Huawei’s US expansion hits another speed bump as Verizon bails out of smartphone deal
US security concerns continue to thwart the efforts of China’s largest telecommunications equipment maker to forge a smartphone distribution pact with a major American mobile network operator
American mobile network operator Verizon Communications has dropped all plans to sell smartphones by Huawei Technologies, including the new Mate 10 Pro, under pressure from the US government, according to people familiar with the matter.
The move follows AT&T’s decision earlier this month not to introduce the Mate 10 Pro to the US market.
Devices from Huawei still work on the networks of both Verizon and AT&T but direct sales would have allowed China’s largest smartphone supplier to reach more consumers than it can through third-party distributors.
The US government’s renewed concern about Chinese spying is creating a potential roadblock in the race between Verizon and AT&T to offer 5G, the next generation of super-fast mobile service.
Huawei is pushing to be among the first to offer a 5G-capable smartphone, but the device may be considered off-limits to US carriers which are preparing to offer the next-generation mobile service in a few cities later this year.
5G networks are expected to be used in everything from mobile communications to self-driving cars and artificial intelligence.