Light Reading
Norway's national carrier excludes ZTE from any new business and all tender processes worldwide for a breach of its code of conduct

Telenor Bans ZTE From New Deals

Ray Le Maistre
10/13/2008
50%
50%

Norway's national operator, Telenor ASA (Nasdaq: TELN) has excluded Chinese vendor ZTE Corp. (Shenzhen: 000063; Hong Kong: 0763), from any business opportunities for six months because of a breach of the carrier's code of conduct.

Telenor spokesman Dag Melgaard said that "for the moment we have suspended ZTE from tender processes and new business opportunities for six months, ending March 3 next year, because of a breach of our code of conduct related to a recent tender process." He said the ban is worldwide, covering all of Telenor's international operations.

Melgaard would not provide any details about the nature of the breach, or which tender process it referred to, but an industry source has told Light Reading that ZTE representatives attempted to bribe Telenor officials in the course of a recent business tender.

ZTE says the problem was caused by a rogue employee. In a statement emailed to Light Reading and attributed to the vendor's CEO Yin Yimin, the company noted: "ZTE has a very clear Code of Conduct and, as a listed company, our employees have to adhere to the highest business standards."

It continued: "This situation between Telenor and ZTE has arisen because of the actions of a single employee in a ZTE subsidiary acting on his own behalf. The individual concerned has been disciplined and we are reviewing possible legal action. We expect to continue the strong and positive relationship between our two companies in the very near future."

Telenor has operations throughout Northern Europe (Norway, Denmark, Finland, and Sweden), Eastern Europe (Hungary, Montenegro, Serbia, Russia, and Ukraine), and Asia/Pacific (Bangladesh, Malaysia, Pakistan, and Thailand).

ZTE is a supplier of GSM mobile infrastructure to Telenor. (See ZTE Touts GSM Growth.)

— Ray Le Maistre, International News Editor, Light Reading

(18)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View
Page 1 / 2   >   >>
digits
50%
50%
digits,
User Rank: Light Beer
12/5/2012 | 3:29:41 PM
re: Telenor Bans ZTE From New Deals
This doesn't look good for ZTE's reputation...

Will carriers in general now think twice before inviting ZTE to bid in RFPs?

Or are such instances more widespread but usually swept under the table?
Pete Baldwin
50%
50%
Pete Baldwin,
User Rank: Light Beer
12/5/2012 | 3:29:40 PM
re: Telenor Bans ZTE From New Deals
7 has a point. I was talking to a vendor recently who was telling me that whenever they responded to RFPs in Brazil, they were required to send their equipment to be tested (obviously) along with some laptops. The purpose of the laptops? To stay in Brazil, of course.

(Nothing against Brazil -- the story is obviously secondhand, so if anyone wants to refute it, I'm all ears.)
paolo.franzoi
50%
50%
paolo.franzoi,
User Rank: Light Beer
12/5/2012 | 3:29:40 PM
re: Telenor Bans ZTE From New Deals

Bribery is pretty much Standard Operating Procedure outside the first world. I suspect that the ZTE rep was doing the customary thing and had no idea he/she would be called in on it.

Most of the time the bribery has levels of indirection, but it is what it is. Since first world companies generally have issues (for example in the US the FPCA), they work through "partners" who perform "services" to get the deals done. What those services are? Don't ask.

seven
macster
50%
50%
macster,
User Rank: Light Bulb
12/5/2012 | 3:29:38 PM
re: Telenor Bans ZTE From New Deals
Siemens' level then. But definitely not up there with George Bush!
digits
50%
50%
digits,
User Rank: Light Beer
12/5/2012 | 3:29:37 PM
re: Telenor Bans ZTE From New Deals
I think you'll find that's representative of our editorial independence -- it shows that we don't interfere with our advertising inventory just because some content might be negative about a particular company.

So it's not a failure of an advertising system - it's more indicative of our editorial ethic.
zbalint
50%
50%
zbalint,
User Rank: Light Beer
12/5/2012 | 3:29:37 PM
re: Telenor Bans ZTE From New Deals
To make matters ..more juicy, you LR guys schedule a ZTE Mobile handset ad on top of this article. Well done!

It's like oil company interstitials in the Exxon Valdez documentary.
melao
50%
50%
melao,
User Rank: Light Beer
12/5/2012 | 3:29:36 PM
re: Telenor Bans ZTE From New Deals
For sure brookseven has a point. But to think that bribery only happens in poor countries is a bit weird. It happens very often in the US and in Europe.
I am brazilian, and I live in Europe. I have seen it happen in both places.

I remember that in 2000, a famous canadian telecom company, hired a jet and brought several Brazilian authorities to "visit the HQ". And I mean, government authorities, and people from the regulatory agency for telecom in Brazil.

About ZTE, I can tell that they normally give away for free a lot of equipment to enter a market. They tried this in the carrier that I work. But what was really strange, is that they were not RoHS compliant at the time, so they weren't able to even sell something. But they tried anyway. It didn't work here, but maybe some other carrier accepted this, who know ?
gbmorrison
50%
50%
gbmorrison,
User Rank: Light Beer
12/5/2012 | 3:29:35 PM
re: Telenor Bans ZTE From New Deals
Every telcom equip engineer at a real company out there should sit down and write a thank you letter to Telenor, because the effects of behaviour like melao is describing are very real and damaging. Strong teams with good products have to give up in the tender (and have layoffs, and stop next gen product development) because of these guys pissing in the bidding process well. Three cheers for Telenor for calling ZTE or anyone else out on it.
paolo.franzoi
50%
50%
paolo.franzoi,
User Rank: Light Beer
12/5/2012 | 3:29:35 PM
re: Telenor Bans ZTE From New Deals

melao,

Please do not mistake my meaning. I agree with you that there are plenty of underhanded deals in the first world. It is just my experience that almost all deals in the 3rd world are dirty.

