Displaying items by tag: ZTE
Chinese telecommunications behemoth Huawei is preparing to take the US government to court in an effort to the challenge the decision taken by the US congress which prohibits federal agencies from using its equipment.
The New York Times is reporting that the embattled Chinese vendor is now preparing to file a lawsuit against that legislation which was passed through the US House of Representatives.
Sources close to Huawei have leaked that the telecommunications company plans to argue the measure amounts to a so-called bill of attainder, which penalizes the vendor for a penalty without the benefit of a trial, which is illegal under the US Constitution.
The US has adopted a very aggressive approach towards Huawei and ZTE, and the latter was almost pushed the point of bankruptcy following draconian measures implemented by the US Department of Commerce.
In August of last year, President Donald Trump signed into law a defence spending bill which included a clause banning government agencies and contractors from using equipment from Huawei and fellow Chinese vendor ZTE.
At the time, Huawei labelled the bill ‘misguided and unconstitutional’ – and blasted the decision taken by the Trump administration.
The lawsuit by Huawei is expected to be filed on 7 March in a federal court in Texas, where Huawei has its US headquarters.
The move comes as Huawei battles assertions from the US that it poses a security threat to telecommunications networks. The US has lobbied other nations in banning Huawei from their 5G networks, such as Australia and New Zealand, and is also attempting to pressure European countries such as the UK and France.
Secretary of State Mike Pompeo has said countries that use Huawei equipment risk losing the US as a business and trade partner over the alleged security threat.
However, during his keynote address on stage at MWC19 Barcelona last week, Huawei rotating chairman Guo Ping blasted the US campaign against the company saying officials have “no evidence, nothing” to back up their claims.
ZTE, a major international provider of telecommunications, enterprise and consumer technology solutions for the Mobile Internet, is demonstrating 5G network services based on an end-to-end sub-6GHz commercial system, in collaboration with Qualcomm Technologies, Inc.
The live demonstration verifies ZTE and Qualcomm Technologies’ strong 5G technology capabilities to achieve end-to-end 5G commercialization.
The demonstration over 5G NR radio utilizes a real-world end-to-end 5G NR network built with ZTE’s commercial core network and radio base station equipment, as well as a ZTE 5G smartphone powered by the world’s first commercial 5G mobile platform—the Qualcomm® Snapdragon™ 855Mobile Platform paired with the Snapdragon X50 5G modem, as well as Qualcomm Technologies’ RF transceiver and RF front-end solutions. Fully compliant with 3GPP R15, the demonstration is based on NSA networking mode, the N78 5G band and harnesses the LTE B1 band as an access anchor.
For this demonstration, ZTE provides a comprehensive end-to-end solution, including the One for All base station platform solution at the wireless side to support 2G/3G/4G/5G on a single site as well as multimode baseband units (BBU) that provide the maximum 2G/3G/4G/5G processing capacity and is the largest number of interfaces in the industry.
Furthermore, the demonstration adopts ZTE’s “Common Core” core network with a full convergence of 2G/3G/4G/5G/fixed networks and UME, a converged network management solution for intelligent operation and maintenance.
"The collaboration between ZTE and Qualcomm Technologies at MWC 2019, on the demonstration of 5G services based on ZTE’s 5G mobile device and system, is a testament to our efforts for 5G commercialization,” said Xu Ziyang, CEO at ZTE. “It indicates a great step towards making 5G a commercial reality.”
“The 5G NSA live demo at MWC, based on the commercial infrastructure from ZTE using Qualcomm Technologies’ 5G modem and RF front-end, gives us a glance of 5G user experiences expected on commercial devices in 2019,” said Frank Meng, chairman of Qualcomm China. “We look forward to continuing working with ZTE and other leading companies across the ecosystem in accelerating the rollout of 5G networks and devices.”
In the process of promoting 5G commercialization, ZTE has been actively working with industry partners on the verification of key technologies and solutions, as well as network deployments. ZTE is also leading in test progress and performance. Backed up with 5G tests and cooperation with more than 30 operators around the world, ZTE is ready for the upcoming 5G commercialization and rollouts.
The US-led campaign against Chinese telecommunications behemoth Huawei is now facing resistance from a number of major European operators.
Washington has been engaged in a sustained offensive attack on China’s major telecommunication vendors Huawei and ZTE over the last number of years.
