Huawei Chief Slams US Carriers After Collapse of AT&T Deal

Huawei Chief Slams US Carriers After Collapse of AT&T Deal

Huawei Chief Slams US Carriers After Collapse of AT&T Deal

In the United States, where telecom carriers dominate the distribution channel by typically providing subsidies and special package deals, Huawei had been unable to make any significant inroads due to national security concerns.

Huwaei highly publicized their expansion to the United States markets via promotions on their U.S. Facebook Page and their tweets.

In 2012, a United States congressional committee said Chinese Huawei and ZTE would be banned from mergers and acquisitions in the USA because the two companies pose a threat to U.S. security.

AT&T was said to have a deal lined up with Huawei to sell the Mate 10, but has since changed its plans, according to a report in The Wall Street Journal.

In June 2016 Huawei filed a further complaint relating to the same infringement at the Quanzhou Intermediate People's Court, according to Reuters.

A representative of Huawei said on Thursday that they believe the move to protect their intellectual property rights can help promote the healthy and sustained development of the science and technology industry.

The mounting pressure from lawmakers was likely the most significant contributing factor to the deals falling through with the country's two largest carriers, according to one West Coast-based solution provider executive that asked not to be named. "They need Huawei", he added.

What's a poor smartphone maker to do when its latest grand plans for USA distribution fall through?

"I think it's quite a big loss for us and also for the carriers, but it's more of a big loss for consumers", Richard Yu, chief of Huawei's consumer business group, said during a CES keynote.

While Huawei does sell its smartphones in the USA, it does so without the benefit of a partnership with any of the country's four major wireless carriers, AT&T, Sprint, T-Mobile or Verizon Wireless. Companies have increasingly filed patent-related lawsuits in China as the nation takes position as the world's top smartphone market.

"This makes it very hard for Huawei to get significant in the the open channels account for only about 10-11 percent of the market", said Canalys analyst Mo Jia, referring to sales channels outside telecom carriers and vendors' own stores.

AT&T has reneged on Huawei's first distribution deal with a U.S. carrier, leaving the firm's expansion ambitions in tatters. "Now, we can get just about anything".

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