AT&T Inc. was threatened by the U.S. National Security Agency with loss of government business if it bought equipment for a next-generation phone system from China’s Huawei Technologies Co., the Washington Post reported, citing several unidentified people with knowledge of the matter.
The electronic spying agency was worried that its Chinese counterparts might insert “digital trapdoors” in Huawei’s equipment that would function as secret listening posts, the newspaper said.
In February, AT&T said it would obtain the necessary equipment from Ericsson AB of Sweden and France’s Alcatel-Lucent SA.
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