ZTE stops operating activities and suspends trading

As a result of an export denial order by the U.S. Department of Commerce’s Bureau of Industry and Security (BIS), ZTE has opted to cease all major operating activities and trading of shares on the Hong Kong Stock Exchange.

The ban on ZTE comes as a result of selling products to Iran. It prevents ZTE from purchasing components (eg semiconductors), software (eg licensed components of Android OS) or technology from US manufacturers. It impacts ZTE products from smartphones to routing and switching gear.

Huawei is also under investigation by the US Department of Justice.

This could have widespread ramifications for the telecommunications industry as operators will now no longer be able to source replacement parts or upgrades. You could speculate that wholesale network replacement projects will soon follow as well as the trickle-down effect into OSS/BSS.

Note that I’m not just talking about ZTEsoft OSS/BSS here. I’m talking about all the other OSS/BSS that will need to be updated as a result of the seemingly inevitable ZTE equipment change-out. And I’m talking about the secondary, tertiary, etc impacts as well as all subsequent ripples. It starts with 5G but the ramifications could be much bigger over the next few years.

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