Verizon Drops Plan to Sell Huawei Phones

Verizon Communications Inc. has dropped all plans to sell phones from Chinese manufacturer Huawei Technologies Co., including the new Mate 10 Pro, under pressure from the U.S. government, according to people familiar with the matter.

The move follows AT&T Inc.’s decision earlier this month not to introduce the Mate 10 Pro to the U.S. market. Huawei devices still work on both companies’ networks, but direct sales would’ve allowed them to reach more consumers than they can through third parties.

Huawei's Mate 10 Pro with 5G networking capabilities apparently falls under the category of Chinese-made telecom equipment under investigation, as the company has been accused of having ties with the Chinese government.

The government’s new concern about Chinese spying is creating a potential roadblock in the race between Verizon and AT&T to offer 5G, the next generation of super-fast mobile service.

Huawei is pushing to be among the first to offer 5G-capable phone, but the device may be considered off-limits to U.S. carriers who are starting to offer the next-generation service this year in a few cities.

Previous Huawei devices have been sold by AT&T and Verizon in the past, but those devices didn't support the 5G network. And it's the 5G capabilities that the US government is worried about. 

5G networks are expected to be used in everything from phones to self-driving cars and artificial intelligence. U.S. security agencies and some lawmakers fear that 5G phones made by companies that may have close ties to the Chinese government could pose a security risk.

5G is the upcoming evolution of the current 4G LTE network that most mobile devices use to send and receive data. 5G will be used for far more than simple mobile data, as it will offer the speed and bandwidth required for more complex communications for autonomous vehicles and artificial intelligence.

Verizon declined to comment and Huawei was not immediately available for comment.

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