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Huawei's U.S. Channel Momentum May Be in Jeopardy

October 08, 2012 - News

Huawei's momentum among channel partners in North America may have hit a snag with the release of a federal committee's report dubbing the equipment maker a threat to U.S. national security.

Synnex, Huawei's first and top distributor in the United States, declined to comment on whether it will continue its relationship with the China-based equipment maker.

The U.S. House Intelligence Committee has just released a study urging American firms not to do business with Huawei, the second-largest telco-gear manufacturer in the world. The committee also condemned ZTE as a threat. Committee members say allowing Chinese companies access to U.S. telco infrastructure gives Huawei and ZTE a way to spy on America's governmental and corporate activities.

The report comes just days after Huawei announced it has added Communications Test Design Inc. (CTDI) and Condre Storage Inc. as new distributors in North America.

Huawei is a big player in the 4G space. It also prices its products lower than many U.S.-headquartered vendors, making it an attractive alternative to the likes of Cisco, which has voiced fears about competing against Huawei on its home turf.

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