Exclusive: T-Mobile, Sprint parents consider dropping Huawei, see U.S. security clearance for deal - sources
T-Mobile US Inc
U.S. government officials have been pressuring T-Mobile`s German majority owner, Deutsche Telekom AG
That pressure is part of the national security review of T-Mobile`s $26 billion deal to buy U.S. rival Sprint, the sources said.
The Committee on Foreign Investment in the United States (CFIUS) has been conducting a national security review of the Sprint deal, which was announced in April. Negotiations between the two companies and the U.S. government have not been finalised and any deal could still fall through, the sources cautioned.
Sprint`s parent, SoftBank Group Corp , plans to replace 4G network equipment from Huawei with hardware from Nokia
T-Mobile and Sprint shares were both down 1.2 percent on Friday.
Deutsche Telekom, Europe`s largest telecoms company, on Friday said it was reviewing its vendor plans in Germany and other European markets where it operates, given the debate on the security of Chinese network gear.
Huawei has said the security concerns are unfounded. Tensions have been heightened by the arrest of Huawei`s chief financial officer in Canada for possible extradition to the United States.
Sprint, T-Mobile, Deutsche Telekom, SoftBank and CFIUS declined to comment.
(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)
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