A lot of these are indirect like....say you want to sell some gear and contract the customer's brother's company to provide some adjunct services. Needless to say these can be overpriced and some of the money may actually be paid by that partner company to "consultants". It is often much more indirect than the bag of cash or purchase of a house (although I am aware that these things occur as well).

seven
macster
50%
50%
macster,
User Rank: Light Bulb
12/5/2012 | 3:29:34 PM
re: Telenor Bans ZTE From New Deals
Where my experience is concerned, the major fraud/corrupt/immoral/unethical practices take place in the West.

Here, we tend to gloss over it with comforting names, e.g "Cash for Honours", "Keating Five", etc.
Page 1 / 2   >   >>
Educational Resources
sponsor supplied content
Educational Resources Archive
Flash Poll
From The Founder
Is your network built on 'The Old IP,' or are you part of 'The New IP' revolution?
LRTV Documentaries
A Cultural Shift for an OTT World

9|26|14   |   01:41   |   (3) comments


Telcos need to embrace a new approach to partnerships if they are to generate extra revenues quickly and give customers what they want.
LRTV Documentaries
New Skills Needed as Telecom, IT Collide

9|26|14   |   4:07   |   (1) comment


As telecom and IT collide, new technologies are emerging, new skills are needed and new opportunities for women are arising.
UBB Forum News
Do IP Networks Need An Overhaul?

9|25|14   |   02:01   |   (0) comments


As traffic levels ramp, do IP networks need new technologies and topologies?
LRTV Documentaries
Sprint Wields Its Influence in the Valley

9|25|14   |   3:09   |   (11) comments


Anne-Louise Kardas, Sprint's connection to startups in the Valley, explains how telcos can be innovative and find new opportunities with partners.
LRTV Documentaries
SDN, NFV & The Future of XO's Network

9|25|14   |   3:47   |   (1) comment


XO Communications COO Don MacNeil explains how cloud, SDN and NFV are altering its network requirements as well as changing data centers of the future.
UBB Forum News
The OTT Conundrum

9|24|14   |   01:39   |   (0) comments


What is holding back prosperous partnerships between telcos and the OTT players?
LRTV Documentaries
Putting Broadband to Work

9|24|14   |   01:26   |   (0) comments


High-speed broadband network rollout is key to telco strategies, but it's what happens after the network is built that counts.
Light Reedy
Light Reading's Women in Telecom Recap

9|24|14   |   0:55   |   (4) comments


Our first Women in Telecom breakfast was a huge success, and we hope you'll join us in London for the next event on November 6.
UBB Forum News
Monetizing Ultra-Broadband

9|24|14   |   01:43   |   (2) comments


Ultra-broadband networks need to be built, with fiber-to-the-premises the ultimate goal, but they need to be monetized, too.
LRTV Huawei Video Resource Center
Sales Director of INIT on Plug & Play Switch Devices

9|19|14   |   3:21   |   (0) comments


INIT Italy uses both the Huawei S5700 and S7700 series switches for the campus LAN environment. Sales Director Andrea Curti says their company chose these Huawei devices over others because of their performance, flexible scalability and plug-and-play features.
LRTV Huawei Video Resource Center
Saudi Arabia Upgrades Vocational Training System

9|19|14   |   3:31   |   (0) comments


The Technical and Vocational Training Corporation (TVTC) has 100,000 students, 150 government-owned institutions and oversees 1000 private institutes. The CIO of TVTC explains that Huawei devices have allowed them to manage multiple datacenters using just one software program, scientifically tracking the progress of students and teachers, saving them millions.
LRTV Huawei Video Resource Center
Huawei's Media Solutions Are Here to Stay

9|19|14   |   4:35   |   (0) comments


The current media revolution requires rapid upgrades in technology. New formats (HD, 3D, 4K etc.) and the subsequent explosion of file sizes demand sophisticated network and storage architecture. Social media and the multiple distribution channels require a robust asset management system. Gartner analyst Venecia Liu speaks about the current technological trends in ...
Upcoming Live Events
October 29, 2014, New York City
November 6, 2014, Santa Clara
November 11, 2014, Atlanta, GA
December 2, 2014, New York City
December 3, 2014, New York City
December 9-10, 2014, Reykjavik, Iceland
June 9-10, 2015, Chicago, IL
Infographics
Half of the world's population will be connected to the Internet by 2017, but not just by smartphones and desktops.
Hot Topics
Facebook Pokes Around LTE Direct
Sarah Reedy, Senior Editor, 9/25/2014
Sprint Wields Its Influence in the Valley
Sarah Reedy, Senior Editor, 9/25/2014
Is Redbox Instant Shutting Down?
Mari Silbey, Independent Technology Editor, 9/30/2014
US Ignite Cultivates Gigabit Apps
Jason Meyers, Senior Editor, Utility Communications/IoT, 9/25/2014
Like Us on Facebook
Twitter Feed