Overblog Follow this blog
Edit post Administration Create my blog
Cisco & Cisco Network Hardware News and Technology

Cisco Said to Cut Ties with China's ZTE

October 16 2012 , Written by Cisco & Cisco Router, Network Switch Published on #Cisco News

Follows investigation into sales to Iran

Cisco has reportedly cut ties with Chinese telecom vendor ZTE after allegations that ZTE sold Cisco gear to Iran.

 Cisco-and-ZTE.jpg

In June, a Reuters story revealed that Cisco, HP and Oracle gear was being sold to an Iranian mobile operator despite U.S. government sanction on such sales. Cisco conducted an internal investigation into ZTE's practices and as a result, recently ended a longstanding relationship with the Chinese company, according to a Reuters story published this week.

 

The Cisco/ZTE situation comes amid a report due today from the U.S. House Intelligence Committee that states that equipment from ZTE and fellow Chinese telecom company Huawei pose a security threat to the U.S. The report, which follows a year-long investigation, recommends the U.S. block any attempts by ZTE and Huawei to make acquisitions or mergers in America, and encourages U.S. firms to procure equipment from other sources.

 

A ZTE spokesperson said of the Cisco action that the company is "highly concerned" and "communicating" with Cisco, according to Reuters. The spokesperson also said ZTE is cooperating with the U.S. government on its investigation into sales to Iran.

 

Cisco did not comment by the time this story was posted. But in June, Cisco said it "... complies with all U.S. export laws and requires our business partners to expressly acknowledge that they too must abide by these laws. Products such as these, which are not subject to individual export licenses, can be purchased from distributors and resold without Cisco's knowledge or control. We continue to investigate this matter, as any violation of U.S. export controls is a very serious matter."

 

According to this week's Reuters story, ZTE's general counsel at its Texas-based subsidiary alleged that the parent company plotted a cover-up of the sale of Cisco gear to Iran, including possibly shredding documents. The FBI has launched a criminal probe into the allegations, the news service reports.

 

ZTE has continued to do business in Iran while American-made technology has been subject to U.S. sanctions. A parts list dated July 2011 for an equipment contract between ZTE and an Iranian telecommunications company included several Cisco switches, Reuters reports. ZTE later agreed to sell five Cisco switches to another Iranian firm, according to the news service.

 

Cisco and ZTE partnered for the past seven years. Cisco viewed ZTE as a means to combat Huawei, which had been beating out Cisco in emerging markets by offering significantly cheaper products, according to Reuters.

 

But ZTE wanted to expand into the U.S. and Cisco did not want that, according to the Reuters report, which quoted "a former Cisco executive with knowledge of the matter."

Reference reading from---http://www.networkworld.com/news/2012/100812-cisco-zte-263143.html

More Cisco News you can visit: http://blog.router-switch.com/category/news/

Share this post

Repost 0

Comment on this post

100% Manual blog comments 09/01/2016 14:31

Positive webpage, where did u think of the data on this posting?I have perused a couple of the articles on your site now, and I truly like your style. Much obliged and please keep up the powerful work.

how to watch netflix for free 08/30/2016 10:37

Nice to read your article! I am looking forward to sharing your adventures and experiences.

download minecraft pc 08/30/2016 10:37

Excellent article. Very interesting to read. I really love to read such a nice article. Thanks! keep rocking.

increase soundcloud followers 08/13/2016 13:44

I needed to thank you for this awesome read!! I certainly getting a charge out of each and every piece of it I have you bookmarked to look at new stuff you post.

buy 100 soundcloud plays 08/13/2016 13:43

A debt of gratitude is in order for sharing the post.. folks are universes best individual in every existences of individual..they need or must succeed to manage needs of the crew.