However, that has heightened in recent months, with the United States labelling Huawei and ZTE as a severe threat to national security. US President Donald Trump is expected to issue an executive order later this week which would prohibit both Chinese vendors from being involved in wireless networks in the US.
In addition to this, lobbyists on behalf of the US convinced its allies Australia and New Zealand to prevent either company from participating in the rollout of their respective 5G networks. The US is now pressuring Europe to follow suit. Earlier this week, comments by US Secretary of State Mike Pompeo added further fuel to the ongoing saga when he said that countries that use Huawei technology could hurt their relationship with the United States.
However, that has been met with resistance from major European operators who have discovered that they will have to fork out more to replace equipment from Huawei and ZTE, and that a blanket ban on both companies would significantly impact its ability to launch 5G services in the next twelve months, as Huawei is the global leader on 5G equipment.
A number of prominent executives from Europe’s top operators told The Wall Street Journal that Huawei hardware was much better than the rest on offer and often cost less; not using it could well mean that Europe would lag Asia and countries in other regions that use gear from Huawei for their 5G rollouts.
In addition to this, Nick Read, chief executive of Vodafone Group, was quoted as saying in January that a total ban on the carrier's use of Huawei equipment “would have significant financial cost, would have significant customer disruption and would delay 5G rollout in several countries”. The UK's four major wireless operators — Vodafone, BT Group, Telefonica and CK Hutchison Holdings' Three — were all against a ban.
But it is not only big carriers who prefer Huawei equipment, with Jersey Telecom, a publicly-owned company operating in the Isle of Jersey, also expressing a preference for Chinese equipment.
The company sought bids from both Chinese and Western companies in 2014 for its wireless network and while Huawei's bid 20% below the lowest Western offer, ZTE was 40% cheaper. Jersey Telecom chief executive Graeme Millar went with ZTE, and commented: "I have a genuinely high-class, low-cost supplier with ZTE, who haven’t let me down yet.”
The US stands accused of using Huawei and ZTE as political pawns in the ongoing trade war standoff between Washington and Beijing.
US President Donal Trump is set to issue an executive order later this week which would prohibit Chinese companies from being involved in wireless networks in the United States.
The exclusion of Chinese telecommunications behemoths Huawei and ZTE has drawn bipartisan support in the US House of Representatives, which is notable considering the fractious and hostile political climate in Washington under the Trump administration.
Reports emerging from Washington which cite unnamed sources close to the administration are saying the objective is to issue the order just before the commencement of Mobile World Congress in Barcelona at the end of this month.
The executive order would effectively mean a ban on all telecoms equipment supplied by both Huawei and ZTE, which would significantly hurt the coffers of both companies.
The hostility towards both Chinese vendors stems from allegations made by US intelligence agencies that both companies pose a very real threat to national security. However, both Huawei and ZTE vehemently deny the claims and have robustly defended their security record across the world.
The report did highlight that there was no decision yet on how 5G networks would be built in the US without equipment from Huawei.
At the moment, however, no plan had been drawn to manage without equipment from Huawei, with the main push coming from smaller rural ISPs who had benefitted from the use of equipment from the Chinese vendor due to the prices and good service.
Embattled Chinese telecommunication vendors Huawei and ZTE have received a welcome reprieve following the news that two Spanish operators are planning on using them for forthcoming 5G pilots.
Chinese telecommunication vendors ZTE and Huawei have both endured a difficult number of years in the US marketplace – and their issues have multiplied during the Trump administration.
ZTE were momentarily crippled and almost went out of business following a decision by the US Department of Commerce to ban US companies from using their equipment and products for 7 years. However, following an intervention from US President Donald Trump, the ban was overturned and the vendor was instead hit with a $1bn fine and has to adhere to a number of strict rules and regulations.
Huawei have also been subjected to sharp criticism and have been deemed by US intelligence as a serious threat to national security due to their close ties to the Chinese government. Observers believe that the aggression from the US towards the Chinese telecommunication vendors is part of Trump’s plan to use them as pawns in his trade war with China.
Tensions between Washington and Beijing escalated when ZTE were initially banned, and it sparked an angry backlash from China. The rest of the world looked on anxiously as the two economic superpowers clashed head-on, it has since deescalated, but the high-profile arrest of Huawei CFO Meng Wanzhou in Vancouver has once again put diplomatic relations between the two countries under the microscope.
However, the situation in the US for both ZTE and Huawei is set to worsen following reports that US President Donald Trump is set to issue an executive order that would effectively ban operators in the country from using the Chinese manufacturer’s equipment and products.
