China syndromeNSA threatened AT&T over buying phone gear from China

Published 11 October 2010

The U.S. National Security Agency, worried about Chineses spying, earlier this year warned AT&T that if the company were to go ahead with its decision to purchase equipment for a next-generation phone system from China’s Huawei Technologies, then AT&T would lose all of its U.S. government business; AT&T has decided to buy the gear from Ericsson AB of Sweden and France’s Alcatel-Lucent SA instead

AT&T Inc. was threatened by the U.S. National Security Agency (NSA) with loss of government business if it bought equipment for a next-generation phone system from China’s Huawei Technologies Co., the Washington Post reported, citing several unidentified people with knowledge of the matter.

The electronic spying agency was worried that its Chinese counterparts might insert “digital trapdoors” in Huawei’s equipment that would function as secret listening posts, the newspaper said.

 

Bloomberg reports that in February, AT&T said it would obtain the necessary equipment from Ericsson AB of Sweden and France’s Alcatel-Lucent SA.