Monday, November 8, 2010
Sprint Axes Huawei
Engadget is reporting that Sprint has decided to axe contracts with Huawei and ZTE over security concerns. According to Engadget even though both Huawei and ZTE bid the lowest bids in the bidding process for some new smart phone contracts, Sprint has decided to decline their bids due to security concerns that were expressed by the US Secretary of Commerce. Apparently the fear is that Huawei and ZTE may have ties to the Chinese government and so the US government doesn't want these companies to be supplying communication equipment due to China's emerging "cyber capabilities".
And you know what? I can't blame the US for being concerned. Many of the attacks against US systems do seem to come out of China. In many ways this shouldn't necessarily prevent Huawei or ZTE from bidding, but I have to admit that there are big concerns here and perhaps the risks are too high to take chances. Then again, it’s not like the US doesn't spy on other countries and we all buy US products. I know that over the years there were some that expressed concerns that Microsoft might have a back door into our computers placed there by the US government. But that never stopped any other country from buying US.
Could Huawei and ZTE cause a lot of damage for the US government if they are truly tied to the Chinese government, sure they could. That is why any contract to a foreign company should be kept limited. Normally I would disagree with the government on issues like this, but the threat to the US is real and there is lots of evidence of attacks out of China. So I have to agree with the US government on this one.
What about you?