Reuters has reported that the Trump administration has been mulling over the order for eight months, but it expected to formally enact it later this month. It is said the order would not name Huawei or its compatriot ZTE by name but would give the US Department of Commerce scope to ban any supplier it suspects of being a threat to national security.
Chinese telecommunications giant ZTE may well have had draconian measures that had crippled the company lifted by the US Department of Commerce following an intervention by President Donald Trump, but the narrative that ZTE is a threat to national security is refusing to subside.
US presidential hopeful Elizabeth Warren became the latest politician to take aim at the telecoms behemoth and strongly criticized US senator Joseph Lieberman for serving as a lobbyist for the powerful Chinese vendor.
The ability for Republicans and Democrats to work together to form new policies and legislation in the US Senate and House of Representatives has been at an all-time low during the Trump administration.
The decision by the US to ban ZTE and Huawei from being involved in the rollout of 5G networks has drew bipartisan approval with both Republicans and Democrats voicing their concerns that both companies close association to the Chinese government was a huge threat to domestic security.
Warren, who announced she’d be seeking the Democratic nomination for the US Presidential election in 2020, denounced the US senator for acting as a lobbyist for the Chinese telecommunications behemoth on Twitter.
Warren tweeted, “ZTE is a giant foreign telecoms company that’s close with the Chinese government. They’ve violated serious US sanctions in Iran and North Korea. Their lobbyists keep blocking accountability. And today former senator Joseph Lieberman joined them. Should that be legal? No.”
Warren is an outspoken politician and is known for being a firebrand. She has faced the wrath of US President Donald Trump who has repeatedly ridiculed her claims that she was Native American.
She said that there should be a lifetime ban on members of congress working as lobbyists to make sure they only serve the public. Warren added, “We need a ban on foreign lobbying so countries like China, Russia and Saudi Arabia have to conduct their foreign policy out in the open.”
Bloomberg reported that Lieberman, who was a vice presidential nominee in 2000, began working for ZTE in November. According to a lobbying registration form submitted to the US Senate, he is conducting an assessment of the concerns members of the US Congress, the executive branch and US businesses have about national security risks around ZTE products.
The form also states Lieberman will not be advocating for ZTE, and he had been appointed in the interest of transparency and caution.
The Chinese telecom company will cease to maintain mobile operator O2’s network in Germany – a subsidiary of Spain’s Telefonica – as of next year.
Chinese media outlets have launched a scathing attack on the United States for its role in the arrest and subsequent detainment of Huawei’s CFO in Vancouver earlier this week.
Chinese telecommunications behemoth ZTE has seen its share price plummet by a whopping 39% following the resumption of its trading on the Hong Kong stock exchange. The Chinese vendor was able to resume trading after it reached a resolution agreement with the United States.
ZTE looked set to go out of business following the decision by the US Commerce Department to prohibit American companies from selling crucial hardware and software components to it for a period of seven years.
US officials implemented the ban after it claimed ZTE had failed to make the changes to its Board of Directors after being found guilty of trade violations with Iran and North Korea in 2016. However, following protracted negotiations between Beijing and Washington a settlement deal was finally reached which allowed ZTE to resume business in the United States.
The telecommunications colossus may have been saved but that didn’t stop its share price from nosediving by 39.22 to HK$15.56 during Hong Kong morning trade - while it also plunged by its 10 percent daily limit to 28.18 yuan in Shenzhen.
Fiscal analysts have predicted that whilst the nightmare for ZTE may be over with the US, the company will have to deal with the consequences of that saga for a significant period of time.
Analysts Edison Lee and Timothy Chau said, “While the nightmare is now over, ZTE will likely have to deal with many changes. We expect significant near-term selling pressure and a volatile stock price."
The ZTE crisis was a major issue during trade talks between the US and China, and the Trump administration were able to use that as leverage in the discussions. The ZTE settlement came just days after Beijing offered to increase purchases of US goods by $70bn in an effort to cut the yawning trade imbalance with the US.
It has been reported that Trump has demanded a $200 billion reduction in its trade deficit with China over two years.
“The US agreement with ZTE with fine and change of management, in other words, is a political deal," said analyst Dickie Wong at Kingston Securities. "If the US didn't 'free' ZTE in this way, US companies would find it very difficult in any moves in China, including decisions on mergers and acquisitions," Wong added.