Another Reason U.S. Fears Huawei: Its Gear Works and It's Cheap

By Peter Waldman, Sheridan Prasso and Todd Shields, 24 January 2019
(Bloomberg) --
In the sparsely settled wildlands of eastern Oregon, Huawei Technologies Co. is hardly the big bad wolf of
China that U.S. officials have depicted. It’s a lifeline to the 21st Century.
China’s largest tech company makes high-quality networking gear that it sells to rural telecommunications operators for 20 percent to 30 percent less than its competitors do, says Joseph Franell, chief executive officer and general manager of Eastern Oregon Telecom in Hermiston, a watermelon-growing hub of 18,000 people. Huawei’s equipment has helped some two dozen U.S. telecom companies provide landlines, mobile services and high-speed data to many of the poorest and most remote areas in the country. Some of these companies have received federal subsidies, but not Franell’s, which was spun out to senior management last year by the electric cooperative that founded it in 1999. Huawei makes the magic happen.
--With assistance from Bill Allison, Margaret Talev, Alyza Sebenius, Marek Strzelecki, Natalie Obiko Pearson, Nick Wadhams and Nizar Manek.
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