& 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
Kicking off BCE 2017, Light Reading founder Steve Saunders lays blame for NFV's slow ramp-up and urges telecom to return to old-fashioned standards building and interoperability.
Flash Poll
Live Streaming Video
Charting the CSP's Future
Six different communications service providers join to debate their visions of the future CSP, following a landmark presentation from AT&T on its massive virtualization efforts and a look back on where the telecom industry has been and where it's going from two industry veterans.
Women in Comms Introduction Videos
Cisco: Mentoring Critical to Attract & Retain Women

7|19|17   |   6:40   |   (1) comment


Liz Centoni, senior vice president and general manager of Cisco's Computing System Product Group, shares why mentoring in all its forms is important for women and what Cisco is doing that's made a difference for women in tech.
LRTV Custom TV
Gigabit LTE With Snapdragon 835

7|12|17   |     |   (1) comment


At an event in Wembley stadium, EE used its live network to demonstrate gigabit LTE using a Sony Xperia XZ Premium smartphone with a Qualcomm Snapdragon 835 chip.
LRTV Custom TV
Implementing Machine Intelligence With Guavus

7|12|17   |     |   (0) comments


Guavus unites big data and machine intelligence, enabling many of the the largest service providers in the world to save money and drive measureable revenue. Learn how applying Machine Intelligence substantially reduces operational costs and in many cases can eliminate subscriber impact, meaning a better subscriber experience and higher NPS.
LRTV Custom TV
Unlocking Customer Experience Insights With Machine Intelligence

7|12|17   |     |   (0) comments


When used to analyze operational data and to drive operational decisions, machine intelligence reduces the number of tasks which require human intervention. Guavus invested in Machine Intelligence early. Learn about the difference between Machine Learning and Machine Intelligence.
Women in Comms Introduction Videos
Verizon VP Talks Network, Career Planning

7|12|17   |   4:49   |   (0) comments


Heidi Hemmer, vice president of Technology, Strategy & Planning at Verizon, shares how bold bets and the future of tech define her career.
Telecom Innovators Video Showcase
Masergy's NFV Journey

7|11|17   |     |   (0) comments


Ray Watson, vice president of global technology at Masergy, discusses the advantages and challenges in entering the still-maturing NFV market for the past three years.
Telecom Innovators Video Showcase
Mavenir on RCS Cloud Platform & Multi-ID

7|10|17   |     |   (0) comments


Guillaume Le Mener, head of marketing and corporate development at Mavenir, discussed RCS and the recent launch of Multi-ID, which supports T-Mobile's DIGITS, the revolutionary new technology that breaks down the limitation of one number per phone and one phone per number.
LRTV Custom TV
ADTRAN Executive Outlines Trends in Next-Generation 10-Gigabit Cable Networks

7|10|17   |     |   (0) comments


Hossam Salib, VP of Cable and Wireless Strategy at ADTRAN, outlines key trends as MSOs begin to deploy next-generation Gigabit and 10-Gigabit cable networks. In the interview, Hossam outlines the advantages of a Fiber Deep architecture, FTTH options including EPON and RFoG, and the importance of SDN and NFV in building next-generation high-bandwidth cable networks.
LRTV Interviews
Global Capacity: Bandwidth Demand Driving Ethernet Growth

7|6|17   |   6:37   |   (0) comments


At Light Reading's Big Communications Event in Austin, Texas, Global Capacity's VP of Marketing Mary Stanhope talks about how the demand for bandwidth is changing the way service providers deliver broadband services.
LRTV Interviews
Colt's Services Chief on Digital Delivery

7|5|17   |   16:12   |   (0) comments


Rogier Bronsgeest, the chief customer experience officer (chief CEO!) at Colt, discusses the way in which the service provider interacts with its customers these days and his aggressive net promoter score (NPS) targets.
Women in Comms Introduction Videos
BT VP: Women Should Fill Security Talent Gap

7|5|17   |   6:00   |   (2) comments


By 2020 there will be six security jobs for every qualified worker, and Kate Kuehn, vice president of Security for BT in the Americas, says BT wants to encourage women to fill the shortage in jobs.
LRTV Interviews
Colt Sales Exec on Services Trends

7|4|17   |   12:59   |   (0) comments


Colt's sales director for enterprise, James Kershaw, sheds some light on the services currently in demand and how network upgrades are influencing customer demand.
Upcoming Live Events
September 28, 2017, Denver, CO
October 18, 2017, Colorado Convention Center - Denver, CO
November 1, 2017, The Royal Garden Hotel
November 1, 2017, The Montcalm Marble Arch
November 2, 2017, 8 Northumberland Avenue, London, UK
November 30, 2017, The Westin Times Square
All Upcoming Live Events
Infographics
With the mobile ecosystem becoming increasingly vulnerable to security threats, AdaptiveMobile has laid out some of the key considerations for the wireless community.
Hot Topics
Mobile to Power Online Video Consumption – Zenith
Aditya Kishore, Practice Leader, Video Transformation, Telco Transformation, 7/19/2017
Can Mushroom Sprout in Crowded SD-WAN Field?
Carol Wilson, Editor-at-large, 7/18/2017
AI Will Be Ubiquitous in 2020 but Overhyped in 2017 – Gartner
Sarah Thomas, Director, Women in Comms, 7/18/2017
Facing the Facebook Video Threat
Gary Miles, Chief Marketing Officer, Amdocs, 7/17/2017
Brocade, Broadcom Merger in Doubt
Iain Morris, News Editor, 7/19/2017
Like Us on Facebook
Twitter Feed
BETWEEN THE CEOs - Executive Interviews
Following a recent board meeting, the New IP Agency (NIA) has a new strategy to help accelerate the adoption of NFV capabilities, explains the Agency's Founder and Secretary, Steve Saunders.
One of the nice bits of my job (other than the teeny tiny salary, obviously) is that I get to pick and choose who I interview for this slot on the Light Reading home ...
Animals with Phones
Fuzzy Quick Fix Click Here
If you can't access it, is it really broken?
Live Digital Audio

Playing it safe can only get you so far. Sometimes the biggest bets have the biggest payouts, and that is true in your career as well. For this radio show, Caroline Chan, general manager of the 5G Infrastructure Division of the Network Platform Group at Intel, will share her own personal story of how she successfully took big bets to build a successful career, as well as offer advice on how you can do the same. We’ll cover everything from how to overcome fear and manage risk, how to be prepared for where technology is going in the future and how to structure your career in a way to ensure you keep progressing. Chan, a seasoned telecom veteran and effective risk taker herself, will also leave plenty of time to answer all your questions live on the air.