The Nikkei Asian Review on Thursday reported that based on recent security concerns, Softbank will replace existing 4G equipment made by Huawei with hardware from Nokia and Ericsson.
Although, T-Mobile’s impending deal to buy Sprint could have been approved as early a next week in the U.S.
T-Mobile’s $US26 ($36) billion Sprint buyout was first proposed back in April, the Committee on Foreign Investment in the United States (CFIUS) began looking over to deal ensure that it would not pose a risk to U.S. security.
Now, according to a report from reuters, it seems both T-Mobile parent company Deutsche Telekom and Sprint owner Softbank agreed to at least reconsider their use of Huawei technology.
The U.S. intelligence community claims Huawei is a threat due to alleged but unproven concerns of Chinese espionage.
And this seem to be a move by the U.S. government in taking the opportunity to further isolate the China-based technology giant.
Tensions between the U.S. and China tightened this month after the arrest in Canada of Meng Wanzhou, Huawei’s chief financial officer and daughter of the company’s founder.
The U.S. has accused Meng of financial fraud and sanctions violations.
She is currently out on bail awaiting potential extradition to the U.S.