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October 9, 2012

Cisco terminates ties with ZTE following Iran probe

Chinese firm sold barred computer equipment from Cisco

By CBR Staff Writer

US based Cisco Systems has terminated a seven year sales collaboration with ZTE, following allegations that the Chinese telecommunications equipment manufacturer sold Cisco’s networking equipment to Iran.

Cisco commenced its probe into the Chinese firm after claims that following Chinese firm sold banned computer equipment from Cisco and other US firms including HP and Oracle, to Iran’s largest telecom firm.

Following the allegations, US Federal Bureau of Investigation (FBI), US Commerce Department, congressional committee started a probe into the allegations that ZTE sold US labelled technology to the Iranian government.

ZTE spokesman David Dai Shu was quoted by Reuters as saying that ZTE is highly concerned with the matter and is communicating with Cisco.

"At the same time, ZTE is actively cooperating with the US government about the probe to Iran. We believe it will be properly addressed," Shu said.

Now, the US House of Representatives’ Intelligence Committee also reported that ZTE and Huawei Technologies must exit from the US market as they pose a security threat, while both the firms have denied the claims.

ZTE had collaborated with Cisco in a bid to strengthen its project opportunities in China and Asia Pacific against Chinese telecom firm Huawei.

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Mobile software firm Vringo has also claimed ZTE of infringing its three patent technologies relating to cellular networking technology.

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