T AT&T Inc

By WSJ City 

US officials have told telecommunications executives around the world to steer clear of Huawei, calling the company a national-security threat, but that hasn't prevented AT&T from using the Chinese company's equipment in Mexico.

KEY FACTS

--- AT&T has kept Chinese equipment out of its domestic networks.

--- But industry execs say the US firm uses Huawei's gear to run a large part of the wireless network in Mexico.

--- There, Huawei is as welcome as any other supplier.

--- Huawei has won at least four wireless infrastructure contracts since 2011 to enhance service for Mexican carriers.

--- That's according to industry research firm Ovum.Huawei competes with Sweden's Ericsson and Finland's Nokia to equip cellphone network operators.

"When we upgraded our Mexico network to 4G LTE, we replaced Huawei in our data core network with equipment from the same suppliers we use in the United States, because it gave us consistency in design and scale in purchasing. We expect to harmonize our networks in the same way when we upgrade to 5G in Mexico."

An AT&T spokesman

Why This Matters

Huawei's success in Mexico shows the uphill climb US officials face convincing private-sector leaders that the Shenzhen-based telecom giant poses an imminent threat to their information security. The State Department has stepped up its campaign in recent months to persuade allied countries to avoid doing business with Huawei, with limited success.

What They Said

A State Department spokeswoman declined to comment on diplomats' discussions with Mexican authorities. An AT&T spokesman said US officials haven't asked the company to remove its Huawei gear in Mexico.

"We are the most significant vendor in this country. We respect, of course, headquarters' discussions with their governments. We just continue supplying them what we are asked to supply."

Cesar Funes, a Huawei vice president in Mexico.

A fuller story is available on WSJ.com

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(END) Dow Jones Newswires

April 16, 2019 09:12 ET (13:12 GMT)

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