After a long push in Mexico, China’s Huawei landed a coveted job in 2017 supplying equipment for an ambitious telecommunications network built for carriers delivering the latest generation of technology - but the contract came with a catch. Read more:
MEXICO CITY - After a long push in Mexico, China’s Huawei landed a coveted job in 2017: supplying equipment for the country’s so-called “red compartida,” an ambitious telecommunications network built for carriers delivering the latest generation of technology.
Altan said in a statement that its decision to divide the work between Nokia and Huawei in that way was made “exclusively on technical and economic optimization criteria,” adding that it was not informed of U.S. concerns about Huawei. The company said no cities awarded to vendors were reassigned, and Huawei and Nokia “equally delivered their plans.”
Huawei’s potent appeal also shows how telecom operators globally are trying to balance the need for the Chinese company’s affordable and reliable equipment with the U.S. campaign to steer countries away from using its gear, Mexican telecom executives say. But some telecom experts say it is harder to wall off the core in the coming fifth generation, or 5G, networks.
Dimitri Diliani, Nokia’s global head of end-to-end solutions, said in an interview that the company met all key objectives and its share of the Altan project has not changed. Vendors typically start with a certain share of a project, “but based on your performance, you could get more,” he said in an interview. “I have experienced that already in this country.”
The prospect of Chinese participation in a sophisticated national telecom network attracted U.S. scrutiny early on. The U.S. State Department met with Mexico’s ministry for communications and transportation twice in 2016 to voice concerns about Huawei’s potential involvement in the project, according to a former senior U.S. State Department official.
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