The Huawei Mate 10 Pro was supposed to launch on AT&T and Verizon, with a big announcement expected at CES. However, AT&T pulled out at the last minute, causing quite a stir in the tech community.
Pressure from US Congress
According to a recent report, significant pressure was put on AT&T by the US Congress not to sell smartphones from Huawei. Reuters reported that US lawmakers exerted pressure on AT&T to drop the handset at the last minute. This move was part of a broader concern about national security and the potential risks associated with using technology from Chinese companies.
Lawmakers are also apparently pressuring AT&T to stop its collaboration with Huawei in its 5G network development. The report suggests that the US Government has warned that if AT&T and other companies continue to work with Huawei, China Mobile, and other Chinese firms, it could jeopardize their chances of securing government contracts. This is a significant concern for companies like AT&T, which rely on such contracts for a substantial portion of their revenue.
National Security Concerns
The US government claims that Huawei has ties with Chinese security agencies and that these agencies could potentially access private communications through Huawei technology. This has raised alarms about the security of data and the potential for espionage. Although there has not been any concrete evidence released to the public to substantiate these claims, the mere possibility has been enough to cause concern among lawmakers and security experts.
The situation is further complicated by the global race to develop and deploy 5G networks. Huawei is a leading player in 5G technology, and its exclusion from the US market could have significant implications for the rollout of 5G in the country. On the other hand, allowing Huawei to participate could pose risks that the US government is not willing to take.
Impact on Huawei and the Tech Industry
The decision by AT&T to pull out of the deal with Huawei is a significant blow to the Chinese company. Huawei has been trying to establish a stronger presence in the US market, and partnerships with major carriers like AT&T and Verizon were seen as crucial steps in that direction. The loss of these partnerships could hinder Huawei’s growth and its ability to compete with other smartphone manufacturers in the US.
Moreover, this situation highlights the broader geopolitical tensions between the US and China. Technology and telecommunications are critical areas of competition, and the actions taken by the US government reflect broader concerns about China’s growing influence in these sectors. The pressure on AT&T and other companies to distance themselves from Huawei is part of a larger strategy to limit China’s reach and protect US interests.
The last-minute decision by AT&T to pull out of the deal with Huawei underscores the complex interplay between technology, national security, and international relations. While the immediate impact is on Huawei and its ambitions in the US market, the broader implications extend to the entire tech industry and the future of global telecommunications.
Source Engadget
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