How Huawei Gained A Foothold In The U.S.

NewsBusters | 4/16/2019 | Staff
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The U.S. government and the Chinese telecommunications giant Huawei have been locked in battle for the future of wireless technology with U.S. Officials concerned that the company will give Beijing a backdoor for intelligence gathering.

While telecom companies try to develop the next generation of wireless technology and the U.S. and China fight to determine which country will lead the world in its introduction, there are parts of rural America that have not emerged into the world of 4G. It is here that despite the Administration’s concerns, Huawei has found a foothold in the American market and where a T-Mobile and Sprint say they could provide 5G coverage if their merger would be allowed to proceed.

Rural - Wireless - Association - Wireless - Technology

The Rural Wireless Association, which seeks to provide wireless technology to rural America, counts Huawei as one of its members. RWA also opposes the T-Mobile/Sprint merger, saying it would raise costs for rural America. According to an FCC report, RWA estimates that 25 percent of its members would be impacted if Huawei were to be banned in the United States.

Despite having Huawei has a member, RWA has publicly warned that the potential merger threatened national security. “It’s not just a national security issue. It plays into the whole race-to-5G, and how do you keep Huawei from getting ahead of others,” General Counsel Carri Bennet told Bloomberg in December. RWA’s Twitter account contains multiple instances of them thanking Huawei for their sponsoring various events and for their support. The association did not return multiple requests for comment.

Critics - Merger - T-Mobile - Sprint - Deutsche

Critics of the merger also argued that both T-Mobile and Sprint are owned by the German Deutsche Telekom AG and the Japanese SoftBank, both use Huawei technology. Given their foreign parent companies, T-Mobile and Sprint required approval from The Committee on Foreign Investment in the U.S. to see if any merger...
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