Back in April, it was announced that wireless service providers T-Mobile and Sprint were planning to merge into “New T-Mobile.” If this merger occurred, it would pose a far greater threat to Verizon and AT&T than the two companies ever were as separate entities. There’s just one tiny problem: the merger needs federal approval.
The Committee on Foreign Investment in the United States has been reviewing the merger, and a decision could be announced as early as next week by a national security panel. There seems to be little reason to not approve of the merger, but sources say such an outcome is still possible. That is, until a recent revelation which may have given the companies an out: Huawei.
Huawei has been in the news quite a bit recently for all the wrong reasons. But the arrest of Huawei CFO Meng Wanzhou and demand of extradition to the United States isn’t why T-Mobile and Sprint are considering dropping all Huawei technology going forward; it’s because the United States government and military do not trust Huawei.
Earlier this year, six heads of major federal intelligence agencies advised the public at a Senate Intelligence Committee hearing to avoid purchasing and using any Huawei or ZTE technology. The Pentagon has banned the sale and use of Huawei and ZTE phones on all military bases worldwide. In August, President Trump signed a bill that bans all usage of Huawei and ZTE technology. Not only are there concerns that trade secrets may be stolen by the Chinese companies, but more importantly, they are viewed as national security risks. Huawei in particular is considered to be an arm of the Chinese government by the U.S. government and military officials alike, and one that would spy on the U.S. This isn’t an unwarranted concern, considering the fact that the founder of Huawei happens to be a former high-ranking Chinese military officer.
It isn’t just America either. With 5G on the horizon, cyber security is more important now than it ever was, and many countries are taking steps to ensure Huawei has no part in the 5G infrastructures in their countries. Alongside the United States, Australia, New Zealand, the U.K., and Japan are dropping the ban hammer on Huawei in regards to 5G technology.
Given all the controversy and national mistrust in regards to Huawei, the last thing either Sprint or T-Mobile would want to do is continue to work with Huawei moving forward, especially when they need federal approval for the merger to clear.
