

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Sam Varghese has been writing for iTWire since 2006, a year after the sitecame into existence. For nearly a decade thereafter, he wrote mostly about free and open source software, based on his own use of this genre of software. Since May 2016, he has been writing across many areas of technology. He has been a journalist for nearly 40 years in India (Indian Express and Deccan Herald), the UAE (Khaleej Times) and Australia (Daily Commercial News (now defunct) and The Age). His personal blog is titled Irregular Expression.

 

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