Light Reading

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
Networks of the future will rely on "white box" switches and servers rather than proprietary hardware and that's going to alter the shape of the communications industry. Who says so? John Chambers.
LRTV Custom TV
The Benefits of HyperScale Clouds for NFV

3|27|15   |   01:50   |   (0) comments


Hyperscale cloud has been developed by the Internet giants to support the creation and delivery of software-based services at blistering speeds, and at the lowest possible cost. The original ETSI NFV vision was to adopt hyperscale cloud architecture and practices. This vision has become somewhat obscured along the way, due to misunderstandings about the hyperscale ...
LRTV Huawei Video Resource Center
eLTE Rapid Meets the Need for Speed

3|26|15   |   4:45   |   (0) comments


Designed especially for emergency and dedicated ad hoc local mobile communications coverage, Huawei's eLTE Rapid solution can deliver trunked voice, video and data coverage for multiple users over a 6km range and be set up in just 15 minutes, explains Huawei's Norman Frisch.
LRTV Huawei Video Resource Center
On Videos: Challenges & Opportunities

3|26|15   |   5:56   |   (0) comments


Most everything is now connected. And along with 4K and 4G technologies, everyone could be creating and broadcasting video contents. Users are expecting better video experience with any screen, anywhere and anytime. Operators will meet new challenges, but also see some big opportunities.
LRTV Custom TV
JDSU: Delivering Dynamic Networks for a Personalized Experience

3|26|15   |   5:59   |   (0) comments


Light Reading speaks to JDSU at Mobile World Congress 2015 about new solutions in the areas of HetNets, VoLTE, backhaul, virtualization, big data analytics, and real-time intelligence.
LRTV Custom TV
Smarter Service Chaining & New Ways to Benefit From Qosmos Technology

3|25|15   |   03:11   |   (0) comments


David Le Goff, director of strategic and product marketing at Qosmos, explains how the company has added application awareness to subscriber information to make service chaining more efficient and reduce costs for networking and infrastructure. In addition, Qosmos technology, which has been delivered as C libraries, is now also available as a virtual machine, ...
Between the CEOs
Qosmos CEO: The Changing Face of DPI

3|24|15   |   13:53   |   (0) comments


LR CEO and Founder Steve Saunders sits down with the head of Qosmos to talk about the changing state of the art in deep packet inspection technology, including its role in SDN and NFV architectures. Also, how the comms market is becoming more like the automotive industry.
LRTV Huawei Video Resource Center
FC Schalke Scores With Its Agile Stadium

3|24|15   |   6:23   |   (0) comments


Top German soccer club FC Schalke 04 has deployed a new, agile WiFi network from Huawei in its Veltins-Arena stadium and is reaping the benefits in terms of customer satisfaction and business opportunities, explains marketing chief Alexander Jobst.
LRTV Huawei Video Resource Center
Huawei’s Insights on Mobile Video

3|24|15   |   7:51   |   (0) comments


More people than ever are now watching videos on smartphones. Seventy percent of mobile traffic will be video traffic until 2018. In this video, Huawei's exports give their insights on mobile video in terms of business model, network planning and 4G network construction.
LRTV Documentaries
The Rise of Industry 4.0

3|24|15   |   02:26   |   (9) comments


Are you ready for the fourth industrial revolution? It's a big deal for influential operators such as Deutsche Telekom.
LRTV Huawei Video Resource Center
Getting Connected With eLTE

3|23|15   |   06:04   |   (0) comments


Trunked radio communications have entered the 4G LTE world, and with Huawei's eLTE solution, can now deliver a full range of data and video services as well as push-to-talk voice, explains Huawei's Norman Frisch.
LRTV Huawei Video Resource Center
Funkwerk’s on Track With Huawei

3|19|15   |   3:23   |   (0) comments


GSM-R technology specialist Funkwerk and Huawei have forged a partnership that is benefiting both parties, notes Funkwerk's Gottfried Winter.
LRTV Documentaries
How EANTC Tested Cisco's Virtualization Solutions

3|18|15   |   5:49   |   (0) comments


Carsten Rossenhövel, managing director of independent test lab EANTC, tells Light Reading founder and CEO Steve Saunders about the innovative approach his team had to take when validating Cisco's service provider virtualization and cloud solutions.
Upcoming Live Events
April 14, 2015, The Westin Times Square, New York City, NY
May 5, 2015, Hyatt McCormick Place, Chicago, IL
May 6, 2015, Georgia World Congress, Atlanta, GA
May 12, 2015, Grand Hyatt, Denver, CO
May 13-14, 2015, The Westin Peachtree, Atlanta, GA
June 8, 2015, Chicago, IL
June 9-10, 2015, Chicago, IL
June 9, 2015, Chicago, IL
June 10, 2015, Chicago, IL
September 29-30, 2015, The Westin Grand Müchen, Munich, Germany
All Upcoming Live Events
Infographics
Hot Topics
Women in Tech Coming Into Focus
Sarah Thomas, Editorial Operations Director, 3/20/2015
The Rise of Industry 4.0
Ray Le Maistre, Editor-in-chief, 3/24/2015
Google Hires Wall Street's Most Influential Woman as CFO
Dan Jones, Mobile Editor, 3/24/2015
AT&T Woos SMBs With Small-Scale WiFi
Sarah Thomas, Editorial Operations Director, 3/26/2015
Net Neutrality Suits: Only The Beginning?
Alan Breznick, Cable/Video Practice Leader, 3/24/2015
Like Us on Facebook
Twitter Feed
Webinar Archive
BETWEEN THE CEOs - Executive Interviews
LR CEO and Founder Steve Saunders sits down with the head of Qosmos to talk about the changing state of the art in deep packet inspection technology, including its role in SDN and NFV architectures.
Chattanooga’s EPB publicly owned utility comms company has become a poster child for how to enable a local economy using next-gen networking technology. Steve Saunders, Founder of Light Reading, sits down with Harold DePriest, president and CEO of EPB, to learn how EPB is bringing big time tech to small town America.
Cats with Phones