Reuters disclosed the reasons behind Softbanks decision to abandon Hua4G equipment.
On December 15, local time, the report quoted sources as saying that T-Mobile and Sprint, the giant wireless operators in the United States, believed that their foreign parent companies, Deutsche Telecom and Softbank Group of Japan, had offered to stop using Huaweis technology and equipment, which would help remove the obstacles faced by the two companies in their $26 billion merger transaction. This highlights how exhaustive Washington is. Im trying to shut the Chinese company out.
Exclusive: According to sources, T-Mobile and Sprint believe that avoiding Huawei can finalize screenshots of trading reports in the United States.
It is reported that, like all major U.S. wireless operators, T-Mobile and Sprint do not use Huaweis equipment, but Deutsche Telecom and Softbank Group, as major shareholders of the two companies, have used some Huawei equipment in overseas markets.
T-Mobile and Sprint are the third and fourth largest U.S. wireless carriers, respectively. People familiar with the two deals say that U.S. government officials are pressuring Deutsche Telecom to stop using Huawei equipment. These companies believe they must follow the instructions so that the National Security Council can approve their continued transactions.
It is reported that the CFIUS has been conducting a national security review of T-Mobiles purchase of Sprint, which was announced in April this year. Sources said T-Mobile and Sprint expected CFIUS to approve the deal as early as next week. However, negotiations between the two companies and the U.S. government have not yet been finalized, and the deal is still likely to abort.
This week, Deutsche Telecom and Softbank are seeking to replace the worlds largest maker of network equipment, the report said.
Softbank Group, Sprints parent company, plans to gradually replace its 4G base station equipment to Swedish Ericsson and Finnish Nokia, the Japanese Economic News said Wednesday. The 5G base station, which began construction in the spring of 2019, also plans to place an order with the Nordic company mentioned above.
This decision is based on the fact that the Japanese government has taken measures to exclude Chinas telecommunications equipment on the grounds of security risks such as information leakage. The article also revealed that among the major telecommunication operators in Japan, only Softbank adopted the base stations of Huawei and ZTE. About 10% of the base stations in Japan use Chinese equipment. As for the cost of replacing the equipment, Softbank said: There will be no huge amount of money.
According to Reuters, Deutsche Telecom, Europes largest telecommunications company, said Wednesday that it was evaluating its supplier solutions in Germany and other European markets in view of the controversy over the security of network equipment in China.
Shares of T-Mobile and Sprint fell 1.2% on the 14th.
Sprint, T-Mobile, Deutsche Telecom, Softbank and CFUS declined to comment, while Huawei did not respond to requests for comment, Reuters reported Friday.
In addition, the merger of T-Mobile and Sprint must be approved by the U.S. Department of Justice and the Federal Communications Commission. T-Mobile had previously said it expected to close the deal in the first half of 2019.
The Chinese Embassy in Japan emphasized on the 7th that there is no evidence that Huawei and ZTE products are at risk for safety, as the Japanese government intends to prohibit government agencies from purchasing Huawei and ZTE products on the grounds of national security.
Foreign Ministry spokesman also responded that the essence of Sino-Japanese economic and trade cooperation is mutually beneficial and win-win. Huawei and ZTE have been operating legally in Japan for a long time. We hope that Japan will provide a fair competitive environment for Chinese enterprises to operate in Japan and refrain from doing anything harmful to mutual trust and friendly cooperation between the two sides.
Source: Liable Editor of Netease Science and Technology Report: Yao Liwei_NT6056