CES 2018: Why China's Huawei Won't Be Signing a Deal with AT&T

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The Mate 10 Pro is built to operate on GSM networks in the US including AT&T, T-Mobile, Cricket, MetroPCS, Simple Mobile and Tracfone.

Huawei Technologies Co Ltd's [HWT.UL] planned deal with USA carrier AT&T Inc (T.N) to sell its smartphones in the United States has collapsed at the 11th hour because of security concerns, people with knowledge of the matter said, in a blow to the Chinese firm's global ambitions.

The letter to FCC Chairman Ajit Pai, which was signed by 18 lawmakers, noted concerns about Chinese companies in the USA telecommunications industry.

"The US market is a unique challenge for Huawei, and although Huawei Mate 10 Pro will not be sold by US operators, we remain committed to this market now and in the future", says the official statement of Huawei.

AT&T spokesman Fletcher Cook declined to comment.

It looks that more and more Android phones could become available to purchase at the US Microsoft Store this year.

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The Chinese electronics manufacturer is one of the leading companies in the world that is dominating the smartphone-making scene.

It was the highest profile Chinese deal to be rejected by Washington since Donald Trump came to power.

Huawei will start selling its latest flagship smartphone, the $799 unlocked Mate 10 Pro, in the United States through select retailers in February, four months after launching the phone in other parts of the world.

"We win the trust of the Chinese carriers, we win the trust of the emerging markets. and also we win the trust of the global carriers, all the European and Japanese carriers", he said.

AT&T has been pressed to give up the deal after 18 US Senate and US Intelligence Committee members have signed a letter to regulators expressing concerns about Chinese companies' engagement in the US telecommunications sector.

In the United States, where telecom carriers dominate the distribution channel by typically providing subsidies and special package deals, Huawei had been unable to make any significant inroads due to national security concerns. A new bill introduced to Congress proposes a ban preventing branches of the USA government from working with service providers that use any equipment from either company for security reasons. Samsung Electronics can not help trying to turn the tide by appealing to the court on the home ground of Huawei in China and concentrating on trials in the U.S. and elsewhere. It said the business deal could make the company's smartphones more common in the US and put the country at risk if government officials start to use them.