& cplSiteName &

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        ADD A COMMENT
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   >   >>
From The Founder
The independent evaluation of Nokia's key virtual network functions (VNFs) was a defining moment for the Finnish giant.
Flash Poll
Live Streaming Video
The Real-World View of Service Provider Innovation
Executives from Deutsch Telekom, Facebook, AT&T, Vodafone, and Masergy share insights from their company’s major transformation efforts and updates on key issues including open source, managed cloud connections and 5G.
LRTV Documentaries
Light Reading Hall of Fame 2016

5|23|16   |   05:43   |   (0) comments


Find out who has been welcomed into Light Reading's Hall of Fame this year.
LRTV Custom TV
ZTE TM Forum Highlights

5|23|16   |     |   (0) comments


ZTE showcased its new ICT solutions at TM Forum in Nice.
LRTV Interviews
Gamma's MD on the Emergence of UC2

5|20|16   |     |   (0) comments


Gamma Communications Managing Director David Macfarlane believes the unified communications (UC) market has reached a tipping point.
LRTV Custom TV
The Ultimate 5-Minute Guide to Digital Customer Engagement

5|20|16   |     |   (0) comments


In this short video, you will hear all about how Digital Customer Engagement is the key to meeting customer expectations, keeping them happy, and maximizing revenue. VP Product & Marketing at Pontis, Ofer Razon, breaks down for us the five essential capabilities for successful Digital Customer Engagement. Don’t miss!
LRTV Custom TV
NFV in 2016: Part 1 – NFV Use Cases Get Real

5|19|16   |   05:57   |   (0) comments


Consensus is building around the key use cases for NFV, including managed IP services at the network edge and on customer premises, which can generate new revenues from enterprises/SMBs and consumers; Evolved Packet Core to support LTE migration; and adjacent technologies, such as TAS and IMS, to support VoLTE and next-generation charging and policy control ...
LRTV Custom TV
Nokia's Steve Vogelsang on NFV – Part 3

5|19|16   |     |   (0) comments


Steve Vogelsang discusses the challenges of operational transformation and how Nokia helps its customers. Join Steve at the Big Communications Event in Austin the morning of May 24, on his keynote and optical networking panel.
LRTV Interviews
Level 3: Why UC Is In Demand

5|17|16   |   04:12   |   (1) comment


Andrew Edison, Level 3's senior VP of sales, EMEA region, talks about the drivers of growth in the unified communications services market.
LRTV Custom TV
ARM's OPNFV Action

5|17|16   |     |   (0) comments


At the ARM booth at MWC 2016, Joe Kidder and Bob Monkman speak to Light Reading about OPNFV and their upcoming action.
LRTV Custom TV
Nokia's Steve Vogelsang on NFV – Part 2

5|16|16   |     |   (0) comments


Steve Vogelsang gives advice to service providers on how to move to NFV. Join Steve at the Big Communications Event in Austin the morning of May 24, on his keynote and optical networking panel.
LRTV Interviews
Interoute CTO on NFV's Maturity

5|13|16   |   06:46   |   (1) comment


Matt Finnie, CTO at international operator Interoute, explains how NFV has made life easier in terms of logistics and how Interoute can now enable a 'software-defined moment' for its customers.
LRTV Huawei Video Resource Center
UBBS 2016 Highlights

5|12|16   |     |   (0) comments


Highlights of Huawei's UBBS event in Hong Kong.
LRTV Huawei Video Resource Center
European 2020 Digital Agenda

5|12|16   |     |   (0) comments


Anacom's Fatima Barros discusses the plan to bring ultrafast broadband to Portugal by 2020.
Upcoming Live Events
September 13-14, 2016, The Curtis Hotel, Denver, CO
December 6-8, 2016,
June 16-18, 2017, Austin Convention Center, Austin, TX
All Upcoming Live Events
Infographics
A new survey conducted by Heavy Reading and TM Forum shows that CSPs around the world see the move to digital operations as a necessary part of their overall virtualization strategies.
Hot Topics
WiCipedia: Short Skirts & Back-Up Plans
Eryn Leavens, Special Features & Copy Editor, 5/20/2016
Google Doubles Down on Machine Learning, AI
Mitch Wagner, West Coast Bureau Chief, Light Reading, 5/19/2016
Eurobites: Be More European, EU Tells Streaming Services
Paul Rainford, Assistant Editor, Europe, 5/20/2016
Why I'm Heading to Austin for BCE
Ray Le Maistre, Editor-in-chief, 5/20/2016
Like Us on Facebook
Twitter Feed
BETWEEN THE CEOs - Executive Interviews
In this latest installment of the CEO Chat series, Craig Labovitz, co-founder and CEO of Deepfield, sits down with Light Reading's Steve Saunders in Light Reading's New York City office to discuss how Deepfield fits in with the big data trend and more.
Grant van Rooyen, president and CEO of Cologix, sits down with Steve Saunders, founder and CEO of Light Reading, in the vendor's New Jersey facility to offer an inside look at the company's success story and discuss the importance of security in the telecom industry.
Animals with Phones
Live Digital Audio

Our world has evolved through innovation from the Industrial Revolution of the 1740s to the information age, and it is now entering the Fourth Industrial Revolution, driven by technology. Technology is driving a paradigm shift in the way digital solutions deliver a connected world, changing the way we live, communicate and provide solutions. It can have a powerful impact on how we tackle some of the world’s most pressing problems. In this radio show, Caroline Dowling, President of Communications Infrastructure & Enterprise Computing at Flex, will join Women in Comms Director Sarah Thomas to discuss the impact technology has on society and how it can be a game-changer across the globe; improving lives and creating a smarter world. Dowling, a Cork, Ireland, native and graduate of Harvard Business School's Advanced Management Program, will also discuss her experience managing an international team focused on innovation in an age of high-speed change.