Huawei, ZTE customers in the US contemplate life without them
Small network operators in the United States are bracing themselves for bad news, as the White House considers restricting the ability of the two Chinese firms to sell products in the US because of national security concerns
As the United States government mulls further restrictions on the activities of Chinese telecommunications equipment makers Huawei Technologies and ZTE Corp, many small carriers dependent on these suppliers for low-cost gear have found themselves in limbo.
Companies that bought network equipment as well as smartphones from the two Chinese firms may experience disruptions – some may have to rip out existing infrastructure, while others could confront shortages of cheap handsets they sell in their stores, potentially turning away some price-sensitive customers.
The US carriers are bracing themselves as more bad news for the Chinese suppliers trickles in: The White House is mulling restricting their ability to sell telecoms equipment in the US based on national security concerns, The Wall Street Journal reported.
The Pentagon is also restricting sales of those equipment suppliers’ smartphones and modems on military bases, and may consider a departmentwide advisory regarding purchases of their devices. The Federal Communications Commission is considering sanctions.
In April, the Department of Commerce prohibited ZTE from exporting anything out of the US – which means that the company cannot access chips to make its smartphones for sale in the US market, said John Marick, chief executive at mobile network operator Consumer Cellular.
“Literally every company in the US that sells ZTE devices, they are all scrambling to fill this void,” Marick said.