Two of China's top telecommunications companies may be selling subsidized gear in the United States, and legislation could be proposed to deal with any related national-security threat, the head of the U.S. House of Representatives' Intelligence Committee said on Thursday.
The committee is investigating what some U.S. officials suspect are close ties between the Chinese government and each of the firms, Huawei Technologies Co Ltd (Shenzhen, P.R.C.) and ZTE Corp (Shenzhen, P.R.C.).
ZTE Corp, the world's fifth largest telecom equipment vendor, plans to increase its purchases from the United States by around 10% annually to over $9 billion in the next three years, an executive said on Wednesday.
The increase in purchases comes at a time when ZTE (Shenzhen, P.R.C.), along with bigger Chinese rival Huawei Technologies Co Ltd (Shenzhen, P.R.C.), is under scrutiny of U.S. lawmakers and industry executives on security and subsidy issues.
U.S. lawmakers are pressing two top Chinese technology companies to disclose their inner workings in a probe into security threats to U.S. telecommunications. Closely held Huawei Technologies Co Ltd and ZTE Corp were asked Tuesday by letter to document, among other things, their interactions with the Chinese Communist Party and advice given to them by five consultancies, including International Business Machines Corp, Accenture and PricewaterhouseCoopers (PwC). ZTE also was asked about its business in Iran.
Verizon Wireless is revamping its prices with new service plans that include unlimited calls and texts and the ability for customers to share their data allowance among multiple devices as it looks to shake up the U.S. wireless industry.
The biggest U.S. mobile operator is hoping to entice customers to connect more gadgets like tablet computers to its network with the new plans as customers will be able avoid paying separate data subscriptions for each device.
Leap Wireless International Inc will be the first U.S. provider of prepaid mobile services to sell the Apple Inc iPhone, potentially putting pressure on its much bigger rivals to provide cheaper phone or service prices.
The regional operator, which caters to cost-conscious customers who pay phone bills in advance, is joining its much bigger national rivals Verizon Wireless (New York), AT&T Inc (Dallas, Texas, USA) and Sprint Nextel Corp (Overland Park, Kan., USA) in selling the popular device.
On Friday, AT&T Inc Chief Executive Randall Stephenson said that a sale of rural phone lines may be too difficult to pull off because of regulatory hurdles. Stephenson had said in January that the company would review the future of its roughly 20 million rural telephone lines, including the possibility for a sale. But selling the phone lines could be difficult because of their diverse geographic locations, the executive said on Friday in a webcast of a Sanford C.
Sprint Nextel Corp has arranged a $1 billion credit facility to buy network equipment from Ericsson for a high-speed wireless project that will involve the shuttering of its Nextel network next year.
On Tuesday, Comcast, a U.S. cable operator, announced a free Xfinity Voice feature that brings mobile voice technologies to the home phone. The new feature, called Voice 2go, allows customers to make phone calls and send text messages for free, when made within a WiFi network, such as in a customer's home or on a public WiFi hotspot. This new service could potentially cut into wireless mobile operators’ revenue.
Ceragon Networks Ltd., a wireless backhaul provider, on Tuesday announced that it has received orders of approximately $4 million to supply microwave backhaul solutions and turnkey services including installation, project management and commissioning to the Navajo Tribal Utility Authority (NTUA). The NTUA selected Ceragon's FibeAir IP-10G to power the Navajo Nation's wireless backhaul network. The systems are part of an over 530 mile network which is made up of microwave towers and fiber optics.
Last week, nine Japanese companies launched a demonstration study for the Albuquerque Business District Smart Grid Demonstration Project, which is to be carried out as part of its Japan-U.S. Collaborative Smart Grid Demonstration Project. The demonstration study will continue for two years.