Cisco Systems Inc. and Huawei Technologies Co. are losing clout in the world’s fifth-largest telecommunications market as Brazil’s government backs smaller local companies that pledge to block foreign spying.
Officials have intensified conversations with communications hardware makers such as Padtec SA and Datacom, betting they can get greater protection against the possibility of so-called back-door security holes in foreign-made products. While discussions have focused on government-operated networks for now, they open the door for the companies to take a greater role in the networks of Brazil’s publicly traded phone carriers.
